As a company leader, you know that benefits are no longer considered purely a perk–they’re an expectation among employees. But what happens when your benefits become more of a drain on both you and your employees than a helpful and essential factor in their workplace success and performance? Transparency is crucial when it comes to employee benefits, and not having it can be detrimental to your company. Here are five major problems that arise from a lack of transparency in benefits–and five solutions to restore your financial health.

Problem #1: Losing Your Top Employees to a Competitor

According to data we’ve collected through employee surveys here at Waypoint Benefit Solutions, 50% of employees would leave their current employer for a better benefits package–and 60% are dissatisfied with their current benefits package. If your employees perceive your benefit plan as little more than a confusing conglomeration of services they don’t fully understand or don’t even use, this leads to frustration–especially when they have high contributions coming out of their paychecks each pay cycle.

The solution: The traditional broker-and-carrier model for benefits served its purpose in the past, but nowadays the bureaucracy of these plans–and the changing needs of employees and companies–creates opportunities for excessive charges, hidden costs and a lack of transparency. Consider switching to a broker with an innovative, transparent model that shows you where every dollar you and your employees spend on benefits goes.

Problem #2: Overworking and Burning Out Your HR Department

As HR professionals and benefits administrators, the frustration and lack of understanding among employees regarding their benefits so often fall on your shoulders. You are responsible for maintaining employee satisfaction, handling feedback and complaints about benefit plans and perhaps the biggest task, managing the vendors and technology required for your benefit plan to run smoothly. Dealing with both emotions and administration can lead to rapid levels of burnout for you and your team–but then who will handle the task of employee benefits?

The solution: When selecting a broker, pay very close attention to how they will work with your HR department. Are must-have technology features, like seamless payroll integration and a user-friendly employee portal, included? Will the broker provide extensive education to your team so they’ll understand what they’re actually paying for? Will it be easy for your HR team to contact your broker with questions, comments and concerns? Long-term, these considerations will lead to less work and happier working conditions for your HR team.


Problem #3: Negative Impacts on Your Company’s Overall Valuation

If you’re a CFO, it’s no surprise that employee benefits are the second largest budgetary expense of a company each year. Imagine how absurd it would be to spend this money on benefits your employees don’t even understand, enjoy or fully utilize–yet this is a common predicament for so many organizations. You end up wasting money when it could be invested in other improvements in your company. The spiraling costs of benefits negatively impact your company’s valuation, placing you at risk of losing access to the valuable capital you need to grow as a business. 

The solution: A personalized, transparent benefit plan built entirely on company and employee data and feedback will help you see what services are absolutely essential for your organization–and which you can cut to save money. This puts money back into your annual budget that you can allocate to areas where you really need it.

Problem #4: Cookie-Cutter Plans that Don’t Meet Your Company’s Needs

A traditional broker may say they’re on the side of employees like you and your team, but how often do they actually ask for your feedback–and actively use it? These brokers are more committed to making deals with major carriers and vendors because that’s how they make money. This doesn’t provide them with adequate time to devote to you and your team’s needs, so they provide each member group with the same cookie-cutter plan with a few minor customizations available.

The solution: Work with a broker who starts with you and your employees. Don’t just settle for someone who comes in with a preexisting plan before talking to you, studying your business and compiling data on which to build your benefit plan. A broker who builds a solution specifically designed for your employees understands your unique needs.

Problem #5: Making Your Company Less Competitive in Your Broader Industry

If you have a bloated benefit plan from a traditional broker that looks just like the same benefit plan every other company offers, you won’t be able to attract and retain the top talent in your industry. If employees are leaving their current company for better benefits, why would they want to accept a job with a company that offers basically the same thing?

The solution: Employees want to know where their money is going, especially if it’s coming right out of their paycheck. If you can show them where their money is going, this establishes trust between you and your team. You can leverage a transparent benefit plan as a unique employee perk when recruiting new talent.

Need Help Developing a Transparent Benefit Plan for Your Employees?

At Waypoint Benefit Solutions, we specialize in creating unique, data-driven benefit plans based on feedback from your valued employees, your unique data and our customized solutions. We make your company more competitive — contact us and get started today!