As discussed in last month’s blog, employers must rethink the formation of corporate benefits packages to better attract and retain high-quality employees. The key point was creating a benefits package with different and refreshed options (or even deconstructing it to allow for greater choice and flexibility), but an equally important piece of the puzzle is effectively communicating with employees.
Remember, multiple generations make up the modern workforce, and it’s important to understand their different communication needs. Regardless of their generation, each employee may have unique preferences; these should be attuned to and included as the benefits package is created, announced, and implemented.
While the retirement plan is one slice of the holistic benefits package, it comes with its own set of challenges. For example, employee enrollment and deferral eligibility may be different than eligibility to receive employer contributions. An 18-year-old employee just starting their first job may not understand any of those terms, while a 60-year-old transitioning to a new employer might be full of questions about rollovers, in-service distributions, and more.
Will these employees learn best at a group meeting? With customized resource sheets? Working with a financial advisor in a one-on-one setting? Watching a pre-recorded, customized enrollment video? Don’t limit the possibilities, because the answer is likely a combination of several of these options; each generation will desire a range of communication channels. Technology offers more, too – consider email, text messaging, company intranet, webinars, online tools, social media, and apps. Some employees may be content with one-time efforts; others will desire constant engagement and more frequent messaging.
While carrying different expectations for relationships with their employers, commonalities abound among the generations. Employees want fair treatment, to be acknowledged for a job well done, and trust they are working in the right place. Paying attention to these desires, as well as incorporating a flexible benefits package with a healthy variety of communication channels, is ultimately a win for everyone.
Employees really do want to understand their benefits, and as an employer, it is your responsibility to effectively communicate with them. If your current methods aren’t measuring up, call the Shepherd Financial team. We’re here to help.
Attracting and retaining high quality employees is not a new challenge, but the benefits landscape has changed dramatically in recent years, particularly since millennials entered the workforce. And now that this generation is today’s largest workforce demographic (hint: it’s your employees who are anywhere from 23 to 38 right now), employers must rethink the construction of the overall benefits package. As you consider how to add value for employees and help your company grow, do you understand what millennials actually want?
The answer is twofold: different options than previous generations required, and the ability to create a customized benefits experience.
Don’t bristle at these desires – especially because of technology, today’s workplace is fundamentally different than it was 20 years ago. It makes sense your employees have new expectations, too. (Speaking of technology, it should be standard to have always-accessible employee benefit information, often through a secure online portal.)
Aside from health insurance and retirement plans, benefit options might include the ability to work remotely, flexibility in work schedules, student loan repayment plans, opportunities for professional development, lifestyle solutions like onsite child care, and corporate investment in wellness initiatives. While some of these options require creative thinking and scheduling, the positive results speak for themselves in overall employee wellbeing and productivity.
Regarding the customized benefits experience, it is becoming increasingly popular – and practical – to offer an à la carte solution. In short, employees receive a fixed amount of money as part of the benefits offering and may decide how to allocate their employer’s contribution. Closer to retirement, a baby boomer might select a higher contribution rate to the company retirement plan and a full suite of health insurance, life insurance, and long-term care insurance; a millennial employee may earmark less money for their retirement plan but include student loan repayment and extra parental leave.
Every company is unique, and so are your employees. Employers certainly have many decisions to make about the options to include, as well as how to structure the benefits program to meet compliance regulations. To discuss ways to better attract and retain employees through the benefits program, call the Shepherd Financial team.