Financial benefit plans such as health savings accounts and defined contribution retirement plans are more important now than they were five years ago, most employers believe.
In a recent survey, 90 percent of U.S. employers stated potential hires see more value than in the past, and half think they are better incentives than ever before, according to the 2012 Workplace Benefits Report. This annual study, conducted by Bank of America Merrill Lynch, also indicates that understanding benefits can improve employee engagement, according to the Society for Human Resource Management (SHRM).
Researchers interviewed 1,000 employers who offer 401(k) plans and the same number of employees enrolled in such plans. The majority of these employers communicate with their workers about financial benefits no more than once each year, which may contribute to limited understanding. Many employees reported uncertainty concerning the nature of their employee benefits and how to take advantage of them.
The study suggests several measures that might be effective. Discussing the broader advantages of benefit plans and communicating more frequently might help. Similarly, communicating in different ways and tailoring information to specific employees are possibilities. Researchers also found many employers considering the possibility of providing access to financial professionals.
