Is It Possible to Have Too Many Benefits?

The unexpected justification for why additional health benefits might not be what your staff needs. There can be an excess of employee benefits. It might seem strange to explain to a young child that there can be too much ice cream. It might sound false until they get a stomach ache.

Do you spend your money on the appropriate benefits?

Benefit leaders have introduced numerous new programs and benefits in the last two years. And it begs the question, did corporations overreact to the pandemic? Should businesses scale back and provide fewer options? Did they provide an insufficient number of the other food groups and too much ice cream?

You risk wasting money on benefits that won’t be used if you don’t carefully consider what you give. Here are three strategies to analyze your benefits and identify potential areas for reduction.

1. Identify the most well-liked benefits

People tend to be relatively constant regarding the health benefits they seek from their job. Harvard Business Review polled 2,000 job applicants in 2017 to see their most valued benefits. Simple perks like dental, better health and vision insurance, more flexible work schedules, and longer vacation time were at the top of the list for survey respondents.

Benefits that look excellent on paper but are frequently underutilized were listed last. These featured complimentary exercise or yoga courses, as well as an on-site gym. Although employees didn’t say they were essential, these may be good.

But what do workers mean when they say insurance is “better”? The following year’s poll fills in the gaps. Employees were asked what they liked best about their health coverage and cited affordability and comprehensiveness.

Costs were cited as the factor that the vast majority of respondents disliked the least.

The foundation of what your employees expect from their healthcare benefits has not altered, even though healthcare demands have changed due to the pandemic. They don’t want flashy gimmicks; they want inexpensive insurance that satisfies their healthcare needs.

2. Communicate with employees

Consider your staff communication regarding your benefits. Do you provide private consultations? Do you contact them during the open enrollment or maintain a constant dialogue with them all year long? What can you do to reduce the jargon used in your communications?

When employees experience significant life events like marriage or divorce, promotions, babies and deaths, and so forth, you might also want to talk to them about perks like financial and mental health. The more specifically you can address the demands of your staff, the more effective your communication will be.

Surveys of the workforce will be beneficial in this area. Ask the staff about their needs and whether they know the available options. That will enable managers to focus on issues before they become too significant and allow leaders to identify what is working.

3. Simplify the process

People seek affordable healthcare options. However, they also want to understand the benefits you are providing because even the best resources will be useless if employees don’t use them or make the wrong decision regarding enrollment.

It would seem logical to increase your options—after all, more options are better. However, the Boston College Center for Retirement Research asserts that’s not usually the case. According to the research, a rising corpus of studies shows that Americans “don’t understand the knowledge they already have and are making incorrect judgments based on these beliefs.” (Returning to the metaphor, ice cream comes in ten delicious flavors. Not so great: 1,000 flavors).

Play around, and don’t be scared to change course

Does that imply you shouldn’t try out novel health benefit options? Not at all, no. The boom of new products brought on by the epidemic is wonderful. What businesses should be providing has changed, along with the requirements of the workforce.

The Kaiser Family Foundation reports that in 2021, “58 percent of larger firms and 39 percent of larger enterprises increased online counseling services for emotional or financial difficulties, relationship issues, or other stressful situations.”

However, it remains to be seen if these services will be regularly included in employer-provided health plans. It’s crucial to routinely assess how frequently employees use new benefits and how satisfied they are with them as you experiment with new ones. Use analytics to identify what works and what doesn’t as you experiment with health plan offerings. Spongoni should be removed from the menu if no one is ordering scoops.

Contact Information:
Email: rick@andrikfinancial.com
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

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