Effective Marketing of Employee Benefits Attracts, Retains Top Talent

Author: Marta Moakley, XpertHR Legal Editor

July 17, 2013

The Third Annual Aflac WorkForces Report shows a disconnect between employees' understanding of, and employers' attitudes toward, available benefit packages. However, the data suggests that employers that effectively market information on total rewards packages could not only inspire employee loyalty and increase work productivity but also boost employee retention.

The following are some of the key findings from the report:

  • 59% of employees said they would likely accept an offer of employment with slightly lower pay but improved benefits;
  • 74% of workers said they would be extremely or very satisfied with their position if they were extremely or very satisfied with their benefit packages; and
  • 75% of workers reported that available benefits influence their decision to leave an organization.

Although recent research shows an increase in benefits available to the US workforce, many employees may not appreciate the depth, breadth and affordability of employer-sponsored benefit plans.

Audrey Boone Tillman, Executive Vice President of Corporate Services at Aflac, stated in an interview with XpertHR that, although benefit packages constitute a "tremendous expense" for employers, organizations are "not taking full advantage of [their] investment." Tillman, who recently held a workshop on the importance of effectively marketing employee benefits at SHRM's Annual Conference and Exposition, advises that by effectively communicating benefit offerings to employees, employers create an "opportunity to engage people." Employers and employees should have as much information as possible regarding available benefits, especially those that require employee contributions and those that are made available at no cost to the employers (i.e., supplemental insurance).

Effective marketing of benefits is a boon for employee recruitment and retention across various industries since providing competitive benefit plans to employees remains a challenge for certain industries (including about 40 percent of respondents in the financial services industry, 45 percent of respondents in the manufacturing industry and 45 percent of respondents in the retail industry). However, organizations that are able to strike a balance between rising costs and comprehensive total rewards may become "employers of choice" in their respective industries. Employers should remember that only through consistent, frequent and effective communication strategies will they maintain a dominant industry position.