The importance of clearly communicating employee benefits
Businesses recognise the value of employee benefit programmes – both for them and the employee – but many, especially Small to Medium Enterprises (SMEs), may struggle to communicate them effectively to staff.
Employees benefits, such as health insurance, wellness programmes and pensions, are a valuable asset for any workplace. A strong benefits package helps a company demonstrate that it values its employees, helping foster increased job satisfaction. This, in turn, can boost workplace morale, as a happy and motivated team is more likely to be productive and collaborate effectively.
Job satisfaction from good benefits can also play a key role in talent retention as nearly three-quarters (72%)1 of employees who are offered 10 or more benefits report that the quality of the benefits they receive makes them more likely to stay with their employers. More employers are recognising the value of employee benefits, not just for staff but for the business itself. In fact, 24% identify a lack of employee well-being as a key risk to business growth in 20252.
Importantly, these advantages hinge on employees being aware of and appreciating the benefits they receive. While the advantages of a competitive benefits package are clear, many employers, particularly SMEs, may find it challenging to effectively communicate their offering to staff.
Although employees can be entitled to a range of benefits, often they receive only a brochure upon joining a company and lack access to detailed information. This may leave them scrambling to contact various people to get the answers they need. A digital app, offering instant access to benefits information in a user-friendly format, can be an effective solution to this challenge.
Employers invest significant resources in providing benefits to their employees, so it's crucial that they clearly communicate these offerings to maximise the value of their investment. As employee benefits are a key tool for attracting talent, effectively communicating these benefits also helps reduce the risk of employees leaving for other companies simply because they don't understand the value of the benefits they currently receive.
For employees, these solutions improve visibility and help make it easier to understand the benefits to which they are entitled, without the hassle of making calls or searching through old emails. Immediate access to this information may also prevent frustrating and potentially dangerous scenarios where, for example, an employee injures their back over the weekend and needs to get physiotherapy. If they do not know their insurer and the virtual facilities available, they must wait until Monday for answers. Additionally, this solution respects employees' privacy by allowing them to access their benefits information without the risk of disclosing personal information to their employer.
In addition, most employees are accustomed to using digital apps in their daily lives and expect to receive information instantly and in a way that suits them. Offering a solution that provides a consumer grade experience is an investment in the future of the business. The Gen Z generation have just entered the workforce with many valuable, in-demand skills and make up 27%3 of the workforce by 2025; therefore, it’s important to engage with them early and continue to meet their distinct needs.
An app that effectively communicates employee benefits could be the solution employers are looking for. The importance of embracing technology in HR practices is something employers acknowledge, with 25%4 of businesses citing the inability to realise the full potential of technology as a primary risk to business growth in 2025. In addition, rolling out new HR technology or optimising existing platforms has risen to sixth place5 in the HR priorities for 2025, up from 13th place last year.
An app may be particularly useful for SMEs, which often face tougher challenges in recruitment and retention. With fewer resources than larger businesses, they may struggle to implement effective digital communications strategies. Therefore, they can be left looking for cost-effective solutions to ensure their employees are fully informed about their benefits, without stretching their budgets.
Recognising these challenges, Mercer Marsh Benefits (MMB) drew on our expertise to develop a proprietary benefits app, Benefits You, to help employers communicate their benefits offering and reap the full value of their investment. For more information, contact an expert now.
