By McKay Moravick
Group Benefits – Read Time: 4 Min
In today’s competitive job market, business owners face constant pressure to attract and retain talent. Offering a strong employee benefits package has become one of the most effective ways to stand out as an employer. It’s not just about salary anymore as employees are looking for real meaningful benefits that enhance their quality of life. A great benefits package is the key to building a loyal workforce and avoiding the risk of employees going to competitors who offer more attractive benefits.
But equally important is making sure your team fully understands those benefits. A great package is only as good as your employees ability to understand and use them. This article discusses why it’s essential to focus on both the benefits themselves and the communication around them.
Why a Solid Benefits Package is Essential
As competition for talent has intensified, employee expectations have risen. The U.S. Bureau of Labor Statistics recorded 47.8 million people quitting their jobs in 2021, a 33% increase from the previous year. With millions of job openings, businesses are recognizing that the ability to attract and retain skilled employees relies on more than just compensation.
Employee benefits have become a big part of the equation. According to a study by the Society for Human Resource Management (SHRM), 90% of employees view healthcare as an “extremely” or “very important” benefit, and 83% place high value on flexible work arrangements. These numbers reflect the shift in priorities. Employees are more concerned with health, wellness, and work-life balance than ever before.
A well rounded package shows that you care about your employees overall well-being. Key parts of an effective benefits package include:
- Health and Wellness Benefits: This includes comprehensive health insurance, dental and vision coverage, and wellness programs that promote a healthy lifestyle.
- Financial and Retirement Benefits: Offering 401(k) plans, pension options, and financial planning assistance can help employees prepare for their future.
- Time-off and Leave Benefits: Paid vacation days, sick leave, parental leave, and other flexible leave options show that you value work-life balance.
- Work-life Balance Benefits: Flexible work arrangements, remote work options, and child care assistance show a commitment to employee’s personal lives.
Businesses with extensive benefits packages experience better retention rates, with the SHRM study noting that 60% of employees said benefits were as a major factor in their decision to stay with their current employer.
The Importance of Clear Communication
While a competitive benefits package is crucial, it won’t have its intended impact if your employees don’t understand how to actually use their benefits. Employee confusion over healthcare plans, retirement contributions, and PTO policies is common and can ruin the value of the benefits you offer. If employees don’t know what’s available or how it works, they might not take advantage of offerings that could improve their job satisfaction and productivity.
A clear, structured communication strategy around benefits is essential. You can offer the best health plan on the market, but if your employees don’t understand it, they won’t be happy.
Consider the findings of the International Foundation of Employee Benefit Plans, which points out that businesses with better productivity and engagement levels often provide clear communication about their benefits.
Here are a few tips for improving benefits communication:
- Simplify: Use clear language when explaining benefits, and provide real examples of how employees can use them.
- Regularly Update: Host workshops or webinars to remind employees about their benefits.
- Provide Easy Access: Ensure all benefit information is easily accessible via an employee portal or handbook.
Empower Your Workforce and Improve Retention
A well communicated benefits package is no longer optional. It’s a necessity for businesses that want to remain competitive. The ability to keep talent depends on both what you offer and how you communicate those offerings. When employees fully understand and appreciate their benefits, they are more likely to stay loyal and perform at a higher level.
If you’re unsure where to start or need help upgrading your benefits package, I’m here to help. At Boettcher Insurance Agency, we specialize in helping business owners create group health benefits that meet the needs of their workforce. We’ll work with you to make sure your employees not only receive great benefits but also clearly understand how to make the most of them.
Feel free to reach out to me directly at 331-625-9777 or mckay@inschoices.com for a consultation or to discuss how we can support your business in building a benefits strategy that drives growth.
Sources: U.S. Bureau of Labor Statistics; Society for Human Resource Management; International Foundation of Employee Benefit Plans.