Employees overestimate their actual benefits knowledge
- Most employees say they understand their benefits when in reality only half do, reports Employee Benefits News. A new Guardian study, Closing the Gap, found that while 80% of the workers tested felt they understood their benefits “very well,” only about 49% did.
- The study used a 10-question quiz to test employees’ knowledge of benefits terminology and coverage. Most employees could answer questions on general benefits, such as what is a deductible or what is medical insurance’s purpose. But fewer employees fully understood, for example, supplemental health benefits such as hospital indemnity insurance.
- The average score was 72, a C-level rating. One in 10 Boomers and one in four Millennials failed the test. One in four employees viewed the selection of benefits as primarily a guessing game, especially during open enrollment.
A good portion of employees’ pay goes towards benefits. Therefore, they should have a thorough understanding of what they’re paying for. HRMS should not only make it easy for employees to access benefits information 24/7, but also explain insurance terminology and the types of plan coverage in detail.
Open enrollment need not be a confusing time for employees. HR can introduce new benefits before open enrollment begins. Gene Lanzoni, Guardian’s vice president of thought leadership, group and worksite markets, said companies can inform employees about benefits changes and open enrollment dates well before the process begins. He also recommended holding open enrollment for at least two weeks.
- Employee Benefits News Employees struggling with critical benefits details
- Guardian Emerging Trends