From the June 2008 issue of Ceridian Connection

Gone are the days when employees were handed a benefits plan and nodded their heads in agreement with no questions asked. Escalating health care costs and new benefits options have changed all that, urging today's workforce to take a smart-shopper approach to benefit choices. Benefits also are becoming more of a deal breaker when it comes to choosing or staying with an employer. The 6th Annual MetLife Study of Employee Benefit Trends conducted at the end of 2007 reports that 45 percent of employees say that benefits are an important reason to remain with their current employer. Likewise, more employers are recognizing that benefits drive employee satisfaction. Of the respondents surveyed, 58 percent said that benefits play a very important role in employee retention.

As employees assume more responsibility for their financial and personal health, forward-thinking employers recognize the importance of providing employees with the resources to make informed benefit decisions. For example, in its 2007/2008 Communication ROI Study, consulting firm Watson Wyatt reported that 53 percent of employers used printed materials, special mailings and employee meetings to increase enrollment in benefits programs in 2007. This figure more than doubled from 25 percent in 2003.

"With the rising cost of health care, employees need to understand the various benefit options that are in place in order to make educated decisions," says Kim Douglass, Ceridian Benefit Services product manager.

Make communication count
Employers measure return on investment for benefits programs in terms of hiring, retention and employee productivity. Investing in education and communications may be a cost-effective way for employers to get more from their benefits dollar by clearly explaining to their workforce what benefits cover and why they are valuable. Innovative employers are developing programs that provide better guidance to employees and, in many cases, allow them to tailor benefits to the needs of specific groups or individuals. In a March 2007 article, Take Steps to Relieve Common Benefit Communication Failures, the Society for Human Resource Management suggests the following techniques to strengthen benefit communications with employees:

• Provide total compensation statements to help employees understand the costs and benefits of the products and services provided.
• Work with benefit providers to tailor communications to employees based on demographics and/or life stage.
• Where appropriate, personalize messages through targeted communications to help employees make better choices.
• Reach out to workers with communication options applicable for the respective age group. With diversity in employee population age, one size doesn't fit all in terms of how you distribute information.
• Conduct an analysis of competitors and peers to determine the benefit mix they provide to their workforce. Let employees know if they are receiving superior benefits in certain areas.
• Educate top executives inside and outside the HR department to understand that incremental costs associated with communication and education efforts might result in potential gains in hiring, retention and employee productivity.

They learn, you earn
As the competition for top talent continues to escalate, employers need to underscore the value of the benefits they are offering while providing employees with the tools they need to make informed choices. Though benefit plans are often complex and difficult to understand, providing employees with the resources they need to make benefits decisions frees employers from time spent answering benefit-related questions.

"For the employer, support tools can reduce bottom-line costs through improving efficiencies and reducing administrative time managing benefits," explains Douglass.

With Ceridian's Benefits Knowledgebase and Decision Support Tools, employees and plan participants no longer have to struggle to get access to their plan details. Employees can be assured access to comprehensive content and tools that include plan comparisons, medical calculators, medical selection tours, high deductible plan information and consumer-driven health care content. Personalized, online content is constantly updated in response to the ever-changing benefits and economic environment. Your workforce can get answers to detailed benefit questions written in "plain English" based on the eligibility rules of your company's benefit plan. Employees and participants can better understand their needs, model their choices and make more informed decisions about their benefits plans.

Self-service for your employees can deliver positive results for your bottom line. Learn more about Ceridian's comprehensive, proven solutions by contacting your Ceridian representative.