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What benefits do employees want?
Part of the strategic planning process for employee benefits is to develop a clear understanding of the needs of current and potential employees.
With the aging of the population and other demographic changes, the needs of the workforce have grown increasingly diverse. This is exacerbated by the fact that each employer differs in the demographic makeup of their work force. While these issues can contribute to differences in the types and levels of benefits that organizations offer, there are some predictable differences that can be based on factors such as age and marital status. Truly understanding current and potential employee needs can be a complex task, but there are steps that may be taken to assist in this process.
Benefit questionnaires. You can use benefit questionnaires to survey employee preferences within the organization. This questionnaire does not need to be complex, but should ask for honest, candid feedback.
For instance:
- You could list the benefits your organization is considering offering. Then ask employees to rank each benefit on a scale of 1-10. Leave a space for “other” so that your employees can fill in benefits that you may have overlooked.
- You should ask for the employee's age, gender, marital status, family size, availability of benefits through their spouse, and earnings information. This information will help you to determine if particular employee groups have predictable preferences.
Then compare the desired benefits package with the present benefits package using the results of the questionnaire. Employee needs that are currently not covered may call for additional benefits to be introduced in your benefits package. But overlapping benefits that provide more protection than necessary are a waste of resources.
Two-Income Families…
As the cost of benefits continues to escalate, employers are reexamining their financial commitment to providing dependent coverage. When both members of the family work, they're often eligible under each other's benefit program. In these circumstances, employees often will select the plans that provide the best coverage for the least cost, often "opting out" of coverage that is available to them through their own employer and enrolling on their spouse's plan if it is more generous. The employer who offers less attractive benefits saves on their costs when this occurs, and the employer providing the most generous plan assumes additional risk and expense.
Memory Jogger
Employee benefit questionnaires should ask about: