3 Simple Mistakes To Eliminate From Your Benefits Program

An effective benefits strategy is essential for attracting and retaining talent in any business. According to a recent survey by PeopleKeep, 81 percent of respondents felt that an employer’s benefits package was a key factor in their decision to accept a new job.

In fact, MetLife’s 2024 Employee Benefit Trends Study shows that 93 percent of employees view workplace well-being as equally important as their salary.

Yet, employers continue to miss the mark in benefits selection, despite its critical role in employee satisfaction. According to Forbes Advisor, 40 percent of employers report having lost staff who sought better benefits elsewhere. A poorly designed benefits package can leave employees feeling undervalued and overburdened, contributing to high turnover rates and costly challenges for your business.

Don’t let simple benefits mistakes derail your entire organization. Avoid these costly missteps when putting together your benefits package.

Mistake 1: Offering an unclear benefits package.

A lack of understanding is the most common issue preventing employees from accessing benefits. According to Ameritas, 85 percent of workers don’t understand their benefits options. Responsibilities at work and at home often push accessing benefits far down the list of priorities. The intricacies of plan choices and coverage options may also overwhelm employees who haven’t engaged.

The solution is straightforward: providing educational materials on benefits is essential for boosting engagement and maximizing the value of your offerings. Simplifying complex benefits into manageable steps can help employees from all backgrounds get the most out of their options. Additionally, provide ongoing support and readily address any questions that arise.

Mistake 2: Selecting outdated or irrelevant benefits

Before finalizing benefits, it’s crucial to understand what employees value in their compensation package. According to PeopleKeep, the most sought-after resources include health benefits, dental insurance, paid time off and retirement options.

However, even employee requests for a specific resource don’t always guarantee that resource will be used. Evaluate the actual usage of each offering to determine which benefits best meet the needs of your organization.

To provide relevant benefits, survey your workforce to understand what they want. In the same PeopleKeep survey, only 47% of respondents claimed that the benefits their employers offered fit their specific needs. As a result, personalization is another major aspect of benefits that goes unnoticed. According to Benefit Hub, 75% of employees want custom support based on their mental, physical and financial needs.

Mistake 3: Neglecting employee financial security

Financial stress is a significant issue for Americans and could impact your employees. One CNBC report shows that nearly 60% of Americans live paycheck-to-paycheck, which often impacts their work. A 2024 SoFi survey revealed that 1 in 4 employees felt financial stress negatively affected their performance on the job.

This stress can also affect their mental health. According to MetLife’s 2024 Employee Benefits Trend survey, 45% of employees cited financial stress as the primary cause of their poor mental well-being.

A comprehensive financial wellness program can help alleviate this burden, and employees are paying attention. The 2023 Transamerica Institute report found that while 77% of employees desire a financial wellness program, only 28% of employers offer one.

By providing educational resources and tools, financial wellness programs equip your workforce to make informed decisions and reach important financial milestones, giving them confidence and clarity in managing their finances.

Connect your team with best-in-class financial wellness benefits from U.S. Legal and Best Money Moves

Looking for a wellness benefits that your employees actually want? U.S. Legal Services has partnered with Best Money Moves, a financial wellness platform, to offer accessible, award-winning financial education.

Best Money Moves works with our legal plans to help employees make smarter decisions about their money. This confidential platform provides unbiased support for life’s financial milestones, both big and small. Connect your team with interactive budgeting, saving and debt management tools and a library of 1000+ educational resources that offer unbiased, easy-to-read financial guidance.

To learn more about how group legal insurance benefits can help your team, contact us online or call 1.800.356.LAWS for a quote.