Building a Culture of Cost Awareness and Responsibility in Employee Benefits

As a business leader, you play a crucial role in shaping the culture of your organization. Too often the benefits part of the culture is forgotten about, pushed to the side, or delegated entirely to someone else.A key part of this culture involves how your team manages and thinks about employee benefits and their costs.

It's not just about choosing a plan and forgetting about it until next year. Then when next year comes doing a rinse and repeat. In fact, your employees likely spend less time ANNUALLY on their benefits, then they do watching an episode of Yellowstone.

The culture around benefits is about creating an ongoing conversation and understanding around these costs—because, let's face it, they affect everyone in the company.

I mention this all the time, you hate insurance. I get it. You've been taught (hopefully inadvertently I hope) by our industry that you shouldn't like.

Understanding the Impact

Imagine managing your business’s benefit costs like managing a baseball team. Every decision, from which players to put on the field to how to manage the game, affects the team's performance and outcome. Similarly, each choice related to employee benefits affects the financial health of your company and the well-being of your team members. How can you coach your employees to make smart, responsible decisions about their benefits?

Steps to Cultivate Awareness

1. Transparent Communication: Start with being open about the costs. When employees understand what benefits really cost, they start seeing their choices through the lens of responsibility. Consider monthly meetings (or some form of communication: text, email, mail, etc) where you share updates on how to use benefits and potential costs for services like mental health or telehealth.
2. Employee Education: Sometimes, people see benefits as just another perk without understanding the nuances. Host regular training sessions, or create educational videos, that cover not only what benefits are available but how using them wisely can affect everyone’s premiums and the company's bottom line.
3. Incentives for Cost-Effective Choices: Encourage employees to use preventative services and generic drugs, which are often less expensive. While there may not be much you can do in the way, let them know the impact these choices have on both current out of pocket and future as well
4. Feedback Loop: Create a system where employees can suggest improvements to the benefits plan. This can be through surveys, suggestion boxes, or open forums.
5. Lead by Example: Leadership should be the first to adopt this culture of responsibility. When leaders make cost-effective healthcare choices, discuss their health plans openly, and participate in health programs, it sets a precedent for the rest of the team.

Creating a culture of cost awareness and responsibility around employee benefits doesn't happen overnight. It starts with small steps—transparent communication, ongoing education, and a commitment from leadership. As you implement these steps, you'll not only see a more engaged workforce but also a more financially stable business. So, take these actionable steps, utilize the resources available, and start steering your ship towards a more cost-aware future.