Effective Communications Critical to Benefits Satisfaction

Posted on November 24, 2009

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A new report from Prudential Insurance reinforces the notion that solid employee communications serve to increase employee satisfaction with their benefits. In the words of the report:

A well-executed communication strategy can effectively educate plan participants and positively influence attitudes toward their benefits package.

A survey conducted by my firm two years ago came to very similar conclusions. In the Prudential study, 85 percent of employees who said their employers provided highly effective communications also said that their employee benefits are highly valuable. In Charlton Consulting Group’s survey conducted in 2007, 75 percent of employees who said they were very satisfied with their benefits and compensation also said that communications provided by their employers provided them a high level of understanding of pay and benefits.

Both surveys conclude that the investment in benefits communications and education is at least as important as the investment in the benefits themselves. As the authors of the Prudential report put it, “communications can have as much impact on worker satisfaction with benefits as the range of benefits offered or the perceived dollar amount of employer contributions.” Or, stated another way (with the approaching Thanksgiving holiday in mind), employees are thankful for their benefits only to the extent that they understand them.

Best wishes to all for a happy and healthy Thanksgiving.