In honour of Benefits Canada’s 35th anniversary, we took the opportunity to go back to the source to explore why employers offer employee benefits programs.
Our research looks at the past, present and future of employee benefits—and shows how much senior business leaders value them.
If one of the most effective ways to control costs is to have employees become better consumers, then they need to understand the benefits available to them. And while having an easy-to-understand plan is important, it’s only one part of the process.
The majority (63%) of respondents say the most important feature of a retirement plan is its simplicity, reflected in how well members can understand the plan options. But since sponsors are looking to introduce more flexibility, creative plan design, communication and education become paramount.
Costs in context
Justifying the investment
Turning employees into consumers
The advisor’s role
Will the PRPP matter?“If you make it more complicated, then you need to up the ante on communication while ensuring that members are not too overwhelmed,” says Marilee Mark, vice-president, marketing, group benefits, with Manulife Financial.
The challenge is that if employees don’t understand what’s going on, more information from their employer can quickly become white noise.
“To be more effective, communication has to be targeted and customized to the employees. You have to help them understand what it means to them individually as consumers,” she explains.
A robust communication strategy is also an opportunity to help increase awareness of the plan and the plan benefits among employees, says Dave McLellan, vice-president, market development, with Sun Life Financial. “There is an opportunity for employers to promote their plans more than just at the time of hire.”
In retirement plans, for example, employees often leave money on the table when they forget to enrol or may not take full advantage of the employer match. Targeted, well-timed communications can help to engage employees and increase the plan’s value in their eyes.
For their part, providers are enhancing the role they play by offering information in multiple ways—including print, face-to-face, online and new media—so that members have an opportunity to learn in the format that they are most comfortable with.
Leigh Doyle is a freelance writer based in Toronto. leigh.doyle@gmail.com
Get a PDF of this article and other special coverage of Benefits Canada’s 35th anniversary.