File 19: In today’s file, the entire team is back in the studio. They welcome Wendy Hall to discuss showing you the money. She is an Employee Benefits Advisor for USI Insurance Services. The group discusses the impact of taking an innovative approach to employee benefit programs. There are ways to do this in a very cost-effective manner.
Meet Wendy Hall
Wendy has spent many years in focusing in the areas of employee benefits and HR. Her passion is helping employers create a motivated and engaged workforce through effective benefits plan, without breaking the bank. The relative cost of benefits has a significant impact on the financials of most companies. Wendy’s objective is to help employers control those costs while getting employees excited about the available benefit options.
Transparency Leads to Value with Benefits
Molley is a strong proponent of ensuring the total benefits package is delineated in an offer letter. Ideally, that second page should go into great detail to help the prospective employee to easily see beyond the base pay. Many employers miss out on the opportunity to showcase the value of the entire package. It may be a lost opportunity to differentiate the offer from others that may be in consideration. This tactic can also be applied to an annual review.
Wendy notes this is a common topic executives want her perspectives on during an engagement. The arrive frustrated because employees or prospective employees are pursuing other options because they don’t fully recognize the value added by the benefits program and/or package. She points out that it may be a case of the employer failing to effectively communicate the value of the various elements being offered.
On the other side of the coin, many employers overlook the possibility of asking what their workforces would like to see as part of their benefits. Wendy points out that we have 5 different generations in the workforce, so a one-size-fits-all approach to benefits will typically fail. Employees have different needs and wants, depending upon the stage of life they are in.
Jamie recalls her first job. She read through the benefits, but didn’t understand the difference between co-insurance and co-pay. She didn’t understand how to make the optimal 401(k) selections. To make matters worse, the company didn’t provide resources to help her think through these important options.
How Are Companies Beginning to Educate Their Employees about Benefits?
Wendy begins with insurance, because it’s typically a large, specific line item on the financials. However, open enrollment really happens once a year. So, how can companies use the remaining 11 months of the year to educate their respective workforces? One option is to begin analyzing the gaps in care and/or education. Are there trends and grouping in the types of questions employees are asking? Those clusters can identify opportunities for focused education and communication.
Proactive implementation of this education and communication may ensure the upcoming open enrollment period goes more smoothly. It also empowers the employees to may better decisions about their individual benefits.
How Often Should an Organization Audit Its Benefit Package?
If your organization is run by a board, or is a government entity, regulations are probably already in place regarding the audit frequency. For example, there may be a requirement that an RFP be issued every 3 years. There’s also a due diligence process.
If your feedback loops are indicating certain elements aren’t working well, it’s a signal you should begin investigating alternative providers and options.
The size of your organization doesn’t necessarily have an impact on the frequency. In reality, it may be driven more by the available funding for the benefit programs.
Wendy comments the importance of considering the costs related to retention, turnover and recruitment, that bucket may provide additional fund that could be leveraged to improve the mix of benefit options being made available to your employees. She notes benefits are definitely a differentiator related to those metrics.
The Importance of Employee Surveys
It’s important to include sections related to benefit offerings in your employee surveys. It affords the workforce a chance to provide input and share perspectives about what they find valuable and what they don’t. That process can foster a sense of ownership. The positive effect is multiplied when they see the organization implementing changes, based on that feedback.
How Transparent Should Management Be Regarding the Available Benefits?
Wendy views transparency as “your best friend.” It’s a competitive marketplace and employees often have options. The grass may seem greener elsewhere, if the organization is not promoting the condition of the grass on its side of the fence.
Take the time to conduct in-depth benefit reviews to education and help employees to optimize their selection/use of the available benefits. Wendy has evidence to show that even a poor benefits plan, when properly communicated, can be viewed as a strong plan by the employees. At the same time, a great program that’s not properly communicated won’t perform as well.
Jamie recommends sharing benchmark information. Sharing information can help to build trust throughout the organization. Wendy notes that from an internal perspective, employers should also benchmark their plans to proactively identify deficiencies, as well as advantages, when compared to their respective industry sectors and geographic regions. This data should be available from your benefits broker.
Jason points out that companies can allocate specific time for companywide presentations, including company financials. This is an opportunity to highlight the various elements of the benefit program and to be candid about certain cost constraints.
Is There a Difference to Pre-Employment vs. Active Employment Benefit Needs?
Wendy approaches this question by sharing how the traditional benefits program is being forced to evolve. Employees are looking for more of a cafeteria-style program. She connects that trend to back to the multi-generational nature of the workforce. Options are important.
Lifestyle Savings Accounts (LSAs) are increasingly popular. Employers set aside specific funds that can the employee can be applied to certain services. Life coaching, pet insurance, funeral expenses, home office furniture, gym memberships are innovative benefit options. The success of these types of options relies on effective communication about the available services and how they can help.
Wendy notes there are vendors who can assist in putting these options together, similar to HSA or FHA programs. Remember, the LSA would utilize post-tax dollars, as opposed to pre-tax dollars. Another advantage is LSAs give the employees a sense of control or ownership in their benefits.
Financial education services are popular options for employees. Financial stress is a productivity sink for many employees. They spend time at work trying to deal with personal, financial issues. The stress can be a major distraction leading to health issues. Providing a financial counseling or service option can be a valuable benefit.
Available Resources for Companies that Don’t Have Benefit Teams
Wendy explains small employers have a variety of options to address this challenge. Most brokers have groups dedicated to supporting smaller organizations. The needs are often different, so providing experienced resources can help to guide those clients through these challenges.
Consider reaching out to community resources, such as Chamber programs. Many chambers have access to group plans enabling smaller organizations to leverage their membership plans.
Benefit services and analysis should be available, assuming you’re working with the right team.
Molley emphasizes the importance of engaging your broker to help manage the offerings, rather than trying to do it independently. A program with a good mix of options is a workforce retention tool.
Healthcare Benefits are Complicated
Wendy shares that even after 30 years in the industry, when she receives an EOB, it’s still stressful. Now, imagine how an employ probably feels when they receive one. How confusing can the information be for them?
This is another area in which education is important. Knowing whom you should contact with questions is important. Is it your carrier or your broker? You need to be able to reach out for assistance.
Remember there are many vendors available to assist with the education, benefit selection tools, enrollment, and census reviews to guide you. All of this can help the employer to select the best possible plans for their organizations. It’s much better than the alternative of throwing a dart at the wall, during open enrollment. Having an advisor to guide you through the options and tools is a vital resource. Organizations need to understand the true costs, the value and determine if those plans align with the organizational culture.
Communicating the Value of the Benefits
Jamie adds that even if you’ve but together a strong benefits program, you still need to communicate the value of what it provides. Internal marketing is a component of a successful program. She recommends utilizing the total rewards statements as an effective tool for accomplishing this objective.
These statements are an example of showing the employee the cost of what the organization is providing in terms of benefits. It can help the employee better understand the broader, compensation picture, beyond simply their wages or salary. Many HR systems provide this capability already.
Molley explained how Wendy mentioned, in preparing for this discussion, that there’s a $500 billion loss incurred due to absenteeism, turnover, lost productivity, vacancies, etc. Employers and employees need a way of better understanding the shared impact of these issues.
Should You be Apprehensive about Including Benefits Information in Marketing Materials?
Jason asks Wendy what she would recommend companies do in there outreach efforts. The answer is simple. Why should an organization be hesitant about communicating with their employees? Employees leave for a variety of reasons. They have options. The cost of employee turnover is real and quantifiable.
Wendy goes on to explain that every story about your company is going to be told. The question is whether the leadership, including HR and Marketing, will contribute to what’s being told. This comes back to an organization’s efforts related to establishing and maintaining that triangle of trust discussed during her 2024 KY SHRM interview.
If your company is apprehensive, are the benefits worth bragging about, in the first place? If not, there’s work to be done. You can begin this by going back to the benchmarking discussed earlier.
Ultimately, if there’s no enough funding to increase the benefit packages, consider other ways to accomplish the goal. Jaime suggests reviewing how the time off of work policy could become more flexible. Is there an opportunity to market (internally and externally) the work environment and culture of your organization?
Wendy suggests there are strategic ways to increase the perceived value. For instance, many banks would enjoy the opportunity to educate your employees on various financial topics. This might provide the bank with an opportunity to gain new clients, as a result. This could be an extremely low-cost, high-impact benefit option.
Developing programs related to preventative care is a way to add value, while possibly avoiding more substantial costs, should a disease be detected much later in its progression. Many employees may not have a primary care physician, so are their providers in your area who would be willing to work with your organization. Again, this can be a win-win situation. Wendy notes that 80% of our healthcare spend is related to care based on lifestyle decisions. Many of these decisions result in chronic, medical conditions. Some of which, may have been reduced with better preventative care. It begins with education. Preventative care education can be a low-cost addition to your benefits program.
To Contact Wendy Hall:
Website: www.USI.com
Email: [email protected]
Phone: (502) 777-0833