Are your employees making the most of their benefits?
It’s no secret that employee benefits are a great way to attract and retain top talent. However, the fact that employees appreciate benefits doesn’t necessarily mean they use them. If you find that this is happening in your company, it’s up to you as an employer to do something about it. Fortunately, an employee benefits specialist like Pacific Prime Hong Kong can help. Let’s look at whether your employees are making the most of their benefits and what you can do to encourage them to.
Employee benefits plan: Why are they going unused?
Employers recognize the value of providing employee benefits in an ever-increasing competitive job market, which is why many invest in creating an attractive employee benefits package. Similarly, better benefits tend to keep employees loyal to their employer.
Employers are spending around 32% of all employee compensation on benefits such as:
- Health insurance
- Paid time off
- Retirement plans
- And more
Even so, many benefits are not being used – and this was already happening before the pandemic. 768 million vacation days were unused in 2018 in the US alone. Likewise, only a fraction of eligible employees participate in their employer’s retirement plan. Since the start of the pandemic, engagement in employee wellness programs has actually dropped.
So why are employee benefits going unused? To put it simply, employees can’t use their benefits to their full potential because they don’t know enough about them. Employers often invest in an employee benefits package without communicating the actual benefits with employees. It’s common for new hires to learn about employee benefits during the onboarding process, but that’s about it.
What you can do to encourage employees to use their benefits
Since lack of communication tends to be the reason employees don’t use benefits to their full advantage, the first thing employers must do is communicate. Constant communication about employee benefits is essential – and should not be limited to during onboarding and open enrollment. It also shouldn’t be limited to a single place.
Regularly remind employees of their benefits via the different channels of communication at work, such as email, intranet, benefits portal, and social media pages. Even though some employees may ignore frequent messages, regular reminders are an effective way to get everyone familiar with the benefits on offer. Plus, employees that are confused about any benefit will be encouraged to ask their manager or HR about it.
Along with communication, the following tips can also help employers improve benefits usage.
Educate employees
In some cases, employees are aware of the benefits available but they don’t understand how to actually use them. For example, money matters can be overwhelming and confusing for the average employee. Employers can offer a financial wellness program to support employee financial wellness.
Educate employees about the different benefits available to them and look for ways to communicate the role benefits play so employees understand when to use them. Provide educational videos and benefits guides that are easy to access and navigate.
Live Q&A sessions with an employee benefits broker or specialist can also help employees learn the ins and outs of benefits plans and packages. It’s advisable to host an open group presentation and set aside some time to answer more in-depth questions in one-on-one meetings.
Simplify sign up
Discussing benefits during open enrollment isn’t enough, especially since this period can be particularly overwhelming for HR and employees alike. Employees might turn to their dependent’s plan or purchase their own if they:
- Don’t get the information they need
- Have to wait too long
- Are deterred by a complicated sign-up process
Streamline the enrollment process by making it possible for employees to sign up online. By using a benefits system, employees can automatically enroll with carriers digitally. Not only does this make it easier and more effective for employees, but it reduces HR’s workload as well. To further simplify the process, be sure to provide digital guides to guide them from start to finish.
Make plans customizable
Customization is essential to creating a benefits package that works for all ages. With so much diversity among generations, employers will find that customizable plans easily appeal to the whole workforce. Additionally, a wide variety of benefits to choose from makes it more appealing for employees to stay with an employer.
You can start by offering a selection of benefits such as healthcare, dental, vision, and maternity from leading providers. Provide affordable options so employees can design an employee benefits program that meets their unique requirements.
Reevaluate your employee benefits package
Employees might not be using benefits on offer because they simply aren’t useful to them. One way to find out if that’s the case is to conduct a survey of the workforce. Ask employees what value they get from existing benefits, especially if you’re noticing certain benefits are not being used. The answers will reveal whether another benefit would be more useful in its place.
Some ways you can future-proof your employee benefits scheme include implementing new strategies, systems, and technologies. The goal is to constantly look for ways to enhance your employee benefits offerings to ensure your investments are paying off and your employees are happy.
Enhance your employee benefits plan with Pacific Prime Hong Kong
Whether you’re looking for an employee benefits plan or group health insurance in Hong Kong, Pacific Prime Hong Kong is here to help. As a leading employee benefits specialist and health insurance broker, we can offer tailored advice on employee benefits and insurance, help you design the ideal plan for your needs and budget, and so much more. Contact us to arrange a consultation today.
Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content - no matter how complex the subject is.
Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.
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