5 benefits mistakes that cost employees

Like a teen in a Porsche, an uninformed employee with a great benefits package is bound to make pricey mistakes. This article outlines the mistakes your employees are making with their benefits and some of our proven strategies to change their behavior for the better.

July, 22, 2019 | By Bob Armour – BenefitsPro.com

Mistake 1: Choosing the wrong plans

Employees waste an average of $750 a year by choosing a plan that’s the wrong fit for them. Meanwhile, their employers waste anywhere from $500 to $2,100 a year on each employee who chooses the wrong plan. The average total cost of health care on the verge of $15,000 per employee, and with health care only getting more complicated, those numbers aren’t dropping anytime soon.

Communication strategies to try:

  • Avoid jargon: In all your benefits communications, explain things the way you would to a friend, in-person—with clear, conversational language instead of insurance gobbledegook. In particular, define terms like “deductible” and “premium.” Those words might be second nature to you, but to your employees they’re a clear signal to feel overwhelmed and panic-choose their plan from last year.
  • Create messaging focused on groups: By tailoring your messaging to fit a group’s unique benefits pain points, you’re more likely to get and keep their attention. It may take a little extra effort, but it’s worth it to create content for different employee demographics.

A few meaningful employee groups: Different demographics (Generation Z, Generation X, Baby Boomers); union vs. non-union employees; recent hires vs. tenured employees; employees getting married or having a child soon

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