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Show Employees Their Hidden Paychecks

www35814 — Thu, 01 Jul 2010 13:40:32 +0000

Show Employees Their Hidden Paychecks

A top-notch workforce is essential to your company’s success. It’s always important to have engaged, loyal employees, and in an economic downturn, it’s more critical than ever to keep employee morale high to maintain the competitive edge top-quality employees bring.

One way you keep your best employees on board is by offering a generous benefits package. But do your employees fully appreciate your investment? According to many surveys, they don’t. Employees tend to focus on their share of the costs, and many grossly underestimate the amount their employers pay. Employees also tend to underestimate what employers pay for other benefits such as paid time off (PTO), tuition reimbursement, pension or 401(k) plans and statutory benefits like employer-paid Social Security.

So how do you make sure employees know and appreciate how much you spend on their benefits – traditional benefits like health, dental and life insurance as well as benefits like PTO and statutory benefits? Communication is the key.

One of the most effective ways to drive home the point is to present the full costs of all the benefits you provide as an employer in the form of a “hidden paycheck" or a total compensation statement. For example, if you pay an average of 20% of an employee’s salary on providing a traditional benefits package, an additional 5% on matching 401(k) contributions and approximately 10% each on PTO and statutory benefits, you could provide a “hidden paycheck” communication or benefit statement outlining the following for an employee who receives an annual salary of $50,000:

YOUR HIDDEN PAYCHECK

$50,000 in salary

$10,000 in employer contributions for health, dental and life insurance

$5,000 for time off

$2,500 in 401(k) contributions

$2,500 for statutory benefits

$70,000 = TOTAL COMPENSATION

Of course, the amounts will vary depending on how much you contribute to employee benefits. But as you can see, even with fairly conservative estimates, the amount is significant. A hidden paycheck communication gives employees a big-picture view and increases their appreciation for employer contributions.

There are a variety of ways in which you can present hidden paycheck information. It can be as simple or elaborate as you choose. At myBenefitStatements, we have a number of formats available (click here for sample formats). Or you could make it an annual tradition, presenting hidden paycheck information or a benefit statement at year-end in the form of an annual total pay statement for every employee.

No matter how you choose to convey the information, revealing hidden paycheck amounts is a worthwhile endeavor. It can help you get the word out about how much you actually spend, raising employee awareness of your investment in your human capital. It can build valuable good will, which is a critical commodity, especially in times of economic hardship, when your need for a competitive edge is greatest.

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A Look at Healthcare Reform’s Impact on HSAs and FSAs

www35814 — Tue, 22 Jun 2010 12:19:15 +0000

If your company currently sponsors a flexible spending (FSA) or health savings account (HSA) to allow employees to pay out-of-pocket medical expenses with pre-tax dollars, be prepared for upcoming changes.

Under the new law, maximum annual FSA contributions are reduced, and there are new regulations affecting how the funds can be used. The intent of the new rules and penalties is to generate revenue which can be used to fund aspects of the health care reform package.

FSAs and HSAs (assuming the employee is covered under a qualified high deductible health plan) allow an employee to contribute tax-free funds that can be used to pay for deductibles, drug co-pays, treatments that are not covered by health insurance, and other qualified medical expenses.

Beginning on January 1, 2013, the annual limit for FSAs will be set at $2,500. Previously, the IRS had stipulated that employers could establish their own FSA contribution limit, and according to the Center on Budget and Policy Priorities, these limits generally fell into the $2,000 to $5,000 range. In 2009, Mercer’s National Survey of Employer-Sponsored Health Plans stated that the average yearly employee contribution was $1,424.

Annual limits for HSAs, however, were not affected by the new legislation.

Be aware that some restrictions will become effective more quickly. For example, as of January 1, 2011, FSA and HSA participants will no longer be able to spend the funds on over-the-counter medications unless a physician has specifically prescribed them. Also starting next year, non-qualified withdrawals from HSAs will be subject to a 20% penalty instead of the 10% penalty which is currently applied.

Our sister division can help you with all your FSA, HRA and HSA questions. Click over to myCafeteriaPlan.com to learn more about how we can help you communicate with your employees.

IRS Health Care Tax Credit Available for Small Businesses

www35814 — Wed, 09 Jun 2010 12:27:46 +0000

The recent health care legislation signed into law by President Barack Obama contains a Small Business Health Care Tax Credit that will help small businesses with the cost of providing their employees with health care. The tax credit’s benefits are available immediately for the 2010 tax year.

According to the Congressional Budget Office, small businesses are expected to save an estimated $40 billion by 2019, due to the Small Business Health Care Tax Credit. The tax credit is effective retroactive to January 1st, 2010 and covers up to 35 percent of a small business’s premiums, with the rate increasing to 50 percent on January 1st, 2014.

While non-profit organizations are eligible for the credit, they will receive a lower percentage. Tax exempt organizations will be able to receive up to a 25 percent tax credit in 2010, which will be raised to 35 percent in 2014.

The tax credit has broad eligibility, covering 4 million small businesses. Any business that pays at least 50 percent of employee health care costs, employs the equivalent of 25 or fewer fulltime workers (allowing eligibility for companies with 50 part-time workers), and pays an average employee salary of $50,000 or less (not including owners and their family members) will be eligible for the Small Business Health Care Tax Credit.

The maximum credit of 35% is available for small businesses with 10 or fewer fulltime workers and an average salary of $25,000 or less. For businesses that pay employees between an average of $25,000 and $50,000, the tax credit gradually phases out. The gradual phase out also applies to businesses that employ an equivalent of 10 to 25 full time workers (20 to 50 part time workers).

Businesses are able to claim the credit for a total of six years. They will be eligible to claim the credit for four years, from 2010 to 2013, and then any two years after the 2013 date.

To keep businesses from abusing the system by picking a high-cost plan, the Small Business Health Care Tax Credit will only be eligible for the average health insurance cost of the state where the business is located. This information will be provided by the IRS at a later date.

For more information, refer to the IRS website at http://www.irs.gov/newsroom/article/0,,id=220809,00.html?portlet=6.

How Healthcare Reform Will Affect You and Your Employees

www35814 — Thu, 27 May 2010 21:51:52 +0000

Just about everyone in the country is wondering how the passage of the health reform bill by Congress will affect him or her. According to Kaiser Health News, this historic legislation could “have an effect on almost every citizen.” People, even those who are unemployed, will be able to get medical care. But professionals who have been enjoying the best health coverage available may possibly see their benefits dwindle.

What Are the Immediate Changes?

There are certain things that will happen in the first 6 months after the bill is actually signed into law:

Insurance companies will not be allowed to put lifetime limits on coverage. This means that people with chronic health conditions will never “use up” all of their insurance coverage.
People with children on their company insurance plan can keep unmarried dependents enrolled until they turn 26. This is very important because of the number of college graduates who are unemployed.
Insurance plans will be required to cover preventative health services like colonoscopies, osteoporosis screening, screening for things like high blood pressure, diabetes, and sexually transmitted diseases and quit-smoking counseling.
Pre-existing serious health conditions can no longer prevent people from getting health insurance. They will be able to purchase coverage from a government-subsidized exchange. However, this coverage will not be available until 2014.

Health Insurance Will Be Required

Uninsured people will be required to purchase health insurance by 2014. Subsidies will be available that reduce the premiums subject to income limits.

Penalties will be imposed on people who do not purchase insurance that could be as much as 1% of their income.

Changes to Medicare

Tighter controls may be put on decisions for care that are considered too costly. The care provided to older people may even be restricted. Cancer screening could be denied for older citizens.

The Medicare system will see a huge hit because approximately one-half of the health reform costs for the next 10 years will come from the Medicare budget.

Pre-Existing Illnesses and Loss of Coverage

Starting this year, the health reform bill will ensure that insurers can’t deny coverage to any child based on existing health problems. In 2014, this will be expanded to include all applicants.

Within the first six months of the bill being signed into law, an insurer cannot drop policyholders except in cases of fraud.

Longer Wait Time to See Your Doctor

Millions more people will have access to health care but the number of healthcare workers will not grow quickly enough to keep up. You can expect to wait about twice as long to get in to see a doctor as it did in the past.

Changes to the Coverage You Get from Your Employer

Employers who offer high-value, ‘cadillac’ health plans will probably begin to cut back on those benefits. If they don’t do so by 2019, they could face fines from the government. This could possibly mean no more vision or dental coverage or going to a specialist without a referral from your family doctor.

Benefits for Women

With this new health bill, insurers will have to cover maternity care the same way they cover any other medical procedure, but not until 2014. Employers will also be required to allow break time for mothers who are nursing and a private place where they can use their breast pump.

Losing or Leaving Your Job

If someone quits or loses their job, the same exchanges that help lower income people purchase insurance will be available. This means when you leave your job, you don’t necessarily have to pay the high COBRA costs. This is very important for people with a pre-existing condition. You may even be able to get free health coverage under some circumstances.

Higher Taxes

In 2013, Medicare payroll tax will go up for incomes over $200,000 a year.

As these changes come about, the staff at myBenefitStatements is ready to help you communicate… why not give us a call today!

A Look at Healthcare Reform’s Impact on Employers

www35814 — Mon, 10 May 2010 13:20:22 +0000

A Look at Healthcare Reform’s Impact on Employers

On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act. Along with the Health Care and Education Reconciliation Act of 2010, this legislation will make significant changes to our current health care system.

The Act adds new responsibilities for employers and insurance carriers. While most of the provisions will start in 2014 or later, some provisions are effective right away or within a short period of time after enactment.

Effective 2010

Small-Business Tax Credit. A tax credit of up to 35 percent of the employer’s health care contribution is available for qualified small employers (any employer with no more than 25 full-time employees and average wages of less than $50,000). This tax credit will increase to 50% starting in 2014 once exchanges are operational.
Early Retirees. A temporary reinsurance program is provided to employers that offer coverage to early retirees between the ages of 55 and 64.
Health Plan Changes. 1) Plans must offer unlimited lifetime benefits and annual benefit limits will be restricted. 2) Pre-ex conditions will be prohibited for children under 19. 3) Recissions are prohibited except in the case of fraud. 4) Plans must cover certain preventive health services at no cost to the insured. 5) Dependent coverage age limit extended to 26.
Federal High Risk Pool. Temporary establishment of a high risk health insurance pool for individuals unable to find insurance elsewhere.

Effective 2011

W-2 Reporting. Employers must report value of health care benefits provided on employee w-2s, but not as taxable income.
Higher Penalty Tax on Non-Qualified Health Savings Account (HSA) Withdrawals. Non-qualified withdrawals will be taxed at 20% versus the current 10% penalty.
Cafeteria Plans. A new Simple Cafeteria Plan is created through which small employers (less than 100 employees) can easily provide tax-free benefits to their employees without the administrative burden of sponsoring a cafeteria plan.
Standardized Definition of Qualified Medical Expenses. Costs for over-the-counter medications obtained without a prescription will no longer be considered a qualified medical expense.

Effective 2013

Flexible Spending Account Limits. Annual contribution limits are reduced to $2,500 per year, with CPI increases available in future years.
Itemized Deduction for Medical Expenses. The Act increases the income threshold for claiming the itemized deduction for medical expenses from 7.5 percent to 10 percent. Individuals over age 65 would be able to claim the itemized deduction for medical expenses at 7.5 percent of adjusted gross income through 2016.
Higher Payroll Taxes for High Income Earners. The hospital insurance tax rate will be increased 0.9 percentage points for wages over $200,000 for individuals and $250,000 for those filing jointly.

Effective 2014

Employer Coverage Mandates. Employers with 50 or more employees who do not offer employee health coverage will pay $2,000 annually for each full-time employee, excluding the first 30 full-time employees. The penalty is increased to $3,000 for any full-time employee receiving a federal tax credit for coverage, because his or her employer health coverage is considered “unaffordable.” Coverage is considered “unaffordable” where the employee contributes more than 9.8 percent of his or her income, or the employer contributes less than 60 percent of the actuarial value of the plan.
Insurance Exchanges. Exchanges are created at the state level starting in 2014, where individuals and small employers can shop for health coverage. Initially, the exchanges would be available to individuals and small groups (less than 100 employees), unless the state opts to cover only groups with up to 50 employees. Starting in 2017, states could open the exchanges to larger groups.
Wellness Programs. Employers can offer larger rewards, up to 30% of the cost of coverage, to employees for participation in a wellness program or for meeting certain health-related goals.
Individual Tax Credits. Credits are available for people with incomes up to 400 percent of the poverty level for insurance purchased through an exchange.
Health Plan Changes. 1) Insurers cannot refuse to issue coverage on any individual due to pre-existing conditions. 2) Higher rates cannot be charged to any individual based on health status, gender or other demographic factors. 3) Coverage cannot be non-renewed or dropped because an individual participates in a clinical trial.

Effective 2018

High Value Plan Excise Tax. A nondeductible excise tax of 40 percent is imposed on any health insurance plan with combined annual employer/employee premiums exceeding $10,200 for individual coverage and $27,500 for family coverage. The tax would only apply to premiums in excess of the threshold.

Benefits Communication and Education Grow in Importance

www35814 — Thu, 01 Apr 2010 15:35:25 +0000

Employees who receive quality benefits education are more likely to feel valued by their employer and have a positive perception of their company. They also say they’d tend to stay with their current employer, even if offered a position with similar pay and benefits elsewhere. This testament to the importance of benefits communications comes from a survey commissioned by insurer Unum and conducted by Harris Interactive, and shows the connection between how well employees understand their benefits and how engaged and motivated they are at work.

In addition to the content and presentation of the communications materials themselves, the survey indicates that giving employees enough time to review communications, as well as using a variety of media, are keys to communications’ effectiveness. Employees who had more than three weeks to review benefits education materials were far more likely to say that they had enough time to make informed decisions. And, using at least three different forms of media-such as meetings, printed materials and Web site tools-enhances communication effectiveness because it recognizes different learning styles and helps ensure that the messages sought to be conveyed will be heard by all employees.

These themes from the Unum survey are particularly significant today, because employee benefits communications have taken on increased importance, for a number of reasons-

Employees must make more choices for their benefits today than ever before. In previous generations, employers that offered employee benefits typically provided a health plan, a pension plan, and some life and disability insurance. As health care costs exploded in the 1980s and 1990s, and increasingly shifted to employees, employers introduced multiple health plan options requiring employee choice. Simultaneously, in most workplaces, the company retirement plan morphed from a defined benefit pension plan to a 401(k) plan, requiring employees to choose whether to participate, how much to contribute, and what funds to invest in. Supplemental life and disability options became more available to most employees, along with an array of other voluntary benefits choices (group legal, long-term care, group auto/homeowners, etc.).

Given the array of benefits choices employees now face, education and communication efforts have taken on huge significance, since decision-making that is informed is most likely to result in appropriate choices. While the benefits choices available today do address employees’ individual needs, they also generally pass on to employees more responsibility. This trend first surfaced in the shift from defined benefit pension plans to defined contribution 401(k) plans, in which employees bear the investment risk. More recently, employers’ increasing adoption of consumer-directed health plans takes a similar path. Employees enrolled in these plans shoulder more of the financial responsibility for their ongoing health care costs, in exchange for a lower plan premium. For both 401(k) plans and consumer-directed health plans, education and communications supply the information that is critical to exercising the increased level of responsibility employees bear.

Getting the best value for one’s money is always important, but it’s even more so in a difficult economy. When money is tight-like it has been both for companies and employees lately-we want to make sure we spend our dollars wisely…and information is key to making good and appropriate purchases. Surveys indicate that most people spend much more time on other consumer purchases than they do on employee benefits enrollment-which, for many employees, is among their most significant purchases in any given year. Benefits communications can help employees make good spending decisions about their employee benefits.

Today’s benefits plans are more complicated than ever before. Consumer-directed health plans, for example, work dramatically differently than plans employees were covered under only a few years ago. These plans offer tax advantages to employees, but this too adds a layer of complexity for employees to understand. Again, effective communications can make a difference in enabling employees to get the greatest benefit from these plans.

You’ve got to communicate!

www35814 — Wed, 17 Mar 2010 12:30:16 +0000

Don’t underestimate the value of communications and education as a way to strengthen your company’s benefits package.

A study by the Prudential Insurance Company looked at a number of variables that affected employees’ perceived value of their benefits, and the effectiveness of communications topped the list. The study found effective communications can have as much an impact on employees’ satisfaction with their benefits as the actual benefits or amount of money invested in the benefits.

Even when economic factors force cutbacks and layoffs, organizations that focus on a strong communications program help their employees not only understand, but also appreciate, the benefits available to them – which contributes toward positive employee morale.

A separate survey from Watson Wyatt Worldwide dramatically shows the impact of benefits communications:

“Companies with above average benefits but ineffective communications had a 25% employee satisfaction level, while those with below average benefits but effective communications had a 76% employee satisfaction level.”

Stated another way, it can be better for a company to provide fewer benefits but explain them well, than to provide an expansive-and costly-package of benefits that employees don’t really understand.

Keep the following considerations in mind when assessing your benefit communications program:

Written communications should be in simple and understandable, yet engaging, language. Employees will respond best to communications that they can directly relate to, so use specific examples or modeling tools to help employees select benefits and understand how the benefits can work for them.
Recognizing that different individuals learn in different ways, use various communication methods and incorporate visuals along with text.
Communicate throughout the year, not only during open enrollment.
Help employees understand how the company’s benefits offerings are particularly relevant to them.
Communicate the full value of your benefit’s program by providing regular benefit statements. Reminding employees of their total compensation is a great way improve your employees’ perception of existing benefit programs.

If the prospect of embarking on a benefits communications campaign seems daunting, give us a call. We can help you provide ideas and strategies along with actual communications materials to enrich your employees’ understanding of their benefits.

Don’t underestimate the value of communications and education as a way to strengthen your company’s benefits package. As the research above indicates, dollars spent on communication and education can be as valuable an investment as dollars spent on the benefits themselves.

Be sure to take a look at a few of our sample benefit communications pieces online or give us a call today.

Communications Are Most Important Factor in Generating Satisfaction with Benefits

www35814 — Tue, 02 Mar 2010 13:22:55 +0000

Effective communications can have as much impact on employees’ satisfaction with their benefits as the actual benefits offered or the amount of money a company puts into a benefits plan. This finding, from a study by the Prudential Insurance Company, illustrates one way for companies to contribute toward positive employee morale, even when economic factors necessitate benefits cutbacks or restructuring.

The study looked at a number of variables that affected employees’ perceived value of their benefits. The effectiveness of communications topped the list, followed by a company paying all or most of the cost of benefits and then by a company offering a range of benefits. According to the study,

how employees perceive the value of their benefits directly influences how important benefits are to employees when selecting a job or when deciding whether to stay with a current employer.

This is because effective communications help employees to not only understand, but also appreciate, the benefits they have or those that are available to them. Thus, the study validates the positive connection between employee benefits and an employer’s recruitment and retention efforts.

A separate survey from Watson Wyatt Worldwide dramatically shows the impact of benefits communications: Companies with above average benefits but ineffective communications had a 25% employee satisfaction level, while those with below average benefits but effective communications had a 76% employee satisfaction level. Stated another way, it can be better for a company to provide fewer benefits but explain them well, than to provide an expansive-and costly-package of benefits that employees don’t really understand.

Keep the following considerations in mind when assessing your benefits communications-

Written communications should be in simple and understandable, yet engaging, language. Employees will respond best to communications that they can directly relate to, so use specific examples or modeling tools to help employees select benefits and understand how the benefits can work for them.
Recognizing that different individuals learn in different ways, use various media at your disposal for your communications. Go beyond written communications to also include emails, meetings/seminars, announcements, posters that highlight images and graphics, interactive web tools, and video conferencing.
Communicate throughout the year, not only during open enrollment. Use non-enrollment periods to highlight particular features of your benefit plans, perhaps focusing on one each month. This enables you to hone in on benefits or plan features that are particularly useful or unique, and that perhaps get overlooked during the frantic activity of annual enrollment. Such features might include wellness features in the company health plan, modeling tools available through the 401(k) plan, the advantages of pre-tax employee contributions, changing benefits during the year in response to a family status change, etc.
Help employees understand how the company’s benefits offerings are particularly relevant to them. For example, if your company offers voluntary benefits, employees are likely to have broad choices that go well beyond the one-size-fits-all approach to employee benefits. Highlighting the convenience, access and cost-savings features of workplace voluntary benefits can help employees see how advantageous such offerings can be to them.
Communicate the full value of your benefit’s program by providing regular benefit statements. Reminding employees of their total compensation is a great way improve your employees’ perception of existing benefit programs.

Be sure to take a look at a few of our sample benefit communications pieces online or give us a call today.

Use Communications to Involve Employees in Health Plan Spending Control

www35814 — Mon, 01 Feb 2010 13:06:51 +0000

Implementing cost-sharing increases or cutting benefits in an effort to bring health plan costs under control can be unpleasant tasks for employers, with concerns about how the news will impact employee productivity and morale. The better employees understand the reasons such plan changes are necessary, however, the lesser the chance that the changes will have a negative impact.

Employee communication materials like total compensation statements, total reward or benefit statements are great tools to help explain and communicate changes to programs.

According to the 2009 UBA Employer Benefit Perspectives survey from United Benefit Advisors, more than 80% of employers felt employees are at least aware of the health care crisis and the reasons for increased cost sharing or benefit reductions; a little less than 20% of employees themselves said they were upset about the benefit reductions or cost increases that their employers implemented. Since communications can play an important role in bringing employees on board with health plan changes, what steps can employers take to make implementation as smooth as possible? Here are a few ideas, both for plan-change-targeted and ongoing health plan communications-

- Make sure employees are aware of the reality of health care costs. Research and publicize to employees national health care cost data and cost trends. Be specific: for example, contrast the average cost of a hospital stay or doctor’s office visit today with that of five or 10 years ago. Do the same for the average cost of coverage under various types of health plans.

- Share specific cost data from your company’s health plans. Employees frequently think of the cost of the health plan only in terms of what they pay in premiums, and overlook the employer’s contribution. This narrow view hides the true cost of health care coverage, as well as what the employer pays toward the cost of coverage (which, ideally, employees should see as part of their total compensation package).

- Use concrete examples to illustrate how health plan spending can cut into the ability of the company to make outlays in other areas. For example, determine the approximate dollar amount increase in the company’s health plan contribution one year to the next, and compare it to some other company expense. Is the amount of the increase equal to an employee salary? Stated differently, has health plan spending growth prevented a needed hiring? Use this process to show how health plan cost increases can eliminate raises and bonuses, result in the cancellation of company events, delay the purchase of new equipment, and the like.

- Help employees see that when they use their health benefits astutely, they not only save themselves money, but also keep plan costs down as well. For example, when employees use preferred providers, they receive the highest plan benefit, and the plan pays the lower, negotiated preferred provider rate. If employees have begun to understand the point above-how health plan spending can impact salary increases, staffing, investment in equipment, etc.-this can motivate them to use the plan more wisely.

- Use statistical data to show employees how, generally, unhealthy people use more health care, resulting in higher plan costs. If employees accept this, they’re more likely to try to follow recommended preventive care schedules, attempt to change unhealthy behaviors, and overall aim to become more physically fit.

Employers want employees to be active participants in controlling rising health care costs. To-the-point communications can bring employees on board in this effort, resulting in more manageable costs for employer and employee alike.

January 31, 2010

Benefits to Consider as the Work Force Ages

www35814 — Tue, 19 Jan 2010 19:34:39 +0000

If you thought you looked a little older this morning as you got ready for work, you’re not alone. According to a 2008 Business & Education Resources Study examining shifting workplace demographics, the percentage of employees who are 40+ has increased year after year. In 1990, 40% of the workplace fell into this distinguished category. In 2000, 48% of workers were 40+, and by 2010, 51.4% of U.S. workers will be older than 40. These increases reflect the aging of the 78 million baby boomers, those born between 1946 and 1964.

The increase in life expectancy amplifies the boomer effect. Only 100 years ago, the average life expectancy was 47; compared to 77 years today. As we live longer, we may begin to experience increasing age-related changes in hearing, vision, and even dexterity. The sometimes gradual degeneration of vision or hearing can profoundly affect an individual, both personally and in the workplace.

Normal changes in the aging eye include decreased ability to focus at short range, reduced acuity, a need for better lighting, and reduced contrast sensitivity and depth perception. Left unchecked, such problems can result in expensive errors and even accidents, creating the potential for high costs for employers.

According to the American Society on Aging, 15% of the overall population suffers from some type of hearing loss, with 60% of this group over the age of 55. Hearing loss can be a trickier situation to manage than vision degeneration, because it may go undetected or ignored for longer periods of time. Employees with untreated hearing impairment are more likely to miss some of what is being said in group or one-on-one discussions. Verbal instructions may be misunderstood and not followed correctly, which can result in errors or accidents. Overall workplace information exchange can suffer.

Regular visits to an optometrist or ophthalmologist are the best way to promote healthy eyesight, and a good first source to screen for hearing problems is a general practitioner, with referral to a specialist if appropriate. Most hearing and vision problems are readily correctable through hearing aids or corrective lenses. Be that as it may, many employees delay seeking treatment for hearing or vision loss for financial reasons. Postponing treatment can result in the kinds of workplace costs and risks discussed above.

To encourage employees to take care of these important senses, employers can offer vision and hearing coverages as voluntary benefits. Voluntary benefits are paid in full by the employees who choose to purchase them. However, employees typically save money because the benefits are offered at group discount rates, and often save time by learning about the benefits while they are at work. (Some employers do choose to make a contribution to the coverage.)

Voluntary vision care plans are plentiful, and can offer a variety of choices to employees. Usually, vision care plans cover eye exams and corrective lenses (either eyeglasses or contacts). Plan enhancements could include safety eyewear for individuals in certain industries; laser or Lasik surgery; and polycarbonate lenses for children and active adults.

How a vision benefit is provided also varies according to the plan that is selected. Some plans offer discounted fee services and lenses through a list of exclusive providers or retail outlets; others use a preferred-provider approach and pay a larger or smaller benefit depending on the provider used; and still others pay according to a fee schedule.

Hearing care plan benefits might include discounts on audiologists’ fees, and compensation for hearing aids and related products and services (for example, batteries and cleaning).

Voluntary vision and hearing benefits become ever more valuable with an aging workforce, creating a win-win situation: Employees as well as their employers are likely to benefit from better hearing and vision health in the workplace.

Making Your Voluntary Benefits Program a Success

www35814 — Thu, 31 Dec 2009 16:15:18 +0000

Both employers and employees have much to gain from a solid voluntary benefits program. For employees, being able to enroll in an insurance product through a workplace voluntary benefits program offers them the advantage of group pricing, the convenience of paying through payroll deduction, and perhaps access to insurance that would be difficult to get on an individual basis. For employers, offering a range of voluntary insurance products can help increase employee satisfaction-and along with it loyalty and morale-and make the employer more competitive in attracting and retaining the best employees.

These advantages alone, however, do not ensure that a voluntary benefits program will be a success. Careful planning, including the selection of benefits to offer, choice of vendors and well-crafted communications, are keys to program success.

Bring in the kinds of benefits that employees want and will enroll in. Survey employees as to what types of additional benefits they would participate in if given the opportunity. Depending on your employee demographics, these could include additional life insurance options, long-term care, or even pet insurance. Voluntary benefits enable employees to self-customize an individual benefits package that is uniquely appropriate to them.
Examine gaps in your company's current benefits coverage, and consider how voluntary benefits plans can be used to fill these gaps. For companies that have had to scale back on their regular benefits package, voluntary benefits can be particularly helpful. If your benefits budget is tight and, for example, needs to be dedicated to helping fund medical benefits, offering dental and vision on a voluntary basis gives employees easy and affordable access to these benefits.
After determining which benefits your company would like to extend to employees on a voluntary basis, research appropriate vendors. Look for the product lines vendors offer, whether they have minimum participation requirements, how they conduct enrollment, and their initial and ongoing communications materials. Also examine the vendors' experience and track record working with companies of your size and in your industry. The quality of the vendor, employees' customer service experience with the vendor, and the vendor's ability to smoothly work with your company's human resources department and systems will go a long way in determining the success of your voluntary benefits program.
Though the vendor will supply some communications materials, company communications concerning the program will help to incorporate it into your overall benefits program in the eyes of employees, making it more likely employees will enroll. Consider announcing new voluntary benefits offerings in a communication from top management, which will demonstrate the company's commitment to the program. Make voluntary benefits enrollment a part of your annual enrollment process, and incorporate descriptions and information on voluntary benefits offerings into the communications materials for your core plans.
Work closely with the insurance provider you select for your company's voluntary benefits to enhance communications opportunities and enrollment efforts. This will be particularly important if any of the voluntary benefits have minimum participation requirements. Some voluntary benefits vendors will want to come in for presentations, individual meetings or enrollment sessions, all of which can be very effective in increasing participation in these programs.

Voluntary benefits can be a great add-on to any company's benefits program. Careful planning and consideration of the various issues that can affect participation can increase the chances of program success.

Perceived Value of Benefits Is More Crucial Than You Know

www35814 — Thu, 31 Dec 2009 13:14:57 +0000

In the U.S. today, employee benefits constitute a significant portion of an employee's total compensation. Although past studies revealed that many employees did not fully understand the value of their benefits packages, a 2008 MetLife Employee Benefits Survey showed that more workers are paying extra attention to the value of benefits. The study revealed an increased appetite among employees to receive benefits advice at the workplace. Furthermore, when asked about the significance of benefits in generating workplace loyalty and retention, employees ranked health benefits as the number two factor, only trailing behind the importance of salary/wages. Advancement opportunities and retirement benefits tied for the third most critical factor in retention and loyalty.

According to the most recent (2008) Kaiser Family and Health Research and Education Trust study of employee benefits, the average annual premiums for employer-sponsored health insurance were $12,680 for family coverage, and $4,704 for individual coverage. While these numbers represent a 5% increase over 2007, in a ten-year period the cost increase of family coverage represents a whopping 119%!

As benefits become more expensive to employers, and more valuable to employees, effective communications regarding the benefits are critical. Too often, employee benefits discussions are limited to the annual enrollment period. During this period, many employees' focus will be on what their benefits are costing them, and not on what their employer contributes to the total benefits package. Communications regarding benefits need to continue on a year round basis, and should regularly reinforce the value of the entire benefits package.

Beyond the heavy contribution most companies make toward health insurance, there are other items such as employer contributions to a pension plan or profit sharing plan or matches to a 401(k) plan that need to be emphasized. As the work force ages, companies need to address the wishes of employees who are nearing retirement. The MetLife study points out that in 2007 63% of employers that offered retirement benefits expected the amount of the benefits to increase in the next five years. But in the 2008 study, 73% of employers said they expected this portion of benefits to increase, highlighting the importance employees are placing retirement related benefits.

Other benefits that employers should highlight are: employer premium contributions toward other health and welfare benefits (e.g., life, disability, dental insurance); savings employees realize through purchasing any voluntary benefits at a group rate; the salary-in dollars-represented by paid vacation days; and employer contributions to mandatory benefits, such as Social Security and Medicare. Many employees are unaware of the dollar value of these extra benefits. Helping them understand the worth of such benefits increases employee satisfaction, and hence, retention.

Besides the annual enrollment information meeting, benefits communications should use a multi-media approach throughout the year to explain the value of the benefits package. Options might include: Did-you-know e-mails, colorful placards and posters, printed newsletters, as well as annual total compensation statement that shows the employer's actual outlay-in salary and benefits-for the employee. Information and samples of annual total compensation statements are available on our samples page. All communications should discuss benefits and their value in easy to understand terminology.

Although there is a cost to employers in continually reinforcing the monetary worth of benefits, it is an investment that will pay off in the long run. Employees will feel valued as they gain an understanding of the true worth of their total compensation, thus increasing goodwill between parties. And the carefully communicated value of benefits will help in both recruitment and retention of key personnel.

Get Creative with Benefits Strategies

admin — Mon, 28 Dec 2009 18:09:54 +0000

In an economic downturn, companies can struggle to maintain their existing employee benefits programs, much less think about adding new ones. In times like these, low- and no-cost measures can help a company to keep its benefits programs vibrant and evolving to meet employee needs. Here are some such measures to consider:

A recession may make it impossible to allocate additional company dollars to benefits, but an employer can give employees time and convenience instead, through various strategies-
- Set up a direct deposit program for employee paychecks. Depending on the financial institution used, the direct deposit program may be a bridge to discounted financial services, such as free checking, waived ATM fees, and the like.
- If business needs permit, give employees more control in balancing their work and personal demands through some form of flexible scheduling. This could include flexible hours, summer hours, compressed workweeks and telecommuting. Some employers find that employees on flexible schedules are better performers on the job, because they can more readily attend to personal issues and thus be more focused when at work.
- Investigate adding voluntary benefits. These no-cost-to-the-employer benefits can add a dimension to your benefits programs that can be difficult to achieve through a traditional benefits package. Employees are able to buy benefits at prices more affordable than what is available in the individual market; they have the convenience of payroll deduction; they also have the convenience of benefits being marketed to them, rather than having to seek them out on their own.
- Investigate discount programs. In these programs vendors offer their products and services at a discount to a company’s employees. The vendor’s motivation is access to the employer’s workforce, with the hope that the discount will steer buyers in their direction rather than to their competitors.
- Although many workplaces have gone more casual, others maintain specified dress codes. Employees appreciate when certain days are designated as casual-blue jeans okay-and the atmosphere that can accompany a casual dress day can give the workplace a lift.
Examine existing benefits programs to see what works and what doesn’t, and ask whether dollars should be reallocated to better meet employee needs. For example, are there medical plan options in which few employees participate? A streamlining of the available options can reduce administrative and program costs alike.
Some benefits have multiple uses but may have been promoted narrowly, so that employees may not understand their true value. Employee assistance programs (EAPs), for example, may be perceived as a source of help for substance abuse problems, but EAPs also typically offer a wide range of services many employees could avail themselves of, such as childcare and eldercare referral and assistance with financial issues and debt counseling.
Employees often underestimate the value of their benefits and compensation package, but there’s a good reason for this-many companies neglect to inform employees of what the company spends to make the benefits offerings available. Employees see their own contributions for medical, dental, etc., on their paycheck stubs, but other than during open enrollment-if even then-many companies simply never let employees know what the company pays for employee benefits. Consider distributing “total compensation statements,” which show employees the actual amount the employer is compensating them, through salary, mandated benefits (e.g., Social Security, Medicare), and the company’s employee benefits program.

As the economy improves and benefits budgets become less constricted, these measures can remain in place, continuing to enhance the value of your benefits package in employees’ eyes.

Click on the Contact Us in the main menu in order to discuss how we can help you to communicate with your employees.

myBenefitStatements – show your employees the value of their benefits

MBSteam2009 — Thu, 17 Dec 2009 15:59:36 +0000

This special format is designed to emphasize the value of employee benefits in an easy to use, cost effective, high quality product:

Customized with your company logo
High quality full-color digital printing on 8 ½ x 11” premium paper
Windowed security envelope included at no additional cost
We do the work–minimal data collection required
Value-priced!
The layout, colors, design and pie chart are all pre-set.
The categories of benefits and the actual titles in each of those lines are also pre-set. Additional types of benefits will be combined in the “other benefits” line.
The descriptive text below each benefit category may be edited, as well as the letter from the leadership. No additional notes or definitions are included.
A Summary Management Report and PDFs of each statement for reference purposes are available for an additional fee.

myBenefitStatement – a focus on benefits value

MBSteam2009 — Thu, 17 Dec 2009 15:50:02 +0000

This special format is designed to emphasize the value of employee benefits in an easy to use, cost effective solution:

Customized with the client’s logo
Branded by the insurance broker/consultant
High quality full-color digital printing on 8 ½ x 11” premium paper
Windowed security envelope included at no additional cost
We do the work–minimal data collection required from you and your client
No cost to the client; minimal cost to the broker/consultant
The layout, colors, design and pie chart are all pre-set.
The categories of benefits and the actual titles in each of those lines are also pre-set. If the employer has additional types of benefits, they will be combined in the “other benefits” line.
The descriptive text below each benefit category may be edited, as well as the letter from the leadership. No additional notes or definitions are included.
A Summary Management Report and PDFs of each statement for reference purposes are available for an additional fee.

Introducing Open Enrollment Forms

MBSteam2009 — Wed, 16 Dec 2009 18:27:55 +0000

You know myBenefitStatements for creating high quality, easy to read, total compensation statements. Now we have created easy to follow benefits enrollment forms for your next open enrollment period.

Recent studies show that many employees are confused or frustrated while selecting their benefits (Employee Benefit News, April 1, 2009, p. 17). In some cases self-service online enrollment has become “no service.” Use our open enrollment forms in conjunction with employee meetings/seminars to ensure your employees make informed benefits decisions.

Our new benefits enrollment forms are…

Customizable to show your benefit offerings
Easy to understand
Full-color—enlisting your employees’ attention
Easy to complete and return on the spot during elections meetings

With more than 20 years of employee communications experience, myBenefitStatements is your skilled partner. We collaborate with hundreds of brokers and employers all over the country to create effective employee communications tools. Hard copy, easy to complete forms from myBenefitStatements are one of our specialties.

To see samples and request a price quote, visit www.myBenefitStatements.com or contact Sarah Fakan at (800) 865-4485 ext. 104. If email is more convenient, please send us an email at Info@myBenefitStatments.com

Open Enrollment forms from myBenefitStatements make it easier for you!

MBSteam2009 — Fri, 13 Nov 2009 16:39:42 +0000

You have come to know myBenefitStatements for creating high quality – easy to read – total compensation statements. Using these same ideas, we have created straightforward, easy to complete benefits enrollment forms for your clients’ next open enrollment period.

In a recent study, employers ranked effective communications during open enrollment as their number one challenge, as employees become increasingly engaged consumers of healthcare and other employer benefits.

Our new enrollment forms are…

Customized to show your benefit offerings
Personalized for each employee
Easy to understand and complete
Full-color – catches employees’ attention
Hardcopy – encourages employees to sign and return on the spot during elections meetings
With more than 20 years employee communications experience, myBenefitStatements is a skilled partner.

While the use and popularity of the web has increased dramatically, many employers prefer to use hard copy open enrollment forms. Employers and employees alike face an ever-increasing complex myriad of benefit options leaving many employers to look for a combination of tools that create a more tangible approach. Hard copy, easy to complete forms from myBenefitStatements are one of our specialties.

myBenefitStatements collaborates with hundreds of brokers and employers all over the country to create effective employee communication tools. Employees will find our customized enrollment forms appealing and easy to understand and complete.

To see samples of our enrollment products visit http://www.mybenefitstatements.com/samples . If you prefer to see a hard copy sample…give us a call and request a free supply of benefits enrollment forms to show your clients. Please e-mail or call Sarah Fakan, Sales & Marketing Director, at (800) 865-4485 ext. 104 or Info@myBenefitStatements.com.

9 Ways Benefit Statements Can Help

MBSteam2009 — Fri, 13 Nov 2009 15:35:39 +0000

Strengthen your client relationships and build loyalty by providing employee benefit statements

Employers are spending hundreds of thousands of dollars on benefits, but their employees aren’t grasping the value of these benefits.

Total compensation statements show employees the full value of their compensation and can be a highly effective communication tool.

Contact us today for a printed supply of “9 Ways Benefit Statements Can Help!”, a brochure that shows your clients how benefit statements can work for them. Call (800) 865-4485 or email info@myBenefitStatements.com.

myBenefitstatements is the right choice!

admin — Tue, 22 Sep 2009 21:04:26 +0000

Use myBenefitStatements to… Boost morale Show each employee a picture of their total compensation Connect with each employee using personalized communications Reinforce employees’ sense of value to the company Related posts:myBenefitStatements is the right choice! Open Enrollment forms from myBenefitStatements make it easier for you! You’ve got to communicate! Introducing Open Enrollment Forms Communications Are [...] Related posts:

Clearly Communicate with Employees

admin — Thu, 17 Sep 2009 16:50:42 +0000

Over 50% of your workforce don’t understand all the benefits offered and the value of their total compensation (wages + benefits)! You can use benefit statements as a effective employee communication tool.

Employee communication is critical. You can communicate the value of your benefits program through attractive and affordable benefit statements showing your employee the value of their total compensation in an easy-to-understand format.

Your customized employee benefit statements can be presented in a 1-page, newsletter style or tri-fold format. Whatever your needs – myBenefitStatements has the solution!

Open enrollment election and confirmation forms are also available.

Having talent retention issues?

admin — Thu, 17 Sep 2009 16:47:38 +0000

If you’re having problems:

Attracting new employees
Communicating total compensation to your employees
Improving employee morale
Reducing employee turnover
Retaining the best employees (employee retention)
Providing additional benefits at low cost to your employees

Then benefit statements are right for you! You’re spending many thousands of dollars providing your employees with statutory and fringe benefits – shouldn’t you be getting your money’s worth?

You Choose How to Utilize Our Services

admin — Wed, 16 Sep 2009 14:46:15 +0000

Total compensation statements from myBenefitStatements are fully customizable for each of your client's unique needs.

Treat your clients to benefit statements as a value-added feature.
Provide myBenefitStatements services to your clients, sharing the cost or allowing them to pay our reasonable fees.
Add your premium to our low-cost services for increased revenue for your company.

Take a look our sample statements and then request a customized employee benefit statements quote.

myBenefitStatements has been assisting employers and broker/agents for over twenty years with their benefit statement needs. We are committed to customer satisfaction and our goal is to create a long-term relationship to help you strategically be more successful.

Why Total Compensation Statements?

admin — Wed, 16 Sep 2009 13:40:45 +0000

Do your clients’ employees have a total compensation statement in their hands so they can compare their benefits with the “better compensation” they believe is available elsewhere?

Will their employees leave because of a slightly higher wage offered elsewhere, accepting an inferior benefits package because they don’t know the value of the benefits they already receive?

Offering your clients customized benefit statements through myBenefitStatements will help your clients educate their employees to the true cost they’re paying for fringe benefits.

You can provide your employer groups with personalized employee benefit statements, which will:

Improve morale
Decrease pressure for higher wages
Impact their bottom line

Therefore, you can see this is a win-win situation for everyone!

6 Reasons – printed benefit statements are a great tool!

admin — Wed, 16 Sep 2009 13:12:25 +0000

Partnering with BusinessPlans, Inc. (BPI) – myBenefitStatements provides you with a customized employee benefits statement program that helps you communicate the value of your company's benefits attractively and affordably.

Printed employee benefit statements are simple to use and easy to understand for all employees.

Employees see high value in a full color heavy-weight paper statement they can hold in their hands.

A hard copy statement arriving in the mail makes a unique and significant impact.

A printed statement provides an easy to read summary the employee can readily show to family members.

A quality full color statement is likely to be viewed more than once. Many employees save their statements from year to year.

Printed total compensation statements provide an increased level of confidentiality as each is delivered via the mail service or in person to the employee in a security envelope.