PIHRA Scope - Summer 2008 - (Page 19)

© maxexphoto: Image from BigStockPhoto.com Maximizing Returns from with Better Communications By J.J. Summerell Worksite Insight, LLC Benefit Investments “Respondents (to the survey) gave their companies the lowest marks at the most basic employee interaction level—getting employees to understand the cost and value of their health benefits” (Towers Perrin 2002 Study). One of the biggest challenges facing human resource managers is effective beneﬁt communication. Recruiting and retaining quality employees is much easier if the employees understand the value they receive from the beneﬁt dollars invested. In addition, employees with a better understanding of the total beneﬁts plan will participate more in the plan. Hard copy, highquality beneﬁt statements continue to be the most effective tool for comprehensive beneﬁt communication. In addition to reviewing the speciﬁc beneﬁts of each program, beneﬁt statements also quantify the cost of each beneﬁt paid by the employer. Employee morale and satisfaction with the beneﬁt plan increase substantially when the employee understands the value of the entire compensation package. Nationally, beneﬁt costs represent 42 percent of payroll, though 80 percent of covered employees do not understand all of these beneﬁts. Accordingly, recruitment and retention efforts are more successful when employees have a working knowledge of their beneﬁts program. COMMUNICATING THE LONG-TERM STRATEGY Beneﬁt statements have been in use for over 20 years in larger accounts. Today’s environment of rapidly escalating medical inﬂation has given beneﬁt statements another, perhaps more valuable, application: the communication of strategy. Employers facing continuing 10 percent to 20 percent-plus increases in group medical rates need to develop and communicate their plan for addressing these ongoing cost increases. Beneﬁt statements can put both the employer and the employee on the “same side of the table” when addressing the challenges that will face the health insurance industry over the next two to 10 years. BETTER COMMUNICATIONS continued on page 20 Summer 2008 PIHRAScope 19 FEATURE http://www.BigStockPhoto.com

Table of Contents Feed for the Digital Edition of PIHRA Scope - Summer 2008

PIHRA Scope - Summer 2008 Contents Message from the President HR Technology to the Rescue: What to Do in the Aftermath of the H-1B Visa Cap Bridging the Gap: When ‘IT’ is from Mars and ‘HR’ is from Venus HR Concepts Maximizing Returns from Benefi t Investments with Better Communications Strategic Marketing Alliance: Develop Yours as Easy as ABC… PIHRA Calendar Scope on the Districts PIHRA’s New Members Index to Advertisers

PIHRA Scope - Summer 2008

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