April 26, 2013 (PLANSPONSOR.com) - Employers
that don’t effectively communicate the value of their benefits offering may not
get the credit they deserve.
The majority of employers think they do
an effective job communicating benefits, but research paints a different
picture. According to a white paper by Colonial Life, “Employee Benefits: Are
You Getting Your Money’s Worth?” only 23% of employees think their employers communicate their benefits very effectively. Even more troubling is the
finding that 9% of workers say the benefits communication they receive is not at all effective.
today account for more than 30% of employee compensation,” said Steve Bygott,
assistant vice president of marketing analysis and programs at Colonial Life.
“But if employers are not effectively communicating their benefits, they’re not
getting the full value of their investment. That kind of oversight can be very
Many employees, for example, do not
understand how much their employers pay for health insurance coverage, Bygott
told PLANSPONSOR. Employees without information about their current benefits
are unable to appreciate their value, the white paper says, which can undermine
the employer investment in providing them.
Employees Want to
Understand Their Benefits
Workers say benefits have taken on more
importance since the recession, and 82% say they are more interested in knowing
what their insurance benefits cover and how they work. Seventy-four percent
said they are more aware of the workplace benefits they have—or do not have.
Although employees want to better
understand their benefits, they may not have access to basic communication
tools and best practices, Colonial Life found. According to the research, the
majority (73%) of American workers with employer-provided benefits say
understanding their benefits is very important.