Skip to main content
Menu File a Claim Login
American-Fidelity-logo
Menu
Menu File a Claim Login
American-Fidelity-logo
American Fidelity Logo American Fidelity Logo
  1. Strategy
      •  
      • Employee Benefits
      • Communication and Education
      • Enrollment and Admin
      • HR Assistance
      • Tax Savings
      • Compliance Updates
      •  
  2. Products
      •  
      • Benefits
      • Dependent Verification
      • HR Technology
      • Reimbursement Accounts
      • Retirement Savings
      • Section 125
      •  
  3. Why Us
      •  
      • For Education
      • For the Public Sector
      • For Automotive
      • Account Managers
      • Customer Testimonials
      •  
  4. Blog
      •  
      • Benefits Strategy
      • Reimbursement Accounts
      • Supplemental Benefits
      • Customer Stories
      • Compliance Updates
      •  
  5. Support
      •  
      • COVID-19
      • Employer Assistance
      • Videos
      • Contact Us
      •  
  6. Claims
      •  
      •  
Login
 
 
American Fidelity Logo

How Employee Benefits  Education  Affects  Retention 

 

December 22, 2020

4 minute read

Category: Benefits Strategy

Learn more about this blog article

It’s easy to lose something if you don’t properly care for it. Whether your plants have withered, or your keys are nowhere to be found, we all know the feeling. But, sometimes, the situation is not that trivial.

In the workplace, employers must keep employees happy to avoid losing them—knowing their happiness will affect overall retention.    

After all, the most valuable asset of an organization is not tangible. While inventory, property, and investments may be important, the thing that matters most is the people. Yet, despite executives attributing 72% of their company’s value directly to employees,1 52% of voluntarily exiting employees say their manager or organization could have done something to prevent them from leaving their job.2    

Do your employees understand their benefits?   

Many employers believe their employees are happy with their plans and are enrolled in benefits that best fit their individual needs. Unfortunately, this is not always the case.    

In fact, 91% of C-level executives and vice-presidents believe their employees are happy with their benefits, but nearly a third of their employees said they weren't.3 And despite their dissatisfaction with benefits, many don’t make enrollment changes. For example, 35% of employees chose to keep the same benefits as the previous year.4    

Unfortunately, there is often little effort to ensure those plans are appropriate or that employees even understand their options. In a recent study, 1,000 people were surveyed regarding their healthcare literacy. About one-third (35%) of respondents said they either somewhat understand, don’t understand, or know nothing about their coverage and benefits.5

How are employers affected by employee benefits?   

The lack of benefits education may negatively impact employee retention. Studies have shown that employees spend just 32 minutes on average researching their options, so they may not be fully utilizing their workplace benefits to maximize potential savings.6   

But, it’s not just the employee’s finances at stake. When an employee leaves due to benefits frustration or miseducation, there are costs to the employer as well. Research by the Society for Human Resource Management (SHRM) suggests that the overall replacement costs of a lost employee can be as high as six to nine months of their salary.7

So, if an employee makes $60,000 per year, it could cost up to $45,000 to replace that single employee. Not only is replacing an employee a fiscal loss for employers, but it’s also a loss of their unique knowledge and experience.    

What if employees were better educated on benefits that fit their unique needs?   

When allowed one-on-one benefits consultation and education, employees are more likely to choose the right coverage options. In turn, they may increase their overall satisfaction and avoid wasting money on inappropriate benefits. When it comes to retaining employees and increasing total compensation satisfaction, benefits education can play a critical role.  

For more information regarding effective benefits education processes, check out these links below: 

The Cost of Not Educating Employees About Benefits 

How COVID-19 Should Change Your Benefits Communication Strategy  

 

This blog is up to date as of December 2020 and has not been updated for changes in the law, administration or current events.

  • Tags:
  • Education

Share:

 

Related Strategy Articles

 

Four signs that it may be time to bring in a benefits administrator

September 13, 2022

2 minute read

Do you think your organization needs a benefits review expert? Here are 4 signs that it may be time to bring in professional help.

  • Tags:
  • General

Can benefit education increase employee satisfaction?

September 06, 2022

3 minute read

Are you looking to enrich employee engagement, satisfaction, benefits literacy and workplace culture? Benefit education can help.

  • Tags:
  • General

Help support your employees during inflation

August 02, 2022

4 minute read

If providing pay raises isn’t within reach, there are several ways you can provide value to help retain current employees and attract new ones.

  • Tags:
  • General
 

1The Predictive Index: The State of Talent Optimization; 2020, p11  
2GALLUP: This Fixable Problem Costs U.S. Businesses $1 Trillion; March 13, 2019 

3COMPT: The State of Employee Perks in 2020 [Part 1]; Accessed Dec. 10, 2020 
4Prudential: Employee Insights on Open Enrollment; Accessed Dec. 10, 2020 
5Business Wire: Maestro Health Unveils New Research, Identifies Disconnect Between Employee Healthcare Literacy and Employer Involvement; Jan. 23, 2019 

6Empyrean Benefit Solutions: 2019 Benefits Trend Report; 2019, p12 
7USI: Cost of employee turnover; April 9, 2019 

ESB-8601-1220  

American Fidelity Assurance Company
americanfidelity.com

https://americanfidelity.com/blog/strategy/benefits-education-affects-retention/

Site Map

About Us

News Center

Careers

Contact Us

© 2022 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Cameron Enterprises

1The Predictive Index: The State of Talent Optimization; 2020, p11  
2GALLUP: This Fixable Problem Costs U.S. Businesses $1 Trillion; March 13, 2019 

3COMPT: The State of Employee Perks in 2020 [Part 1]; Accessed Dec. 10, 2020 
4Prudential: Employee Insights on Open Enrollment; Accessed Dec. 10, 2020 
5Business Wire: Maestro Health Unveils New Research, Identifies Disconnect Between Employee Healthcare Literacy and Employer Involvement; Jan. 23, 2019 

6Empyrean Benefit Solutions: 2019 Benefits Trend Report; 2019, p12 
7USI: Cost of employee turnover; April 9, 2019 

ESB-8601-1220  

  • File a Claim
    Login
  • Home
  • Benefits Strategy
    • Employee Benefits
    • Communication and Education
    • Enrollment and Admin
    • HR Assistance
    • Tax Savings
    • Compliance Updates
  • Products
    • Benefits
    • Dependent Verification
    • HR Technology
    • Reimbursement Accounts
    • Retirement Savings
    • Section 125
  • Why Us
    • For Education
    • For the Public Sector
    • For Automotive
    • Account Managers
    • Customer Testimonials
  • Blog
    • Benefits Strategy
    • Reimbursement Accounts
    • Supplemental Benefits
    • Customer Stories
    • Compliance Updates
  • Support
    • COVID-19
    • Employer Assistance
    • Videos
    • Contact Us
  • Claims
  • Careers
    • Corporate Careers
    • Sales Careers
  • About Us
  • Site Map

Popular Topics:
  • Register for an Account
  • Forms
  • Unused FSA Funds
  • HCFSA Eligible Expenses
  • Carryovers, grace periods and runoff periods
  • HSA Eligible Expenses
  • HSA Tax Forms
  • Disability Tax Forms