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on November 6, 2018 Human Resources Employee Benefits Employee Engagement Total Rewards Statements

Why Aren't Your Employees Taking Advantage of Fringe Benefits?

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It’s been estimated that, on average, salary makes up around 70 percent of an employee’s total compensation. The other 30 percent or so comes in the form of fringe benefits. Fringe benefits are the “extras” in a compensation package like health insurance, a company car, child care and tuition assistance. Benefits are a huge part of an employee’s compensation, so why aren’t your employees taking advantage of everything your company has to offer?

They Aren’t Aware

Your employees can’t use the benefits you’re providing if they don’t know about them. Your company may have had good intentions when putting together a generous compensation package, but for it to make sense and work well, you’ll need to communicate about it with the staff. Contact your employees with a variety of messages on different platforms and continue that communication throughout the year.

There’s Too Much Noise and Not Enough Value

Communicating about all the benefits your company offers doesn’t just mean tossing a massive binder of information on every desk and calling it a day. Most people won’t take the time to read through pages and pages of information and sift through the technical language to find the information that applies to them. To communicate effectively, you’ll need to pull the relevant information and offer the highlights, while making all of the extra information available to those who want it.

They Don’t See the Personal Value Yet

If your employees know about the benefits you’re offering, they may not know all the details that would show them how these programs can benefit them personally. Awareness is often not enough. Messages will need to be personalized so that employees will easily be able to see how using these programs and services will work for their lifestyle. For example, younger employees may not be interested in retirement planning sessions. Find ways to communicate how these benefits can work for everyone.

The Benefit Doesn’t Seem Easy to Use

Benefits should be just that – beneficial to the people receiving them. If your employees read the description of a benefit and feel like it’s going to take up more time, cost more money, and cause more stress, they most likely won’t take part. If you’re offering reduced rates for gym memberships, some will only see the money they still have to pay each month.  

There’s a Hesitancy to Try Something New

For some people, change can be difficult. And with some employee benefits, change might be exactly what they’re endorsing. For example, tuition reimbursement for employees to take continuing education courses will require a huge lifestyle change. If you’re trying to convince employees to work toward another degree by offering this benefit, you might need to explain how the extra effort now will make life better for them later.

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Sydnie Fultz

Creative Content Manager