While employee benefits communication has made some positive strides over the past several years, Unum’s fifth annual survey of working Americans suggests there’s still room for improvement.“Employees really are struggling with their feelings of financial security. The percent that rate themselves as being financially secure has actually dropped since 2011,” reports Barbara Nash, Unum’s VP of Corporate Research. She noted that those who have a stronger opinion of their employer and the benefits education they have received tend to be more confident about their finances.
Of significant import for plan advisors,
Nash says it’s important not to assume that employees are receiving or understanding information about their non-medical insurance benefits “Employers really need to keep this type of information front and center with their employees,” she adds. “If these important benefits are offered, then make sure employees are aware of them and have the tools they need to make good decisions.”
One of the biggest communication challenges is explaining the value of benefits to employees between the age 18 and 34, according to
For example, the cost of signing up for short-term disability benefits offered on a voluntary basis could equal just three cups of gourmet coffee per paycheck. Also, the danger of lacking adequate income protection in the event of an illness or accident could result in drastically altering one’s lifestyle, causing individuals to miss their car and rent payments and forcing them to become dependent on their parents or others for support.
Less familiarity with benefits in general, and with financial protection insurance in particular, also may call for more coaching. “Young people need to be reminded about the importance of these benefits at more frequent intervals,” Nash says. “It can’t be just once a year.”