Overheard @: JD Power's Dougherty discusses health plan satisfaction stats

Try as you might, it seems most workers still don’t understand their health plan. That’s one of the top-line findings from J.D. Power & Associates' third annual national study on health plans satisfaction.

And according to JDP's Jim Dougherty, executive director of the firm's helath care practice, what employees do know, they don't like much. “Members still tend to be least satisfied with the information and communications they receive from their health plan -- the third most important factor in overall satisfaction,” he says. “Consequently, improving member communications can go a long way in driving higher levels of overall member satisfaction -- particularly since only one-third of members say they fully understand how their health plans work.”

You can find the nuts and bolts of the study -- which covers more than 33,000 members in 131 plans across 17 regions -- online, but I chatted with Dougherty recently to get the inside scoop on what he found most interesting about this year's findings.

First, although member satisfaction regarding communication is on the bottom rung, Dougherty mentioned that "plans that are moving customer service online are gaining in satisfaction." Really? I would've thought removing the human element from plan communications would have been a driver in lowering satisfaction. But no, Dougherty told me: "If a Web site is designed well and members can find what they need easily, it appeals more to members since it takes less time to answer routine questions."

Dougherty also noted that "every one of the plans in the Northeast had a significant increase in satisfaction" and that California plans posted strong numbers as well. What's going on there on the coasts? In a word, reform. Dougherty seems to believe that the buzz surrounding Massachusetts' health reform initiative and California's efforts to do the same was a rising tide that lifted all boats, so to speak.

One last nugget involved Dougherty's take on JDP's numbers regarding "plan tenure," specifically when it came to consumer-driven plans. Employers that had a rocky first year with a CDHP should take heart, as the survey shows that although member satisfaction in their first year of a CDHP is pretty low, year two seems to mark a turning point.

"In year two, they're much more satisfied," Dougherty's told me. "They understand the plan better, their health care spending needs better, how to manage an account and the tax savings better. It takes about a year to 18 months for them to get there, but if they can get to the second year, they are happier."

Tip of the Day: Effective communication through layoffs in three stages

Although survey results show employers forecast that “the pace of layoffs may be slowing from the staggering highs of the last few months, ... there will certainly be more to come,” admits Kathryn Yates, global director of communication consulting at Watson Wyatt. “While employers continue to make difficult cost-cutting decisions, they can still take important steps to keep remaining workers engaged and productive on the job.”

Watson Wyatt suggests three stages of communications efforts for employers before, during and following layoffs:

Before
Prepare leaders early. Leaders should initially deliver key messages about business conditions and actions, and frontline managers should personalize and reinforce them.

During
Clearly communicate the rationale for layoffs, and don’t shy away from tough questions. Transparency is critical to maintaining trust. Employees leaving the organization will want to know what support the company will provide them and hear that their service has been valued. Employees remaining will want to know whether their own jobs are secure. Messages to both groups should remain consistent.

After
Engage remaining employees by communicating a vision for the future. Highly engaged employees are more resilient during times of change and will drive performance in critical times. Deliver messages about the organization’s long-term vision, clarify how employees can contribute to it and set up realistic expectations for sharing information and offering support going forward.

EBN recently spent "Five Minutes With ..." Yates for our podcast series. Download the audio here.

News You Can Use: Workers fear losing retirement savings

Employees aren't immune to the news reports of millions of Americans losing trillions of dollars in collective retirement income, and the news that increasing numbers of organizations are freezing their retirement plans, suspending matching contributions or both is heightening anxiety about their futures.

A new survey by Workplace Options finds that 59% of employees are concerned that money from their pensions and 401(k)s won't be there when they need it.

Dean Debnam, Workplace Options CEO says the worry causes a vicious cycle, as layoffs beget financial worries that decrease job performance and put employees in the line of fire for layoffs. "This, coupled with financial worries, can spell disaster for a worker's emotional and physical wellbeing, as well as overall productivity."

Even if your company is suspended its matching contributions -- which I strongly advise against -- or otherwise making retirement plan cutbacks, be sure to communicate with employees in a way that doesn't send them into a tailspin. Click here to listen to our podcast with communications expert Dennis Ackley and read the accompanying article, “Softening the blow of bad benefits news,” in the February EBN.

Tip of the Day: Get workers to tune in to benefits updates

With open enrollment season in full swing at companies nationwide, employees who miss out on benefits may be simply throwing money away.

Nearly a quarter of workers don't pay attention when new and potentially cost-saving methods are offered, states new data from CareerBuilder.com. More than half of employers report that workers are losing more than $250 through poor choices, and 20% report that workers are losing $1000 or more.

"Open enrollment ensures that eligible employees are not missing out on significant amounts of helpful benefits and wallet friendly programs," said Rosemary Haefner, vice president of human resources for CareerBuilder.com. "In a challenging economy, many people are being prudent about how they can save money by cutting back on exorbitant personal expenses, but also need to be aware of cost-saving benefits at work that are easily available to them."

Haefner offers the following tips to employees to take advantage of benefits savings:

-- Keep benefits on radar: Workers are already overwhelmed with e-mail, so make each communication count. Use bullets, bold, and consumer marketing techniques to convey benefit changes, especially when cost savings are available.
-- Speak up: Make yourselves available to employees, via telephone or one-on-one meetings.
-- Be proactive: Tell employees about savings available through benefit changes, and highlight information about savings in these communications. And during one-on-one meetings, be sure to take the time to educate employees about other benefit offerings that might be of interest, like transportation reimbursements, or FSA plans.

The survey was conducted among more than 6,100 U.S. workers and more than 3,000 hiring managers and HR professionals between August 21 and September 9, 2008.

Overheard At: Great communication is simple ... in theory

Jennifer Benz, founder of Benz Communications, discusses new trends in benefit communication as part of our November feature on the topic.

For more information on this topic, check out the following articles in this month's issue:

• Award winners share best practices in communication
• Are you talking to me?

Scone: Protecting the blind side

I’m a big football fan, and one of the things I hate the most is seeing a quarterback get hit on the blind side (the opposite of his throwing arm) because there’s nothing worse than a hit you don’t see coming.

Along those lines, I received an e-mail last week from a recently laid off employee. Lamenting the loss of her job, she asked if I could help her find information on how to recoup the nearly $400 she’d deferred into a commuter benefits account but had to forfeit upon her termination.

I double checked with a benefits attorney, then gave her the tough news that yes, the funds forfeited to employer, as she was no longer with the company. I felt bad for her, having been completely blindsided by the layoff and then it seemed getting insult piled onto injury by losing funds she probably could sorely use right now.

It got me and a few EBN colleagues thinking. Obviously, employers must comply with WARN (Workers Adjustment Retraining and Notification Act), which requires employers with 100 or more workers to provide employees, bargaining representatives and local government officials with 60 days advanced written notice of a mass layoff or a plant closing.

But more specifically, can/should employers communicate far in advance to employees about the benefits they lose (commuter benefits, FSA funds) and the ones they can take with them (retirement savings, HSA funds) if they are laid off? How far in advance? And does such notice make a company appear unstable or give away that layoffs are being considered?

Is giving them the information and tools to protect their money more valuable than causing some uneasiness about whether they might be the one to get a pink slip? An article in an upcoming issue of EBN will address these questions and others, but I’d like to hear your thoughts.

Meanwhile, communication expert Hugh Braithwaite, president of Braithwaite Communications, offers the following tips in communicating effectively during a layoff:

* Be complete. If there are holes in the facts of your story, employees will fill-in-the blanks with what they believe the facts should be. That’s how rumors get started.
* Be consistent. If you tell a different story every time you tell it, information will become muddled and there will be mass confusion. That’s how rumors spread.
* Inform affected employees first. This should be common sense, but employees being laid off should hear the news first and in person if possible. Respect and compassion are essential. Prepare an “exit kit” for each laid-off worker that contains an official letter, hand-outs with frequently asked questions, confidential agreements, references, contact sheet, and severance and benefit information. Be as thorough and complete as possible –remember, the more comprehensive you are, the less you are leaving to the imagination.
* Inform retained employees. Review the situation, be prepared to answer questions, and provide resources for follow-up questions and concerns. Depending on the size of the layoff, a series of regular employee communication sessions may be necessary instill confidence and maintain a sense of community.

News You Can Use: Lack of communication damages morale

We all know communication is essential when getting benefits messages across to employees, but new news from Accountemps suggests that effective communication can actually improve morale as well. When used incorrectly, one-third of executives responding say that a lack of open and effective communication is the top thing that can damage employee happiness.

"Regular communication with employees is always integral to an organization's success, but it becomes especially critical during periods of uncertainty," said Max Messmer, chairman of Accountemps and author of Motivating Employees For Dummies(R) (John Wiley & Sons, Inc.). "When people are concerned about job security and company performance, updates on corporate news are essential. By keeping employees informed, managers can address anxiety and ensure workers are focused on meeting business objectives."

For more information about how to effectively reach your employees, we'd suggest "Are you talking to me?" in this month's EBN.

Tip of the Day

Be a "wicked cool" communicator.

The consumer marketing strategy of hooking employees with "cool" features - can easily apply to benefits communication, the current EBN reports.

"You've got to meet the wicked cool factor," says Elizabeth Byerly, office practice leader in communications for Watson Wyatt's Atlanta office. For example, use a different voice or action for all communications (like the Geico commercials). Make a simple e-mail stand out with a popular song playing in the background, she suggests.

Upping an organization's cool factor also can involve leveraging cool employees, the pros assert. Think of them as employee-Fonzes. "Find who the opinion shapers and vocal people are within your organization and get them involved," says Michal Kisilevitz, managing director of the Benefits Roundtable at Corporate Executive Board.

Read the full article here.

News You Can Use: Employees hopping on the wellness bandwagon

Employees want to become healthier, and they are receptive to wellness programs offered by their employers. That’s the take-home message from the National Business Group on Health’s new survey.

As a result of employer communications about health and wellness, 43% of workers have made an effort to improve their overall health. For this type of communication, e-mail is the preferred format of 77% of employees. “They want more health care communications targeted to their interests,” says Helen Darling, president of NBGH. “Employees do value communications from their employer. ”

Other key findings include:
* 74% of employees are trying to adopt healthier lifestyles today in hopes of reducing future health care costs in retirement.
* 54% of workers say they would take advantage of health-related programs sponsored by their employer, union or health plan.
* 47% of employees say work demands prevent them from leading a healthier life.
* 34% of all employees would be very likely or extremely likely to participate in a stress management program if it was offered at work.

Darling notes, “The financial meltdown will make [wellness initiatives] more important. We know we need to do better.”

Tip of the Day: (For Employees) How to communicate better with your boss

In honor of National Boss Day (today) we have three tips on effective communication from consulting firm Adecco. In keeping with our larger theme of more frequent communications from HR, distribute these to your employees with a short note about National Boss Day.

  1. Be transparent: Keeping an open and honest line of communication
    between you and your manager is one of the best ways to create an
    effective working relationship. Discuss potential problems instead of
    waiting for actual problems to arise.
 2. Bosses are people too: When a personal relationship is non-existent,
    it's quite easy to forget that your boss is an employee just as you
    are. Many of the same stresses you experience at work are the same they
    experience as well. Connecting on a more personal level, like
    discussing a similar frustration or discussing the difficulties of
    achieving work/life balance, will create a culture of understanding
    that will ultimately provide a better working relationship.
 3. Respect their position: No matter how close you are with your boss,
    always respect their position and the job they have to do.  If personal
    and professional lines become blurred, it sets the stage for
    uncomfortable situations to arise that will negatively affect the
    relationship.

News You Can Use: Employees need reassurance too

Working Americans are not hearing from senior leaders in their companies about the implications of the global financial crisis, according to new research released today by global public relations firm Weber Shandwick.

The survey of 514 employed Americans shows that 70% expect the current economic and financial problems in the U.S. will have a negative impact on the company they work for over the course of the next year. Of those, 26% believe their company will have to lay off employees and 62% said their company would have trouble meeting its goals.

The research highlights a clear deficit in the workplace between employee appetite for more communication on the impact of the economic crisis and the levels at which company leadership is providing information. The research shows that 71% of people felt that their company's leadership should be communicating more about current economic problems, and 54% have not heard from company leaders at all on the impact of the financial crisis on their company. By comparison, 74% said that they had heard colleagues and co-workers talking about the issue.

Of those who had discussed the financial crisis at work, 86% say that senior executives or management were seen as "believable" and "trustworthy" sources on the topic.

"At a time when working Americans are concerned about their personal finances, their jobs and the overall economy, employees are looking for credible, candid information, and right now too few business leaders are filling the information void that exists," said Harris Diamond, CEO of Weber Shandwick. "Employers have a great opportunity to communicate with their workforce about the impact of the economic situation on their companies as well as on employees."

"By stepping up and communicating more with their employees, company leaders will enhance their company's standing, consolidate their position of trust in challenging times and head off any inaccurate rumors or fears that are all too common in fast-moving crises such as these," added Diamond.

"In an age of greater transparency where employees play a vitally important role in shaping a company's reputation both in good times and in bad, their views have an impact that goes far beyond the office or shop floor," said Micho Spring, chairperson of Weber Shandwick's U.S. corporate practice. "Many companies have highlighted the need to invest in employee communications, and the questions raised by the financial crisis confirm how now, more than ever, employees need to be equipped with information from senior voices in their companies."

Tip of the Day: Supercharge your benefit communications during OE

You're likely in the throes of open enrollment, but that doesn't mean that last-minute improvements can't be made, particularly in the area of benefit communication.

Jennifer Benz, founder of Benz Communications, offers these five simple tips:

• Keep it simple. If you haven’t already done so, create a one-page Enrollment “Tip Sheet” that lists what’s changing in as simple a form as possible (perhaps just a bulleted list), gives brief enrollment instructions, and tells employees and families where to go for all the details.
• Make it personal. Resist the temptation to include figures about your total benefits spend or tell employees how many billion dollars per year bad health care decisions are costing the US. If you talk about your overall health care costs, break it down into what the company spends per employee.
• Promote missed or under-utilized benefits. Put together a list of the five to 10 benefit plans employees aren't using enough -- health savings account, fitness benefits, voluntary insurance, hidden features of the EAP, preventive care benefits, commuter benefits, etc. -- as a one-page flyer.
• Talk to your employees and let your employees talk. Debating whether or not to schedule enrollment meetings? In-person meetings are always worth the effort. Employees will appreciate being reached out to and given an opportunity to ask questions. Can’t make it to all of your locations? Hold virtual meetings or conference calls. Post the recording online for employees who can’t make it.
• Or, start a benefits blog and ask employees to give feedback and ask questions via the comments section. You don’t have to be prolific, just a post a week during enrollment season will be of huge value to employees.
• Get managers in the game.
  Chances are your employees are talking to their managers at least once a week, maybe several times a day. Get “the boss” in the game and give managers the tools and incentive to talk to their employees about benefits. Make sure your managers know benefits are an essential part of motivating their team. Often they just don’t know what to say or how to say it, so give your managers talking points and a quick run-down on why it matters.

Wish You Were Here: Harris Teeter gets tough for top-notch benefit communication

When Harris Teeter, a 175 store, 20,000 employee grocery chain in the southeastern United States, was charged with revamping their existing benefit communications, benefit manager Kerri Simmons turned to an innovative telephonic system to put into practice the principal that people learn best when they listen and participate at the same time.

In 2005-2006, Simmons says that they were offering a great benefit package but not engaging employees because many didn’t understand their packages. The paper-based system was a nightmare for HR, who keyed in as many as 6,500 different paper enrollment choices each year.

Simmons knew there was a better way – she wanted real-time tracking of employee issues, a streamlined enrollment process, and sought a way to engage her employee population at the same time. Hopefully, this would control costs, streamline the HR function, and show a rise in voluntary benefit offerings as well.

After extensive research, Simmons turned to a telephonic based benefits enrollment company that would allow her employees to call in on their own time to walk through benefit enrollments. Extensive mailings notified employees that enrollment for 2006 was mandatory even if they already were receiving company benefits. Every employee was given a paper enrollment booklet, which walked, screen-by-screen, though their enrollment processes. Fill-in-the-blank style, a specially trained telephone coach would walk employees through the benefit selection process, stopping to offer cost comparisons, benefit explanations, and even discuss plan options for each participant.

Over 95% of employees participated through call-ins during the first year, and the additional 5% were targeted though a “if you don’t call us, we call you” backup plan.

In the first year, Harris Teeter saw a 39% enrollment in voluntary benefits and reduced turnover to seven percent.

When asked what the biggest benefits were, Simmons had three simple words- “Cost savings. Huge.” But the biggest benefit of all, she says, was the lack of “noise in January.” Employees finally understood their benefits and fully began to appreciate the package Harris Teeter offered. “It’s amazing how many employees didn’t know we had a company life insurance policy,” she says. “We were heroes after that.”

For more information on Harris Teeter’s policies, look for the Benefits Communication feature in the November 1 issue of Employee Benefit News.

Overheard At: BFE attendees voice frustrations, solutions regarding employee engagement

The following are comments from Benefits Forum & Expo attendees at a peer networking session for large employers (more than 1,000 employees):

"It doesn't matter how many times you e-mail them [benefits communications], they don't read it."

"I can talk to them about benefits until I'm blue in the face, but if information comes from one of their coworkers, that's when they listen."

"We stopped using smaller incentives -- $50, $100 -- and instead just focused on one big-ticket item, a car. Seeing that clicked with employees, and we ended up spending the same amount that we would have spent on a bunch of smaller cash incentives."

Scone: Trust issues limit employees’ HR interactions to transactional

Two surveys out this week show HR/benefits managers have some PR work to do among employees at their companies.

First, the Opinion Research Corporation finds Americans are more likely to go to a friend or colleague than HR about an issue at work. Most (66%) would, understandably, speak to their manager about a problem. But the stats become cringe-worthy when you consider that 39% prefer to turn to friends and less than one-quarter (22%) would go to their HR department for help.

Worse, 26% of workers surveyed doubt HR’s commitment to keep details confidential. Where did employees get the idea that HR/benefits pros are a bunch of blabbermouths? Perhaps somewhere in your efforts to become a strategic business partner and aligning the benefits function with corporate interests, employees began to believe that your job was to help the company, not them. Just my two cents.

Whatever the reasons behind the distrust, for now at least, it seems employees would prefer to keep the HR-employee relationship a transactional one. And even in this regard, it looks like benefits pros have some work to do. Although MetLife reports that HR is the number one source consulted for advice during open enrollment, 51% of employees say they didn’t get the resources they needed to make informed benefits elections.

Many employees said they felt either confused (25%) or frustrated (24%) while selecting their benefits, leading three-quarters of employees to make no changes – surprising, given that 44% experienced a major life event, such as a divorce, having a baby, buying a home or getting married.

MetLife offers several tips for employers on improving benefits communication and guidance, and a new tool to simplify the enrollment process. However, in my view, employers can improve employees’ understanding and perceived value of your company’s benefits and the HR/benefits function without spending anything. Just talk to your workers. That’s it. Face-to-face, and answer their questions individually. Why this idea has become a novel one, I’ll never know.

I know that you’re busy, and self-service tools make your job easier. And I know you’ve read surveys that show employees want more benefits information available to them online. But when it comes to confusing financial decisions, people want to talk to another human being. It’s why in a world that’s almost completely automated, people will call a customer service line and press countless buttons just to get to a live voice.

Yet strangely, MetLife finds only 30% of employers conduct enrollment meetings/seminars. If you want employees to be responsible stewards of their health care and other benefits dollars and decisions, you have to show them how. In person.

For employers to be successful, both the trust and education issues must be addressed. As Wheatley says, “The critical role HR plays within an organization should not be underestimated, as the success of any enterprise depends significantly on the extent to which its workforce is engaged with and dedicated to its mission.”