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Why do we need to discuss employee benefits?

Why should companies provide education on employee benefits?  After all, employees know they need medical/dental/vision/life/other, and it’s just learning about the different types of coverages offered, right?


Well, if only it were that simple.  With HSA’s, FSA’s, HDHP’s, PPO’s, and a bunch of other acronyms, there’s a lot of confusion as to what it all means.  And if you offer benefits  as a company, odds are a good amount of the budget is geared in that direction.  Why spend money on something your staff doesn’t understand?


We really need to re-look at the benefit options we have.  Are your employees maximizing the health plan?  Are they even using it?  Would it make more sense to reallocate funds elsewhere?


Start by making sure you and your employees understand where your money is going.  If you offer Health Savings Accounts and/or put employer contributions into them, does your staff understand the long-term potential benefit?  Do they realize if you are making contributions, and they don’t enroll that they’re passing up income?


What about your 401k?  If you’re matching contributions, are you educating them on why they may need to rethink whether or not they can afford to put money aside for retirement?


And what about life insurance?  Are they making the most out of the company offerings, realizing that’s often the least expensive way to get life insurance?


Or maybe for some/all of your employees, these options aren’t important to them at their current stage of life. Maybe the money would be better spent on something they do want and need to focus on.


A lot of time, energy and money goes into employee benefits.  Make sure you and your staff are making the most of every dollar spent.  Make sure you understand what you’re paying for and why it’s important.  You may decide you’ve focused on the wrong thing.


Ask your staff what they want and need.  Once they understand what they have, they may realize it’s exactly right!  Or, you may all realize the money can be better spent in ways that will be better utilized and maximized.


Educate yourself and your staff on your benefits.



An insurance agent protecting an employee with an umbrella.
Agent covering an employee with an umbrella

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