Employers, workers have major perception gap over benefits

Dive Brief:

There is a significant disconnect between employers and employees when it comes to benefits offered in the workplace, according to the the third annual Guardian Workplace Benefits Study.
The study, which measures how Americans perceive and value their employee benefits, found that nearly two in three workers strongly believe that employers have a responsibility to offer insurance and retirement benefits.
In stark contrast, only 16% of employers strongly believe they are responsible for providing benefits. Yet, employers acknowledge that workplace benefits do play a role in helping employees and their families achieve financial security.

Dive Insight:

Forty-two percent of employees surveyed get most or almost all of their insurance products through the workplace, while 68 percent rely on their benefits for at least half of their financial preparedness. Even when employers offer these benefits, however, many workers do not take advantage because of poor decision-making, ineffective communication or education efforts. Employers can improve enrollment and the perceived value of these benefits by increasing communication and transparency, according to Guardian.

For example, a way to improve communications is to offer a total compensation statement. Workers who recieve one place a greater value on their benefits and consider their company’s benefits communications effective. Nearly three in four employees who receive a total compensation statement say that seeing information about the monetary worth of their benefits caused them to place greater value on them. Unfortunately, just one-third of employers report providing their employees with a total compensation statement.

“Our study reveals how benefits provide a strong financial foundation for many Americans, but many aren’t taking full advantage of what their employers offer,” said Ray Marra, senior vice president, Group Products at Guardian. “It’s not only important to offer benefits, but to help employees make informed and educated decisions that fit their particular needs. Providing more personalized, easy-to-access professional guidance and decision-support tools will help employees achieve financial security.”