HOW TO CLEARLY COMMUNICATE EMPLOYEE BENEFITS

Transcription

1 HOW TO CLEARLY COMMUNICATE EMPLOYEE BENEFITS DISCLAIMER: The principles and suggestions in this handout and the HOW TO CLEARLY COMMUNICATE EMPLOYEE BENEFITS webinar are presented to apply to diverse personal and company situations. These materials and the overall seminar are for general informational and educational purposes only. The materials and the seminar, in general, are presented with the understanding that CareerTrack is not engaged in rendering legal advice. You should always consult an attorney with any legal issues CareerTrack, a division of PARK University Enterprises, Inc. Registered U.S. Patent & Trademark Office and Canadian Trade-Marks office. Except for the inclusion of brief quotations in a review, no part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from PARK University Enterprises, Inc. EEB1308

2 ONE Benefits Communication Basics Educating employees about their choices can help them avoid confusion and needless worry about their benefits decisions. Clear communication about benefits will help employees make good decisions. Employment-Based Benefits In general, benefits fall into three categories: Voluntary Benefits Provided voluntarily by businesses Supported by government with favorable tax treatment to both employers and workers Retirement plans Health insurance Mandatory Benefits Mandatory under state or federal law Social Security Unemployment insurance Worker s Compensation Family and Medical Leave Individual Programs Supported by government with favorable tax treatment Individual Retirement Accounts Favorable taxation of life insurance contracts 2

3 ONE Clear Communication of Benefits is Critical! Cigna Corp. v. Amara Healthcare Reform How Can You Ensure Your Employees Get the Message on Employee Benefits? Communicate Your employees should be made aware of the benefits you offer early and often Educate Companies of all sizes should base benefits communication on the complexity of your plan Simplify Communicate in language your employees understand Put it in writing All information about the benefits you offer should be in writing Keep it relevant and timely Don t overwhelm your employees. Communicate information as the time approaches for program participation Revisit Periodically revisit details and costs associated with your benefits packages so that employees understand what is available to them Ask for feedback Employee opinion surveys are an excellent way to measure the level of understanding that employees have about the benefits you provide Go online If your company uses an intranet site, it can serve as a way to communicate benefits information Offer assistance Providing a direct number for employees to call when they have questions is a part of an effective benefits communications plan. 3

4 TWO Strategies for Year-Round Benefits Communication If there is a secret to communicating the value of benefits, it lies in starting an education campaign long before enrollment begins -- and continuing it long after it ends. Don t get caught hunting for participants only during enrollment season. It s a year-round process. Highly effective benefits communications get the right message to the right employees. 60% 60% of employees don t understand which benefits options best fits their needs. A Tailored Approach to Benefits Communication Design Today s work force comprises three generations of employees: Baby Boomers, born from Generation X, born from Generation Y, born after 1980 Use technology to get the message out to employees: 4

5 TWO Essential Elements of Every Benefits Communication Regular and timely Clear, concise, and credible Multiple channels Consistent In context Print Communication Newsletters Enrollment materials Summary Plan Descriptions Posters Electronic Communication Intranet Online enrollment Social media Paycheck stuffers Letters to home Postcards In-person Communication Meetings One-on-one Third party benefits communication 5

6 THREE Plain Language Communication In a 1946 essay, Politics and the English Language, George Orwell spelled out what he considered to be the rules on clear writing. His advice is still valid today. Never use a metaphor, simile, or other figure of speech Never use a long word when a short word will do If it is possible to cut a word out, always cut it out Never use the passive when you can use the active Never use a foreign phrase, a scientific word, or a jargon word if you can think of an everyday English equivalent Break any of these rules sooner than say anything outright barbarous Don t Say Do Say Don t Say Do Say Acronyms Avoid confusion just spell it out Consequently/As a result/as such Biweekly Biannual Semi-weekly Because Every other week Every other year Twice a week Rationale Regarding Suffering an earnings loss Under separate cover You must/you need to Reason About Earning less Mailed separately It is important that you Semi-annual Please be aware Twice a year We have important information for you Formularies Utilize Less expensive generic drugs Use 6

7 FOUR Healthcare Reform and Benefits Communication Beginning on the first day of an open enrollment period on or after September 23, 2013, employers need to take some extra steps to comply with new regulations required by the Patient Protection and Affordable Care Act. Summary of Benefits Coverage (SBC) under the Affordable Care Act: Must be included with open enrollment materials Must be presented in a uniformed format Must not be longer than four pages (double-sided) Must use a minimum of a 12-point font size Must be presented in a culturally and linguistically appropriate manner. 7 SBC s must include: Uniform definitions of standard insurance and medical plans Descriptions of coverage, including cost sharing for each of the essential benefits offered and any other benefits required Exceptions, reductions, and coverage provisions Out-of-pocket obligations including co-pays, deductibles, and coinsurance Renewability and coverage provisions A coverage facts label with examples illustrating common benefits scenarios Whether the plan offered is considered minimum essential coverage as defined by healthcare reform A statement that the plan sponsor ensures its share of the total allowed costs of benefits provided under the plan or coverage is not less than 80%

8 FIVE How Your Company Benefits From Effective Communication Employers that provide and market comprehensive benefits packages: Improve employee performance Improve employee productivity Attract new workers Increase employee job satisfaction Today s businesses are continually challenged to provide the reasons why employees should consider their benefits packages valuable. Good employee benefits are key to employee satisfaction and retention. The true value of employee benefits in the workplace is astounding. Benefits not only can empower employees and their families to lead better lives at work and home, but they can also help employers: Cut costs Increase productivity Retain talent Influence company culture At its most basic, an employee benefits package represents a company s commitment to provide a level of income security to its active workers, disabled workers, retirees and their families. Also, by providing access to certain services, it shows a company cares about trying to increase its employees standards of living. Communicating cutbacks No one wants to be the bearer of bad news. But sometimes it can t be avoided. Communicating the true cost of benefits The decision to make cutbacks is a business decision 8