More Than Half of Employer Healthcare Spending Went To Waste Due To “Employee Confusion.”

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Featured More Than Half of Employer Healthcare Spending Went To Waste Due To “Employee Confusion.”

No matter how direct HR professionals try to communicate, it’s been proven difficult to guarantee employees are aware of the benefits their employers are offering them. Of course, this makes sense given the number of distractions most workers are facing in the day. Unfortunately, however, this can cost employers a lot.

A study performed by benefits software developer Jellyvision found company leaders report 53% of their yearly spending on healthcare was wasted as a result of employee confusion.

This enormous waste of money shows just how much could be saved by ensuring employees are actually aware of the benefits that are being offered to them.

Many employers suffer from simply throwing benefit information out on their employee intranet and emailing employees; however, this technique more often than not leaves many employees uninformed of the benefits they have available. 

The first step for HR is to examine how employees typically communicate and use these channels to inform them of changes to their benefits. This could take the form of providing employee surveys or tracking what channels receive high levels of traffic.

The most effective means of communication can vary considerably depending on the demographic and positions of employees; however, providing a distinct channel of communication for every population of employees would naturally be cost-prohibitive. Instead, employers would be well served to look for trends amongst their workforce to develop profiles that represent the largest components of their workforce.

Another factor is to keep things concise and fun. Employees are bombarded with information from countless sources each and every day. So, it is crucial to make communication easy for employees to understand and act on. To do this, first, make sure that email subject lines are short and easy to understand and make sure that information inside is communicated clearly in as plain of English as it can be.

Also, consider keeping things fresh and fun with some eye-catching visuals like GIFs. Adding a bit of humor and something to attract the eye can go a long way to convincing employees to read on.

Finally, make sure not to bombard employees with frequent updates and changes that leave them confused and overwhelmed. This can cause otherwise promising programs to fail. Try to avoid adding new programs several times a year. In fact, try to avoid unnecessarily introducing a change every year. Instead, make sure employees understand the ones they do have.

You can avoid this altogether by staying updated with fair chance hiring compliance. Read our free guide Adverse Action Notice Protocols in Compliance With FCRA to learn more.