Is your employee benefits package innovative? Do you have a chief medical officer? Do you care about work-life balance? Does your organization offer autism benefits? Is your workforce aware of the financial gains possible by optimizing voluntary benefits?
A generous employee benefits package is an outstanding way to retain top talent and attract new talent.
It's no secret that today's employers face a tough challenge as they push to offer benefits packages that meet organizational goals, while, at the same time, pushing to control rising costs and manage workforce priorities. Innovative benefits packages optimized with the requirements of today's workforce in mind are the way to go.
Keep in mind, benefits optimization is an approach to designing a portfolio of employee benefits that maximizes desired workforce outcomes against a benefits budget.
- Benefits optimization strategies help employers optimize their workforces in terms of the investment they make in their benefits packages and overall benefits program, with employee productivity and retention in mind.
- Recognizing that benefit plans may be designed to drive employee behaviors, many employers work with benefits brokers and consultants to optimize benefits using broad frameworks that span group benefits, health and wellness, retirement, and compensation.
Why get innovative with benefits packages? You like employee loyalty, don't you?
According MetLife’s 14th Annual U.S. Employee Benefit Trends Study, released earlier this year, employee loyalty is on the rise, with 45 percent of employees reporting they plan to work for their current employer 12 months from now, compared with 41 percent the previous year. In fact, loyalty is strong among all generations with 57 percent of baby boomers and 53 percent of both Generation X and millennials saying they are committed to their current employer’s goals. This may be due to increasing financial concerns: just 46 percent of all employees expect their personal financial situation to get better in the next year, compared to over half (52 percent) in 2014.
Additionally, according to the study:
- Employers have a significant opportunity to educate employees on traditional and voluntary benefits and how they can be used to address financial concerns. The study revealed that among millennials, confusion is big, with only 52 percent had an understanding of life insurance, compared to 69 percent of boomers; similarly, only 38 percent of millennials had an understanding of long-term disability insurance, compared to 57 percent of boomers.
- Employees are unclear as to the practical and financial value of voluntary benefits value of voluntary benefits, with only 47 percent of employees agreeing that non-medical benefits can help them limit their out-of-pocket medical expenses. For employees without a savings cushion of three months – including approximately 65 percent of millennials – these expenses could lead to a financial drain.
To avoid confusion about benefits, and to optimize innovative benefits packages, it’s imperative that today's progressive employers create optimal enrollment conditions, enabling their employees to make informed decisions about which benefits best suit their specific needs. This includes providing employees with a variety of robust resources and personalized offerings to result in the type of informed benefits decisions that drive employee loyalty and workforce retention.