The do-it-yourself approach may be all the rage for home renovations but when it comes to benefits, employees still need guidance from their employers.
These employees are not getting the information they need on their own, says Phyllis Falotico, assistant vice president, group marketing at Guardian. As a result, she says, DIYers while thinking they are in charge and do not feel they need professional help managing their finances are falling behind their peers.
Is there a role for the employer to play? Falotico says yes. Even in an age of shifting costs employers need to think about all the channels that people need to learn, absorb information and even take action, she explains. And while access is the first step to help employees maximize benefits, she notes, education and tools in both an online and offline world are key components in the equation.
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Two-way communication and education, rather than one-way marketing material, can help employees see where gaps in their financial planning is occurring, adds Falotico. Its not just a one way message. You have to keep up in terms of where participation rates are and you have to do re-enrollments. At the end of the day you have to speak to them in terms of what their needs are and what solutions may be in place.
Needs change throughout the year, she adds, and a once-a-year message may be too little and occur at the wrong times. Consistent messaging throughout the year with greater access will give employers better tools and understanding of their health and financial needs (and how to use benefits to meet those needs).
This is especially true for millennials, who may need professional advice to achieve their long-term financial goals. But issues remain the same no matter where you fall in the generational spectrum. I think the generational issue is not around messaging, the generational issue is in terms of channel, says Falotico.
Needs and lifecycles have not changed dramatically over time, adds Falotico. Workers get older, get married and think about mortgage, tuitions etc. The way we get to them has changed and that multi-channel approach is what we need to think about.
For the most part, she says, the DIYers need to increase engagement with their employers about benefits, more than they have been, to ensure they achieve financial security.
According to the Guardian Life Insurance Company Workplace Benefits Survey, while four in 10 workers consider themselves DIYers, many of them are falling behind their colleagues on dealing with key financial and benefits decisions.
Just over half (52%) of DIYers attribute all or most of their financial preparedness to the benefits and retirement plans available through their employers. Yet because DIYers are often resistant to being helped, employers and providers alike may need to rethink their approach to reach this segment, says Falotico.
The survey also notes that only four in 10 middle-income workers have read newspapers or conducted online searches to learn more about insurance products. Only 32% have sought out the opinions of financial experts.
Joel Kranc is director of KRANC COMMUNICATIONS in Toronto, focusing on business communications.
