Starting a new job is a big step, and for many younger employees, it’s their first experience needing to learn the ins and outs of their employee benefits.
Understanding important elements like health insurance coverage, retirement plans, and other important benefits offerings can feel like learning a completely new language for some.
However, benefits are a key part of an employee’s overall compensation. When understood and adminestered correctly, they can provide valuable support for an employee’s (and their family’s) long-term health, financial well-being, and peace of mind.
Still, without the right guidance, younger employees may miss the full value of what’s being offered or not make optimal decisions based on their situation. Luckily, employers can take certain steps to help educate their younger workforce about their options.
Why Younger Employees Often Need Help Navigating Their Benefits Options
Below are some of the primary reasons why businesses should prioritize helping their younger employees better understand their benefits packages:
- Lack of Experience – It’s important to remember that for many younger employees, this might be their first experience working for an employer that has offered them a benefits package. Because of this, they may not even know how the benefits enrollment process works or how premiums are calculated. They may also need more help than others when recognizing the difference between health insurance plans, understanding deductibles and copays, or making decisions about retirement contributions.
- Too Many Options to Choose From – Many employer benefits packages offer a wide array of choices. While this variety is intended to support the diverse needs of all employees, it can also create a sense of “information overload” for younger employees new to navigating these choices. Without the right training or guidance, they may struggle to identify the most effective options for them and their families.
- Reduced Benefit Valuation – Younger employees, especially those who have just started their careers, tend to have a different perspective on benefits offerings than more experienced professionals. They may be more focused on their immediate financial needs and more concerned with take-home pay than with long-term financial benefits like retirement savings or disability coverage. This lack of accurate valuation can lead to poor decision-making or even increase the likelihood of staff turnover.
Catering Your Benefits Education Strategy for Younger Generations
To effectively help younger employees stay more informed regarding their benefits, here are some key approaches to consider:
Simplify and Summarize
Younger workers often appreciate quick, concise, and easily digestible information. Instead of only providing them with lengthy benefits documentation, typically containing a lot of industry terminology, focus on providing them with clear, straightforward communication. Think about how you can present key plan features in a way that’s easy to understand.
A great way to do this is to provide summaries of key plan features or use visuals like infographics or flowcharts to illustrate benefit concepts. For example, a one-page summary of each health insurance plan option, outlining the key differences in coverage and costs, can be a valuable resource they can use when first onboarding and during open enrollment periods.
Embrace Digital Tools
Today’s younger generations are digital natives, meaning they’re incredibly comfortable with technology. Leverage this interest by offering them digital training resources.
Benefits Administration (BenAdmin) platforms can be used to provide employees with self-service access to their benefits information, as well as a number of decision-support tools.
Best-of-breed BenAdmin platforms often provide tools that offer personalized recommendations based on an employee’s age, lifestyle, and custom requirements. They’ll also provide interactive calculators that employees can use to estimate their healthcare costs under different plans.
Incorporate Feedback to Improve Education Strategies
One of the best ways to ensure that your benefits education program is effective is to gather regular feedback from your employees. Surveys can be a valuable tool for this, allowing you to ask specific questions about your staff’s ability to understand all their benefits and any preferences they may have for getting more up-to-speed with their plan options.
Take the time to analyze the survey results to identify any knowledge gaps, and use this information to refine your strategies and adjust your approach.
Providing More Personalized Benefits Support
While online resources and digital tools are incredibly valuable, sometimes employees need an extra level of personalized support. Benefits call centers can step in to provide this and give employees a direct line to licensed insurance professionals who can answer questions, clarify confusing details, and even help with the enrollment process.
Many benefits call centers offer support through email and online chat, making it even easier for employees to connect in a way that works best for them. This can be incredibly valuable and even allow employees to get the information they need outside of standard work hours.
Help Your Employees Make Smarter Benefits Decisions
By taking the time to train younger employees on how to get the most value out of their benefits options, you can make sure your employees feel more satisfied with their decisions and help build a happier and more loyal workforce.
Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm (https://getebm.com) a leading provider of employee benefits solutions, Frank has built the business by bridging the gap between insurance and technology-driven solutions for brokers, consultants, carriers, and employers nationwide.
