Benefits to Consider as the Work Force Ages

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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.

Contact Us to discuss how we can help you to communicate with your employees.

Making Your Voluntary Benefits Program a Success

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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.

Contact Us to discuss how we can help you to communicate with your employees.

Perceived Value of Benefits Is More Crucial Than You Know

Categories - From Our Newsletter, News

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.

Contact Us discuss how we can help you to communicate with your employees.

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