The Many “Benefits” of Benefit Statements
Whether you’re an expert or new to providing Benefit Statements, do you really know the full value that Benefit Statements provide? Benefit Statements are more than a document with dollar values capturing that “bigger picture.” Benefit Statements can be used to help employees understand more about their benefits, emphasize what benefits are available, and much more.
One of the most important uses of a Benefit Statement is building a relationship with your employees. Benefit Statements are personalized which makes employees feel more connected to the employer as an individual outside of the team. Bringing attention to benefit descriptions and what miscellaneous costs an employer provides outside of pay bridges that communication gap between an employer and employee. Employees begin to understand their benefits better which builds trust in their employer. This leads to improved work ethic and productivity, increased motivation, more dedication and loyalty, and reduces employee turnover.
Benefit Statements can also be used as a benefits tool. Why show only enrolled benefits? Use Benefit Statements to show employees what benefits they are missing out on! Summary Plan Descriptions are packed with information and details about benefits, but are your employees really reading them? Benefit Statements can be used to easily and quickly describe and emphasize benefits. Benefit descriptions can also help highlight any special benefits your company/organization offers.
Benefit Statements can be used at the end of a fiscal calendar year to show everything that was paid out for the prior year. They can also be used the beginning of a fiscal calendar year to highlight merit increases or raises and annually project their current elections. Use Benefit Statements to promote open enrollment. Employees that receive Benefit Statements shortly before open enrollment are more inclined to enroll in more benefits because it’s fresh in their minds.
Last but not least, Benefit Statements can be used to help plan employees’ futures. Include information about retirement plans to help employees learn about their options. Showing both employee and employer contributions opens employees’ eyes to the total being contributed into their account. Benefit Statements can feature retirement projections to help employees understand the value of contributing to their retirement plan now instead of putting those contributions to a later date.