What are the most common employee benefits design mistakes?

Prominent employee benefits design errors encompass inadequate communication and comprehension among employees, the provision of a one-size-fits-all benefits package that does not account for the diverse needs of the workforce, neglecting periodic reviews and updates of benefits to maintain competitiveness, and a failure to align benefits with the overarching strategic objectives of the organization. Furthermore, some enterprises tend to underestimate the significance of wellness programs and initiatives aimed at promoting a healthy work-life balance, potentially leading to diminished employee satisfaction and retention rates.

A few key factors to designing the right plan and alignment of the right vendors are: - demographics such as income, genders, ethnicity, average ages - location of employees. Rural areas or large metropolitan areas. - nature of local hospital system, monopolistic or competitive landscape.

Worker safety is key to ultimate job performance. Lack of it results fear of being an injury statistic and that brings stress on the other hand.

I often find that with more established companies, there is a tendency to keep things “the way they’ve always been.” As baby boomers continue to retire by the thousands, and the workforce becomes generally younger, employees want to feel like they are in control of their benefit package. Employers that foster a culture of collaboration and open communication tend to have much more loyal employees and higher employee morale. This typically leads to lower turnover, which is vital to a company’s stability.

I agree with this. However, it’s often a missed opportunity. As they say, you miss the shots you don’t take. As HR leaders and CFO’s should know, the employees respond based on their own perception, this could be upbringing, could be other external factors such as climate, food availability, competency, education levels. These all need to be dialed in.

Trying to do TOO MUCH complicated communication in a single meeting is a MASSIVE mistake. Keep it simple. Be direct. Keep it short. REINFORCE CONSTANTLY.

Benefits communication and enrollment strategies are often a big miss. Technology platforms. Education level. Competency levels. The need for bilingual communication. Mixture of virtual and in person. Proper timing. Thoughtful nurturing.

Most employers have no idea what their competitors or similar types of companies are offering to to attract employees. This means they are either offering too rich benefits and over spending unnecessarily or they are not offering rich enough benefits which can lead to losing top talent to the market. Either way a good bench mark should allow them to know where they stand.

Use current data for benchmarking your benefit program…using 2 year old self-reported market info isn’t helpful to chart your course for the coming year. Benchmarking can be helpful to measure your own organization’s benefit program compared to your industry peers, groups of similar size, and groups within your geographic markets, but it’s also important to look at how all of your benefit program components have evolved (or not) over time.

In my experience, benchmarking should be an ongoing practice conducted by both the benefits broker and HR team. Due to changing economic, labor, and social conditions, employers may quickly find themselves undesirable to job candidates and current employees if they are not offering a benefits package that is in line with that industry. Different industries require more robust and comprehensive benefits than others. Maintaining a pulse on the market through benchmarking will ensure a company stays relevant and attractive.

Benefits benchmarking is a crucial process that helps organizations ensure they are offering competitive and attractive benefits packages to their employees. Competitive benefits packages can improve employee satisfaction and morale. When employees feel that their benefits are fair and competitive, they are more likely to be highly engaged in their work and committed to their organization for longer, reducing attrition.

C-Suite thinking & philosophy is the construct to reveal intent to the heart of a benefits program. For some it’s about compliance. Do what we have to do, not spend a dollar more. Those are prevalent. For others it’s about building a culture of care, providing benefits that are decent, well designed, but affordable for the employer and employee. The last bucket is the employers who acknowledge benefits as a competitive advantage. Combine that with C Suite benchstrength of a more progressive approach. Now you achieve more than you could imagine.

Failing to communicate the results - to senior leadership, to membership, to the wider community of your peers...is just as important - don't just evaluate, but share your findings!

The big swing & miss is exit interviews. A must question is how did we do on the benefits. HR leaders must put their brokers/consultants to the test on this. Tweaks are key along the journey to assure that the wagon makes it all the way.

Once benefit purpose is established, design should follow to reach objectives. Then the messaging of the plan for potential hires and current staff should be established that clarifies the corporate objectives and purpose of plan choices made. If either the wrong design is chosen, or there is a failure to communicate an appropriate one, it almost amounts to the same thing, in terms of effectiveness.