BlogsEmployee Benefits: Why Communication with Your Employees Matters
April 10, 2017, by John Welches
When it comes to providing great employee benefits, it’s not always a matter of who spends the most money. Instead, multiple studies have shown that an employee’s level of satisfaction heavily relies on how benefits are communicated to them. In this article, we will touch on why communicating employee benefits is so important.
Communication = Satisfaction
At Centennial, we believe that it’s necessary to have reliable data in order to understand what your peers are offering and how employees feel about the benefits you provide. But don’t just take our word for it - a recent study found this to be true, too. It explained that companies that offered above average benefits, yet didn’t communicate the benefits well to their employees, had a satisfaction rating of only 25%. On the other hand, a 76% satisfaction rating was achieved by companies that had effective communication, despite offering employee benefits considered to be below average.
What Does this Data Mean?
The study proves that when your employee benefits are communicated well, the employees will have a better perception of the benefits they are receiving. As an employer, it’s a good idea to explain the benefits being offered and do everything you can to make your employees feel satisfied with the benefits they are receiving. Odds are, when they have a solid understanding of the benefits and know how to get the most out of them, people will feel better about whatever is made available.
Another article was published recently by Benz Communications. In it, they asked several leaders in the benefits industry about the importance of communication in relation to employee benefits. Each one agrees with this message and adds valuable insight.
Diana Andersen of Zions Bancorporation comments, “Most employees do not see the value of employee benefits until they use it. It’s not all about the paycheck, but also the ‘hidden paycheck’ as we sometimes refer to benefits.”
Jennifer Weinstein of McKesson adds, “Like a simple party invitation, benefits communications should give you the facts in a simple format—with clear information about what you need to know, what you have to do and when you have to do it.”
Improve Your Employee Benefits Communication
The point is that employees need to understand their benefits, whether they use them or not. Develop a communication system that first educates your senior leaders and then gets the information to all of your employees in a way that they can comprehend. When they see the true value of each benefit offered, they will feel more satisfied overall.
For more information about employee benefits management and effective communication strategies, click here.