Educate to increase participation in FSAs
From the December 2008 issue of Ceridian Connection.
Make the most of the benefits your company provides
When it comes to employee benefits, HR professionals are feeling the squeeze. Budgets are tightening. Costs are increasing. And faced by the reality of workforce demographics, it has never been more important to offer the kind of benefits that retain and attract top talent.
A reasonable response is to design new employee perks and benefits. Some companies are considering car allowances to offset the increase in gasoline prices. Companies also are closely examining the relative value of health care benefits and the impact on employees' pocketbooks. Childcare reimbursement is being discussed. But one Ceridian expert says that companies might be overlooking the one component that could make the most of their employee benefits: education.
Do all you can -- and then educate
"In these challenging times," says Jon Attwooll, product manager for Ceridian's benefits services, "the value of employee benefits rises to the forefront of any conversation in HR. Your employees know what they want. Your organization knows what they can afford. The best advice I can give to HR professionals in this situation is to use the power of education to achieve success. When you're working hard to find ways to deliver meaningful benefits to a workforce you value, it pays to communicate. Tell everyone -- clearly and often -- what you are doing on their behalf, why you have made the commitment, and how they benefit personally. Employees need to know that you are putting forth substantial effort to make their well-being a priority."
Powerful benefits, powerful communication
Attwooll offers a perfect example of how education can help employers make the most of the employee benefits they provide. "Flexible Spending Accounts (FSAs) are a great way to capitalize on affordable benefits that provide the most value," he says. "These are powerful benefits -- and powerful communication can deliver surprising results. When you drive FSA participation through cost-effective education, the employer reaps savings and the program participants receive a substantial value."
Ceridian Flexible Spending Accounts represent one way to reduce ever-rising health care costs. This employer-sponsored benefit allows employees to pay for eligible medical expenses on a pretax basis. (Ceridian also offers similar accounts for dependent and child care expenses.) The popularity of FSAs is attributed to their widely acknowledged win/win nature. Both employers and employees have much to gain from offering and utilizing FSAs.
Employers favor FSAs because they owe no payroll taxes on employee FSA contributions. And, with the right participation rates, employer tax savings can pay for the entire cost of FSA administration. Employees choose FSAs because they can deduct money from their paycheck and put it into a special account that is protected from taxes. When employees use the money in their account to pay for out-of-pocket family care expenses, they save an average of 30 percent on eligible expenses every year. FSAs provide employees with tangible help in their effort to manage health care costs for themselves and their families.
Education makes all the difference
"In FSA programs," says Attwooll, "employee education makes all the difference, because maximum benefit comes from maximum participation. That's why we have introduced a valuable educational resource: Ceridian FSA ParticipationPlus. This program improves employee participation by using effective education and communications -- at virtually no cost to employers."
Attwooll explains that Ceridian FSA ParticipationPlus is a top cost-management strategy for today's businesses. "This is benefits education at its most effective," he says. "For just the cost of shipping and handling, employers receive compelling information to educate their workforce (from the top down) about the benefits of participating in an FSA plan. Letters introduce program goals to employees. Posters displayed in break rooms or highly visible areas keep the message fresh. Serial communications that depict real-life savings scenarios are e-mailed to employees. Ceridian even includes an educational DVD and a guide with user-friendly instructions on how to use the materials for the greatest effect."
Take action to maximize value of your benefits offerings
"It is a challenging environment for employers who want to make the most of the employee benefits they provide," says Attwooll. "That's why strategic selection of benefits, coupled with proactive education about their value, serves employers well. Compelling, innovative employee education can help improve people's lives and strengthen their relationship with their employer. For organizations across the country, that's an innovative step to success."
Make the most of the benefits your company provides
When it comes to employee benefits, HR professionals are feeling the squeeze. Budgets are tightening. Costs are increasing. And faced by the reality of workforce demographics, it has never been more important to offer the kind of benefits that retain and attract top talent.
A reasonable response is to design new employee perks and benefits. Some companies are considering car allowances to offset the increase in gasoline prices. Companies also are closely examining the relative value of health care benefits and the impact on employees' pocketbooks. Childcare reimbursement is being discussed. But one Ceridian expert says that companies might be overlooking the one component that could make the most of their employee benefits: education.
Do all you can -- and then educate
"In these challenging times," says Jon Attwooll, product manager for Ceridian's benefits services, "the value of employee benefits rises to the forefront of any conversation in HR. Your employees know what they want. Your organization knows what they can afford. The best advice I can give to HR professionals in this situation is to use the power of education to achieve success. When you're working hard to find ways to deliver meaningful benefits to a workforce you value, it pays to communicate. Tell everyone -- clearly and often -- what you are doing on their behalf, why you have made the commitment, and how they benefit personally. Employees need to know that you are putting forth substantial effort to make their well-being a priority."
Powerful benefits, powerful communication
Attwooll offers a perfect example of how education can help employers make the most of the employee benefits they provide. "Flexible Spending Accounts (FSAs) are a great way to capitalize on affordable benefits that provide the most value," he says. "These are powerful benefits -- and powerful communication can deliver surprising results. When you drive FSA participation through cost-effective education, the employer reaps savings and the program participants receive a substantial value."
Ceridian Flexible Spending Accounts represent one way to reduce ever-rising health care costs. This employer-sponsored benefit allows employees to pay for eligible medical expenses on a pretax basis. (Ceridian also offers similar accounts for dependent and child care expenses.) The popularity of FSAs is attributed to their widely acknowledged win/win nature. Both employers and employees have much to gain from offering and utilizing FSAs.
Employers favor FSAs because they owe no payroll taxes on employee FSA contributions. And, with the right participation rates, employer tax savings can pay for the entire cost of FSA administration. Employees choose FSAs because they can deduct money from their paycheck and put it into a special account that is protected from taxes. When employees use the money in their account to pay for out-of-pocket family care expenses, they save an average of 30 percent on eligible expenses every year. FSAs provide employees with tangible help in their effort to manage health care costs for themselves and their families.
Education makes all the difference
"In FSA programs," says Attwooll, "employee education makes all the difference, because maximum benefit comes from maximum participation. That's why we have introduced a valuable educational resource: Ceridian FSA ParticipationPlus. This program improves employee participation by using effective education and communications -- at virtually no cost to employers."
Attwooll explains that Ceridian FSA ParticipationPlus is a top cost-management strategy for today's businesses. "This is benefits education at its most effective," he says. "For just the cost of shipping and handling, employers receive compelling information to educate their workforce (from the top down) about the benefits of participating in an FSA plan. Letters introduce program goals to employees. Posters displayed in break rooms or highly visible areas keep the message fresh. Serial communications that depict real-life savings scenarios are e-mailed to employees. Ceridian even includes an educational DVD and a guide with user-friendly instructions on how to use the materials for the greatest effect."
Take action to maximize value of your benefits offerings
"It is a challenging environment for employers who want to make the most of the employee benefits they provide," says Attwooll. "That's why strategic selection of benefits, coupled with proactive education about their value, serves employers well. Compelling, innovative employee education can help improve people's lives and strengthen their relationship with their employer. For organizations across the country, that's an innovative step to success."
