58% of employees are unaware of their benefits entitlement.
That means that not only do employees not know what benefits they have, when or how to use them, but they also don’t know how much their employer pays for them.
I talk about braggable benefits a lot. In the sense of employee’s bragging to other about their awesome benefit plan. But employers can and should be bragging about their benefits to current and new employees.
It’s story time.
Once upon a time, in the province of Alberta, an advisor shared this story with me. One of their clients had an employee leave to go to a competitor for an extra $2 / hour. Same work, we’ll call it a similar commute, just more money in their pocket. But after a week in the new job, this employee asked tier employer for their old job back. Why?
Working conditions were fine, the people were fine, management was fine. This employee was making more money. So why, after a week would they ask their previous employer for their old job?
It was the benefit plan. Specifically, the cost share in the benefits plan. You see the new employer was paying for half of the plan, where as this employee’s previous employer was paying for 100% of the plan (I’m sure with the exception of disability premiums). And that, was worth way more than the extra $2 per hour.
The group benefit program is an important part of the total compensation package, and employers should be bragging to current and future employees about not only the benefits they provide, but also how much they contribute to the cost. This small feature can be the difference between an employee staying or going, coming on or choosing another employer.
Need extra proof in the pudding? I have some delicious pudding for you care of McKinsey & Company. Their study found that after work flexibility the top reason why people accepted their current job was an adequate total compensation package. That of course includes benefits. And for those who left, a lack of support for employee health and well-being followed by inadequate total compensation are #5 and 6 on the list.
What’s the best way for employers to brag about their benefit plan?