Employee Benefits

Improve Employee Understanding of Benefit Plans

Man with questions

The Society for Human Resource Management (SHRM) reports that about 40 percent of employees at American businesses do not understand their benefits. In a survey of human resource professionals conducted by ADP Inc. in 2011, 80 percent of the respondents acknowledged the importance of employees understanding their benefit choices. However, a surprising number of businesses do not allocate budget funds to support benefit communication efforts.

  •  36 percent of large companies do not budget for HR to communicate benefit options
  •  66 percent of midsize firms do not allocate funds for benefits communication

Over the past five years, employees and their families have assumed more responsibility for managing their health care expenses. They need accurate information about their benefit options to select the options that best meets their needs, as well as those of their dependents. And after enrolling in these plans, employees need to understand the features, including deductibles, plan maximums, prerequisites and covered services, to use their benefits effectively.

Review this SHRM article on understanding benefit options, and share your feedback.