Two studies say better informed employees are much more likely to report higher levels of satisfaction, even with less rich benefits.
Employers that offered excellent benefits packages but did a poor job communicating about them had a turnover rate of 17%, says the first study. When communication was effective, turnover was cut in half, even for companies whose benefits made up less than 10% of employees’ total compensation.
The findings agree with the second study, which found 76% of those whose companies had done a good job communicating about their benefits were satisfied with them even if the benefit package was less rich. Where the company didn’t do a good job explaining, just 22% were satisfied, even in companies that offered the richest benefits.
A related article says companies are failing at communicating about benefits. The Employee Benefits Trend Study found that a staggering three-fourths of U.S. workers have no idea that their employers are weighed down under rising healthcare costs. Most think they spend less than $2,000 a year on them. (The Kaiser Foundation reports that the average employer spends $7,289 for family coverage and $3,137 for individuals). And a MetLife study says fewer than a third of workers give their companies high marks for benefits communication
Does your company adequately communicate your benefits plan?
How well do you know what is included in your benefit plan?
How is your company communicating about its benefit plan?
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