Fridays (with Benefits) - 4/19/19 - Benefits education could lead to longer-tenured employees
One of the goals of our Learning Centers is to educate readers about their tax-free health care accounts, so they can make the right decisions about which accounts to open, and what opportunities they'll have for the upcoming year. But education about employee benefits needs to start a lot earlier, to make the choices clearer for workers, and to keep them happy long after they sign on the dotted line.
But, as we see in this article from BenefitsPRO, the level of benefits education plays a bigger role than we thought in employee happiness … and it might even affect retention. Let's see why.
Lack of benefits understanding brings low morale, high turnover - Marlene Satter, BenefitsPRO
According to a new Colonial Life study, employees who don't get a thorough picture of their benefits options during open enrollment don't typically understand their choices, even after they make their selections. This isn't that surprising. What caught our attention is that there seems to be a scary correlation between employee understanding and happiness.
Long story short? Data shows that employees who don't fully understand their benefits are more likely to quit within the coming year.
What's even more concerning is that there doesn't seem to be any urgency by employees to change this. Just look at these stats:
- 33% of workers spend less than a half hour choosing benefits during enrollment.
- 36% spend less than an hour even researching their options.
The article goes on to explain how this hastiness leads to lower morale, less confidence in their company, and even complete job dissatisfaction. It also highlights how different demographics had some markedly different approaches to selecting benefits.
Now, we can't speculate that the lack of benefits education is directly responsible for turnover. But having a company properly explain options and help employees select an ideal plan certainly seems like it would improve morale.
We're curious to see how the results of the Colonial Life study pan out, and if it will make a difference when open enrollment starts this fall.
Fridays (with Benefits) is a weekly roundup of the latest headlines about employee benefits -- from FSAs to fitness programs and everything workplace wellness. It appears every Friday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.