PRINT & READ How the Power of Employee Benefits are Perceived
No doubt you have heard many of the platitudes about “making the best of a bad situation” and “good things come to those who wait.” We can only hope so as the American people have been waiting for quite some time for the economic pendulum to swing back around restoring financial growth and security to the masses.
Fortunately, the economic forecast looks promising as we head into the second decade of the millennium. Most industries across the nation are rebounding and starting to fill vacant jobs, while new businesses are emerging to fill in the holes left gaping open when their predecessors folded. However, the reality is “we’re not out of the woods yet.”
The recession has undoubtedly created a bad state of affairs generating financial insecurity in the workplace. Sixty-three percent of human resource professionals said the recession had a negative impact “to some extent” on their employee benefit offerings, according to a report from the Society of Human Resource Management (www.shrm.org).
To make the best of their bad situations, some of some of the measures companies have taken to trim down costs (and benefits) to employees were cutting back on business travel, relocation and housing assistance, and performance bonuses. Other types of company perks such as handing out special event tickets, hosting holiday parties, and planning company picnics were also slashed.
Holding the Line
On the other hand, according to a recent nationwide study of employee benefits trends, most “employers did not reduce their core benefits in response to the crisis” and with relatively modest reductions were able to uphold 401(k) matching despite the country’s fiscal maelstrom. This suggests that employers realize having good employee benefits are critical for attracting and keeping employees.
Likewise, most employees continued participating in company benefits programs although the belts around their own personal budgets had tightened considerably. The general consensus behind this is that most workers feel benefits are extremely important and the best way to obtain them is through the workplace. Overall, we feel that people have developed a deeper appreciation of employee benefits and understand they may need to “pay more to get more” in this post-recession economy.
Although the economic downturn has presented a myriad of challenges for the companies and businesses we represent, it has also introduced new possibilities and interesting opportunities. Looking ahead and working together with employers and employees, we are devising creative ways to supplant cost-prohibitive benefit programs with less expensive alternatives the entire family can benefit from. This also enables the companies we work with to retain their top key employees as new employment opportunities are opening up in the post-recession wake.
A good, solid employee benefits package will continue to be an effective means of sustaining job satisfaction and encouraging employee loyalty, which is a big consideration for most employers. There is now a direct correlation between job productivity and job benefits, and as the job market continues down the road to recovery employers will need to support and uphold this connection as one of their main objectives.
Communication is Key
The key to maintaining employee satisfaction is by effectively and routinely communicating company benefits to employees and supporting them whenever issues and/or questions arise. The more awareness employees have of their benefits and the better they understand how they work, the higher their level of job security and satisfaction.
Unfortunately, many employers have botched communication efforts because they have been preoccupied with trying to wrap their arms around healthcare reform and looking for ways to cut corners. A recent MetLife study of employee benefits trends listed employers’ three most important benefits objectives as:
- 53 percent: controlling health and welfare benefits costs
- 47 percent: retaining employees
To help address these issues, employee benefits providers such as The Kennion Group (http://www.kennion.com), can open the doors to better communication and education so that employees can make more informed decisions about their benefits. We can include on-site employee orientation to introduce a new benefit program, online access to forms and information, access to one of our benefit experts to answer questions or help with ongoing issues, and much more.
Outsourcing employee benefits matters takes employers out of the middle and allows them to concentrate on more pressing business objectives – such as higher profit margins. In addition, we can provide immediate returns on company benefit investments by custom tailoring packages to suit the needs of the employees while saving the employer time and money.
Reader Comments (1)
Funny how the idea of communication has to be reiterated time and time again...keeping employees informed is invaluable -- they are more likely to trust the employer, remain a worker, work harder, and refer their friends/colleagues to the company, etc., etc. Employers who understand this succeed.