Employers have been missing an opportunity to look – and act – like heroes to their employees by ensuring they know enough about what’s on their benefits plates to utilize them to the fullest extent possible.
Employees don’t know what they don’t know, after all, and if they’re not engaged and educated, they lose: Canadian workers reportedly lose $3 billion annually because they’re not opting into key benefits.
And employees aren’t the only losers. The business is hurt too, as over the long-term, morale and productivity are put at risk.
Consider some of the benefits that may be among the most underutilized or misunderstood:
Employee Assistance Programs
Typically part of extended health care plans, Employee Assistance Programs (EAPs) are a terrific resource to help employees deal with personal problems or work-related issues that might impact their job performance, health or emotional well-being. EAP services are free to employees and strictly confidential.
Even though they have grown in popularity in recent years and are an asset in boosting worker productivity, they tend to be underused. According to the 2015 Sanofi Canada Healthcare Survey, only 11 percent of employees “definitely” tapped into their EAP services; 23 percent said they “kind of” or sometimes did.
Employer Pension Plans
Two common types of pension plans are defined benefits and defined contribution. The defined contribution plan is increasingly replacing the defined benefits plan, as the latter is more expensive and complicated to administer.
For defined benefit plans, both employer and employee typically contribute and share the liability. The future benefit is based on a formula incorporating years of service, salary and a pension factor; this plan is designed to reward employee tenure. Defined contribution plans are less costly to administer and the employer has no funding liability. What’s defined is the amount of contributions, usually a percentage of income, and employees bear the market risk.
Both have advantages that make them worth enrolling in – especially if positioned as an integral part of the employee’s total compensation. If these types of programs are made available to employees, it’s a real win to ensure retention – but only if the employee knows that you are offering it!
Group RRSPs and TSFAs
With employer sponsored Registered Retirement Savings Plans (RRSPs) or Tax Free Savings Accounts (TFSAs) where the employer offers a match, employers not only contribute each time the employee does, but in some cases they match employee contributions up to a set limit. Employees that don’t enroll are essentially turning down free money. And as the employer, you lose an opportunity to show employees just how much you are doing for them.
Overlapping insurance coverage
Families that have separate health and dental plans may not think about comparing their plans to determine where the coverage overlaps. Typically, individual plans may cover just a portion of your claims for dental surgery or prescription drugs. If encouraged to take a closer look, though, they’ll find opportunities to make claims for their partners and children – and in the process end up with nearly 100 percent coverage. Imagine how your employees will feel if they know you are trying to save them money.
Helping employees understand the ins and outs of their benefits will ultimately create a business advantage for you. Workers who know they are being well-served will serve you well in the process and stay with you in the long run.
