8 scary benefits behaviors employees should avoid

Nothing is more scary to benefits professionals than employees failing to review their open enrollment materials. Continue reading for eight of the scariest benefit mistakes and tips on how you can correct them.


Halloween is already frightening enough, but what really scares benefits professionals are the ways employees can mishandle their benefits. Here are eight of the biggest mistakes, with tips on correcting them.

Participants don’t review any annual enrollment materials

Why it’s scary: Employees are making or not making decisions based on little or no knowledge.

Potential actions: Employers can implement a strategic communications campaign to educate and engage employees in the media and format appropriate for that employee class, or consider engaging an enrollment counselor to work with participants in a more personalized manner.

Employees don’t enroll in the 401(k) or don’t know what investment options to choose

Why it’s scary: U.S. employees are responsible for much of their own retirement planning and often leave money on the table if there is an employer match.

Potential actions: Employers can offer auto-enrollment up to the matching amount/percent; consider partnering with a financial wellness partner, and provide regular and ongoing communications of the 401(k)’s benefits to all employees.

Employees don’t engage in the wellness program

Why it’s scary: The employee is potentially missing out on the financial and personal benefits of participating in a well-being program.

Potential actions: Employers need to continuously communicate the wellness program throughout the year through various media, including home media. Employers also should ensure the program is meeting the needs of the employees and their families.

Employees don’t update ineligible dependents on the plan

Why it’s scary: Due to ambiguity where the liability would reside, either the employee or the plan could have unexpected liability.

Potential action: Employers can require ongoing documentation of dependents and periodically conduct a dependent audit.

Employees don’t review their beneficiary information regularly

Why it’s scary: Life insurance policy proceeds may not be awarded according to the employee’s wishes.

Potential action: Employers can require beneficiary confirmation or updates during open enrollment.

Employees do not evaluate the options for disability — whether to elect a higher benefit or have the benefit paid post-tax

Why it’s scary: Disability, especially a short-term episode, is very common during one’s working life; maximizing the benefit costs very little in terms of pay deductions, but can reap significant value when someone is unable to work.

Potential action: Employers can provide webinars/educational sessions on non-medical benefits to address those needs.

Employees do not take the opportunity to contribute to the health savings account

Why it’s scary: The HSA offers triple tax benefits for long-term financial security, while providing a safety net for near-term medical expenses.

Potential actions: Employers can select the most administratively simple process to enroll participants in the HSA and allow for longer enrollment periods for this coverage.

Employees do not use all of their vacation time

Why it’s scary: Vacation allows an employee an opportunity to recharge for the job.

Potential actions: Employers can encourage employees to use their vacation and suggest when the workload might be more accommodating to time off for those employees who worry about workloads.

SOURCE: Gill, S. & Manning-Hughes, R. (31 October 2018) "8 Scary Benefits Behaviors Employees Should Avoid" (Web Blog Post). Retrieved from https://www.benefitnews.com/slideshow/8-scary-benefits-behaviors-employees-have?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001


Have You Taken Any PTO Lately?

Original post benefitspro.com

Americans might be workaholics, but not necessarily because they’re in love with work. Studies show Americans yearn for vacation time, but some of them can’t bring themselves to take it.

A survey commissioned by Namely, a payroll and benefits company, finds that a majority of U.S. workers intend to take 15 days of vacation per year. It also found that 40 percent of employees have or would be willing to sacrifice pay to gain more paid time off. Similarly, more than two-thirds of workers said that vacation policies were at least somewhat critical when considering a new job.

But as a statement accompanying the survey from the company points out, another recent study found that the average American worker only take 11 days off per year.

The lower average is largely driven by the fact that many employees receive far less than three weeks of vacation a year, but there is some evidence to suggest that some workers who are entitled to generous PTO do not make use of it.

A quarter of  workers in the Namely survey cited strict company policies as an obstacle to taking vacation, while a fifth cited “stress at the thought of missing time at work” and 16 percent reported a “negative perception” in their organization of taking time off.

“What this tells us is that despite the best intentions to take large chunks of time away from work and unplug from technology, employees are feeling confined and are using vacation time differently than previous generations,” said Matt Straz, founder and CEO of Namely.

In recent years, a number of major companies have made a point of offering generous vacation benefits. Some offer unlimited vacation, while others have put in place policies to encourage workers to make use of their vacation, including bonuses for taking time off.