STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

Teach Them Well
Benefits Education/Communication Needs to be More Effective
In general, plan sponsors feel there is considerable room for improving the effectiveness
of their employee benefits education and communication materials. According
to employers, the education/communication materials for their medical, dental, and
defined contribution plans—arguably more complicated benefits—are more effective
than those for life, disability, and long-term care plans.
In fact, one in five rate their current communication materials for their non-medical
insurance programs as “ineffective,” while four in ten rate the effectiveness as no
better than “moderate.” With the increased complexity and options for insurance
products, education and information must catch up.
Benefits providers who can develop education/communication campaigns that motivate
and educate employees can provide a much needed service. Special attention should
be paid to pre-enrollment communications, which can be used to convey the value
of the employer’s benefit package and help boost participation rates.
PLAN SPONSOR ASSESSMENT OF THE EFFECTIVENESS OF BENEFITS EDUCATION
Ineffective
19%
17%
18%
11%
13%
11%
Moderately effective
Highly effective
39%
41%
44%
33%
37%
37%
42%
42%
38%
56%
50%
52%
Disability
Life
LTC
Medical
Dental
401k
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