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Eager to stay competitive in today’s job-seeker’s market, employers are offering more generous Total Rewards packages now than ever before. However, because many employees still don’t

understand the value of those packages (or how to make the most of them), they end up making pricey mistakes. Here are the most common bad benefits decisions employees make along with some

road-tested messaging strategies to help your company change employee behavior as soon as possible. _Communication strategies to try:_ TIP #1: SPEAK IN HUMAN, NOT JARGON CHALLENGE #1:

CHOOSING THE WRONG PLANS Employees waste an average of $750 a year by choosing a plan that’s the wrong fit for them. Meanwhile, their employers waste anywhere from $500 to $2,100 a year on

each employee who chooses the wrong plan. The average total cost of health care is on the verge of $15,000 per employee, and with health care only getting more complicated, those numbers

aren’t dropping anytime soon. TIP # 2. CREATE MESSAGING FOCUSED ON VARIOUS EMPLOYEE GROUPS Benefits info that’s heavy on jargon and legalese will only confuse and bore employees. And

confused, bored employees are more likely to either keep doing what they’ve always done or choose the most expensive plan just to “be safe.” The good news is that helping your employees

understand their benefits (and make smarter choices as a result) can be as simple as defining each term you use the first time you mention it. Those definitions should use clear,

conversational language with a dash of humor tossed in…think of writing it the way you’d explain it in-person to a friend. Every one of your lovely employees is a unique human being who is

also a member of a few different employee groups or types. By tailoring your “choosing a plan” messaging to fit each group’s unique pain points, you’re more likely to capture your

workforce’s attention and get them to take action. This tailoring could involve adding call-outs in general content or creating standalone content for each group. TIP #3: GIVE EMPLOYEES A

REALLY GOOD DECISION SUPPORT TOOL A few meaningful employee groups: _*To get this number, our data team applied what they knew about how often ALEX users select the plan that ALEX highlights

(75% of the time) and the average savings employees in our sample saw by taking that plan instead of the next-best “best-fit” option ($642) to the number of employees who chose any plan

last year (638,000). Math: it’s pretty sweet._ * Different demographics (Generation Z, Generation X, Baby Boomers) * Union vs. non-union employees * Recent hires vs. tenured employees *

Employees getting married or having a child soon Interactive online tools (like ALEX) give employees clear, personalized benefits guidance tailored to fit their individual health care needs

and circumstances. In fact, for many employees, interactive tools are even more helpful than talking to their HR team or colleagues: because the tool is private and unbiased, employees are

more likely to be honest about their health care needs and less likely to be influenced by social bias, making it more likely they’ll make best choices _for them_. Case in point, last year,

ALEX helped employees potentially save a whopping $307 million* by choosing our recommended plan over the second-best option. _Communication strategies to try:_ TIP #1: SHARE MEDICAL

PRICE-SHOPPING RESOURCES CHALLENGE #2: POOR HEALTH CARE SPENDING DECISIONS TIP #2: GET SERIOUS ABOUT OFFERING-AND PROMOTING-TELEMEDICINE High-deductible plans are more the rule than the

exception these days, which gives employees more control of their own health care spending than ever before. However, most employees aren’t benefits aficionados, and lack the understanding

they need to make wallet-friendly choices. On top of that, most companies don’t do a great job filling the knowledge gap. Websites like Goodrx.com help employees figure out which pharmacy in

their area offers the best price on their prescriptions, potentially saving them thousands of dollars a year. TIP #3. URGENTLY PROMOTE URGENT CARE Over half of all companies say providing

more virtual care solutions is their top initiative for 2019, and employees are increasingly open to the idea of virtual visits. In fact, in a recent survey, roughly three-quarters of

Americans said they would consider using a virtual visit for: * A question about a prescription * A pre-surgery appointment * Ongoing care for a chronic condition When it comes to promoting

your telemedicine tool, focus on what’s in it for the employees rather than the bells and whistles of the technology. Emphasize convenience (ex. “you don’t have to get off your couch when

you’re sick”) and pricing (ex. “a telemedicine visit costs you a fraction of what an in-office visit does”), and put that info front and center in all the HR resources your employees turn to

when they get sick. One of the most common-and expensive-ways employees misuse their health care is by going to the emergency room for non-life-threatening illnesses. That comes down to the

fact that many of them don’t realize that they’d get much cheaper-and quicker-care at an urgent care center. Use this article to whip up a comparison chart for your employees, making sure

to include where to go for common illnesses or injuries. Be sure to give them a shortlist of all the urgent care centers in your area; that way, there’s no question where your employees

should go at the critical moment. CHALLENGE #3: LOW HSA ENGAGEMENT _Communication strategies to try:_ TIP #1: BEAT THE TAX SAVINGS DRUM HARDER Fact: 70% of HSA participants can’t pass a

basic HSA proficiency test. And half the people who enroll in an HSA plan don’t contribute a penny to that HSA. Ouch. _Bottom-line messaging works: after talking to ALEX, employees said they

would contribute an average of $2,620 to their HSAs-36% above the national average of $1,921._ TIP #2: EMPHASIZE THE IMPORTANT DIFFERENCE BETWEEN FSAS AND HSAS Part of the challenge with

boosting contributions is that some employees need more help understanding how HSAs work. The real problem, though, is ineffective employee communications. TIP #3: MAKE YOUR MESSAGING MORE

TIMELY AND FREQUENT It’s simple: When people pay for healthcare out of their HSA account instead of their bank account, they can save hundreds if not thousands of dollars in taxes. So it’s

your job to make those somewhat abstract tax savings feel as tangible to your employees as a handful of cash. Using the average tax rate (19.65%) as a benchmark, list out how much employees

stand to save by contributing at different levels ($1,000, $2,000, etc.). And if you feel a “fear of missing out” message might be more effective, frame those savings as something employees

will lose if they don’t act. You know that-unlike FSAs-HSAs have no “use it or lose it” date. The money employees put into their HSAs will stick with them until they need it, whether it’s

this year, next year, or twenty years from now (even if they change jobs or retire). Your employees on the other hand…don’t necessarily know this. So be sure to proactively call out the

difference everywhere you mention HSAs. Assume there’ll be confusion if you don’t. Your employees can enroll in-and contribute to-their HSA at any time throughout the year, so don’t wait

until open enrollment to bring up HSAs. Reach out consistently, whenever your employees are best primed to care: at the beginning of a new plan year; in March and April when tax savings are

front of mind; or after a pay raise or promotion. CHALLENGE #4 — LOW 401(K) CONTRIBUTIONS _Communication strategies to try:_ TIP #1: FOCUS ON BEST-IN-CLASS FINANCIAL BEHAVIORS Not all your

employees are in a position to contribute generously to their retirement accounts because they’ve got other, bigger, financial fish to fry. TIP #2: SHARE BASIC INVESTING FAQ’S But many who

can and should boost their retirement funds…just don’t. As a result, they miss out on free money and become less prepared to retire on schedule (which isn’t great for you, their employer,

either). TIP #3: DESCRIBE FUTURE RETIREMENT FUNDS AS MONTHLY INCOME Many employees equate meeting their employer match with a really good contribution rate. But in most cases, merely meeting

that match isn’t going to be enough for them to reach their retirement goals. To counter this assumption, make clear what the top 5–10% of contributors (at your company, or nationwide) are

doing _before_ sharing national averages (which will obviously be lower). (Why mention the high achievers first? Because we humans have a tendency to be influenced more by the first of a

series of options, known in the world of behavioral economics as “anchoring”.) If you aren’t intentional about what behavior you anchor your employees on, they’ll default to something less

than ideal…like that employer match. Contributing to retirement funds is important, but if your employees aren’t investing those funds wisely, they’re going to fall short. Handing over the

brochures your 401(k) vendor won’t help, since they’re usually packed with jargon and legalese. So it’s up to you. Be sure to use conversational, simple language to answer common investing

questions and define basic investing terms (like compound interest) for your employees. Getting people to do things now that will benefit them in the future is…difficult. Right now is so

real and vivid, and the future is not. To give your employees a stronger feel for the way their current retirement fund decisions will impact their quality of life when they’re retired, do

more than project various lump sums they’ll have access to. Instead, break down those lump sums into monthly income spread over, say, a twenty-year retirement period. Most employees know

what their monthly income now is, so that number will give them a more visceral understanding of how comfortable-or not-they would be. _Communication strategies to try:_ TIP #1: MAKE

FINANCE-RELATED BENEFITS GUIDANCE PART OF YOUR FINANCIAL WELLNESS PLATFORM CHALLENGE #5 — LOW FINANCIAL WELLNESS PROGRAM ENGAGEMENT Convincing your employees that you, their employer, are

the ultimate authority on credit card debt or creating a household budget is an uphill battle. Even if you do see decent engagement with your financial wellness resources, it’s nearly

impossible to know if they’re working; to gauge success, you’d need a statistically relevant chunk of your workforce to track their financial behavior and turn over their ATM receipts. And

that…isn’t going to happen. TIP #2: PROVIDE ADVICE THAT WEIGHS ALL OF YOUR EMPLOYEES’ FINANCIAL CONCERNS Tax-savings accounts and retirement plans are financial products that carry the same

complexities and consequences of any sophisticated financial product. However, they’re generally handed over to employees with a confusing vendor pamphlet and login instructions. Consider

swapping out a financial wellness program focused on employees’ take-home pay for one centered on helping them take advantage of payroll deductions in a way that makes the most sense for

them. When employees automatically save money before it reaches their paycheck, it’s (unsurprisingly) much harder for them to spend it. And as their employer, you control that spigot, so

you’re in the perfect position to lead the way. The problem with the financial advice HSA, 401(k), and Financial Wellness vendors provide is that: 1) it’s heavily biased towards their

product, 2) doesn’t explain how different tax savings products relate to each other, and 3) doesn’t factor in employees’ many other financial priorities (like, say, trying to pay off college

and credit card debt, save up for a down payment on a house, or sock away a rainy-day fund.) Companies that offer holistic, vendor-agnostic advice help their employees in a more meaningful

way and also give themselves a leg up when it comes to recruiting and retention in this highly competitive talent economy. _Originally published at __https://www.jellyvision.com__ on April

25, 2019._