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According to the "2007 Job Satisfaction Survey Report," by the Society of Human Resource Management, employees say compensation and benefits are the top two contributors to job satisfaction. Studies show companies that don't do a good job communicating the value of their rich benefit programs have a 17% average turnover rate among top-performing employees. Companies that do a comprehensive job communicating the value of less rich benefit packages, however, have a 12% average turnover rate.1
Employees need one-on-one, personal benefits education at least once a year, if not more often.2 Most employers don't have the resources these days to deliver effective benefits education, and your agency may not either. Yet delivering benefits education services can make you a more valuable benefits partner and strengthen your client relationships. It's in your best interest to get help from a voluntary benefits carrier that can provide a team of benefit representatives to conduct one-on-one, personal benefits education.
Market the Value of Benefits Education to Clients
Many brokers are used to the traditional model of benefits communication, which consists of holding group meetings and passing out packets. We're seeing more brokers and employers, however, who recognize the value that benefits education brings to employers and employees. As Ron Neyer and Patrick T. Leary write for LIMRA International, "decision-making support for both core and voluntary benefits can help employees choose the coverage that fits their individual lifestyles and budgets. Employees want to meet with benefits representatives, either annually or as needed."3
Your clients are paying more to fund their benefits program, and you can bet they're not getting enough credit for the costs they bear. Employers realize employees do not have a good understanding about company-provided benefits, what they're worth, and what the employer contributes. "Open enrollment is a much more active process than it was just a few years ago," said Ted Nussbaum, director, group and healthcare, North America, for Watson Wyatt Worldwide. "With some employers making significant changes to their benefit offerings, employees will need to pay closer attention to their options than ever before, and that will require time to ensure they receive the benefits they want to next year."4 Unfortunately, however, most don't have the resources, staff, and time to conduct a comprehensive benefits communication effort.
Here's where you can help. Bring your clients a solution -- effective benefits communication. Let them know that you can help their employees:
o Learn about the entire benefits program, including core and voluntary benefits;o Understand the costs the employer pays for benefits and why employees have to share more of those costs; and
o Determine the appropriate benefits to meet their coverage needs.
Last fall, we enrolled a regional hospital account that was losing employees to another large hospital system in the area. This account acknowledged the importance of having a benefits representative meet individually with each employee, but it didn't have the staff or the expertise to do it. We explained how our team of benefit representatives could do this for them, and the CEO liked the idea of having a third party conduct benefits education meetings with each employee to explain the hospital's benefits package and its value. He felt that this type of information coming from a third party would carry more credibility and be better received. In other words, there was merit in having an outside person tell employees how much the hospital invests in employees and their families.
After the enrollment, the hospital was pleased with the effect on employee morale and decided to offer personal education sessions every year. The employees liked having a benefits representative walk them through their benefits, explain how much they cost and why, and help them determine what to purchase based on their situation. The sessions truly made a difference for employees and for the hospital.
Overall, the goal of effective benefits education is twofold:
1. Help your clients get mileage out of their benefits program by educating employees on the value of the benefits they receive and the support their employer provides for quality benefits. Employees who are satisfied with their benefits may be less likely to move to another company. In addition, effective benefits communication can have a positive effect on employee morale and could help better manage employee turnover.
2. Help employees better understand their coverage and select the appropriate coverage to meet their needs.
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Team Up With a Quality Voluntary Benefits Carrier
To bring benefits communication capabilities to your agency would require additional overhead in staffing, enrollment technology, etc. Doing it yourself may be a high -- and unnecessary -- cost. Instead, consider partnering with a voluntary benefits carrier that specializes in this much-needed service. Use the carrier's resources and expertise to add to your agency's portfolio. The key, however, is to find the right carrier and know what you're getting. Here's what it should offer:
o A local team of trained benefit representatives to conduct the initial enrollment, new hire enrollments, and annual re-enrollments.
o A national team of trained benefit representatives for enrollments in multiple states and locations. Consistency in professionalism and communications is critical.
o The ability to cover different enrollment locations and different work shifts.
o Specialized training programs to make sure benefit representatives are qualified and trained to conduct core and voluntary benefits enrollments.
o A system that monitors the quality of the sales process. You want to make sure employees consider the right amount of coverage and aren't oversold.
Ask for references, and check them out. Choose a benefits education team you can trust to take good care of your clients and their employees -- one that reflects well on your agency.
More and more traditional brokers are beginning to understand the value of personal benefits education sessions instead of solely offering group meetings. They're seeing how benefits education is much more than selling voluntary benefits; it's a powerful way to help clients and employees get the most out of their benefits investment. Having a team of benefit representatives to educate employees on their core and voluntary benefits can give your agency a tremendous competitive advantage. Everyone wins because when you help clients strengthen their business, you'll also strengthen your client relationships.
Blake Rogers is a territory sales manager for Colonial Life's Tennessee sales territory. Before joining Colonial Life in 2006, he had more than 15 years of benefits industry experience in sales and sales management roles. Under Mr. Rogers' leadership, Colonial Life's Tennessee territory has become one of the company's top performers. His main responsibilities are to recruit and train new district managers and personally show them how to market Colonial Life's products, programs, and services to brokers and employers.
Footnotes:1. "Communication Plays Critical Role in Improving Retention Power of Health Benefits," Watson Wyatt Worldwide, Feb. 23, 2005.
2. "Industry Currents," produced by Employee Benefits News, Oct. 29, 2007.
3. "Navigating the Workplace Benefits Landscape," Ron Neyer and Patrick T. Leary, LIMRA International, 2006.
4. "Watson Wyatt Identifies Major Benefit Trends During Open Enrollment Season," Ted Nussbaum, director, group and healthcare, North America, Watson Wyatt Worldwide, September 2007.
