- Key Insight: Discover how employer-led education can turn voluntary benefits into competitive retention tools.
- What's at Stake: Miscommunication risks could undermine benefit ROI and employee financial resilience.
- Forward Look: Expect rising AI and tailored video strategies to reshape benefits education.
- Source: Bullets generated by AI with editorial review
Offering a strong package of voluntary benefits can make a company stand out in today's competitive workforce. But experts say the key lies in explaining how these cost-effective solutions work, an area where
Employees need more education on voluntary benefits, and it's equally important to have a wide range of messaging to explain how the plans work, according to Stephanie Shields, head of employee benefits at Equitable.
How to deliver that messaging depends on who the audience is, Shields added. A recent survey by Equitable revealed that younger generations are more likely to
Overall, 55% still rely on HR materials and information sessions to understand their workplace benefits. But a growing number of people are
With social media, there's a risk that employees could come across misinformation about how a particular benefit works, Shields says. That's where HR managers have an opportunity to deliver their own tailor-made videos that are personalized for their company's portfolio.
"I think the important point is every employer's plan is different: The benefits they choose, the plan designs they have and the interaction with the whole portfolio that they offer," Shields says. "And so sometimes the general information … that's out there could be misleading. However, employers and carriers can really create videos or social media experiences in their education strategies that can be more tailored."
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Healthcare costs
Making sure that employees understand how their benefits work is especially important when it comes to healthcare. According to Equitable's survey, 80% of Americans worry that an unexpected medical expense could upend their financial goals. Younger generations are the most worried: 89% of Gen Z and millennials said an unplanned medical cost would disrupt their financial plans, compared to just 56% of baby boomers.
To pay for unexpected medical expenses, some people rely on credit cards or hardship withdrawals from their retirement accounts. Those decisions can have many long-term effects on a person's financial wealth and overall health, Shields says.
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Voluntary benefits can put cash right in their pocket to offset expenses such as hospital bills,
"They're more essential than ever, and we're really passionate about making sure U.S. workers understand how they can protect themselves," she says.
Financial advisers
One of the other main findings of the survey was that financial professionals are an untapped resource in benefits selection. While 80% of respondents say it's important to have one, only 20% actually consult a financial adviser during open enrollment.
Financial advisers can not only assist with investing and retirement planning but also help employees make smarter benefits selections. "Employers play a very important role in
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Shields is also a big believer in the importance of holistic planning. In a time of inflation when the cost of living and rent continue to rise, some employees are forced to make their income stretch further.
"As things become more complex, employers … can make access to financial information more available in the workforce, so financial professionals can help people make smarter decisions and plan earlier."
