1. SHRM Survey Findings: State of Employee Benefits in the Workplace—Communicating Benefits
December 18, 2013

2. Introduction
This is part six of a series of SHRM survey findings examining employee benefits in the workplace.
The following topics are included in the six-part series titled State of Employee Benefits in the Workplace:
Part 1: Wellness initiatives
Part 2: Flexible work arrangements
Part 3: Health care
Part 4: Leveraging benefits to retain employees
Part 5: Leveraging benefits to recruit employees
Part 6: Communicating benefits
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

3. Key Findings
How knowledgeable are employees about their employer-sponsored benefits? The majority (80%) of organizations reported their employees were “very knowledgeable” or “somewhat knowledgeable” of the employer-sponsored benefits available to them.
Are organizations effective in informing employees about their benefits? Roughly three-fourths (79%) of organizations “strongly agree” or “somewhat agree” with the statement “My organization’s employee benefits communications efforts are very effective in informing employees about their benefits.” However, only about one-quarter (24%) of organizations had an employee benefits communications budget in fiscal year 2012.
What are the top employee benefits communications methods organizations use? The top three communications methods used by organizations are online or paper enrollment materials (82%), group employee benefits communications with an organizational representative (62%), and one-to-one employee benefits counseling with an organizational representative (55%).
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

4. Key Findings (continued)
Are organizations using social media as a platform in their employee benefits communications efforts? Very few organizations are using social media in their communication efforts. Overall, 3% of organizations reported using social media. Among organizations not using social media in their employee benefits communications efforts, 8% of organizations indicated they plan to start using social media within the next 12 months.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

5. What do these findings mean for the HR profession?
In this post-recession period of slow salary growth, some employers and HR professionals are using comprehensive benefits packages as a means to attract and retain talent. Consequently, clear communication about benefits has become important. Most HR professionals think their benefits communications are effective, but less than one in four (24%) had an actual benefits communications budget in 2012.
HR professionals have likely spent much time navigating the ins and outs of the Patient Protection and Affordable Care Act (PPACA). Given the complexity of the law, HR professionals should pay particular attention to health-care related benefits communications for the foreseeable future. And though some employers may choose to opt out of coverage and pay a penalty, some experts have argued that decision will have a negative impact on recruitment and retention. HR professionals appear to be aware of that already: More than four in five (81%) said health care is the most important benefit to the majority of their employees.
Most organizations are not using social media channels for benefits-related communications. However, that may change in the future, perhaps due to employers’ increased use of social media in other aspects of business operations, as well as workers’ increased comfort with those forms of technology. Only 3% of organizations reported using social media for benefits communications, but among those who do not use it, another 8% said they plan to start in the next 12 months.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

6. Focus and Knowledge of Benefits
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

7. Overall, how knowledgeable are your employees about the employer-sponsored benefits available to them?
Note: Respondents who answered “not sure” were excluded from this analysis. Percentages may not equal 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

8. How does your organization determine the knowledge level of employees about the employer-sponsored benefits available to them?
Note: Percentages do not equal 100% due to multiple response options. An asterisk (*) indicates that this response option was developed from open-ended responses in A double asterisk (**) indicates that data were not available for 2012 or 2013.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

9. Which benefit from your organization’s benefits package is the one that is most important to the majority (more than half) of employees?
2012
(n = 425)
2013
(n = 423)
Health care
84%
81%
Retirement savings and planning 4% 5%
Flexible working benefits 2%
Leave benefits 3%
Family-friendly benefits
Preventive health and wellness
Professional and career development benefits 1%
Housing and relocation benefits 0%
Other
Note: Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

10. In three to five years, which benefit from your organization’s benefits package do you think will be the one that is most important to your employees?
2012
(n = 416)
2013
(n = 418)
Health care
68%
67%
Retirement savings and planning 9%
11%
Flexible working benefits 7%
Family-friendly benefits 3% 6%
Preventive health and wellness 5%
Leave benefits 2% 1%
Professional and career development benefits
Housing and relocation benefits 0%
Other
Note: Respondents who answered “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

11. Communicating Benefits
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

12. How strongly do you agree or disagree with this statement, “My organization’s employee benefits communications efforts are very effective in informing employees about their benefits.”
Note: Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

13. Did your organization have an employee benefits communications budget in fiscal year 2012?
Note: Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

14. Did your organization’s fiscal year 2013 employee benefits communications budget increase, remain the same or decrease when compared with the fiscal year 2012 employee benefits communications budget?
Note: Only respondents whose organizations have an employee benefits communication budget in fiscal year 2013 were asked this question.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

15. Within the last 12 months, did your organization make any changes to your employee benefits communication materials?
Note: Respondents who answered “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

16. Which of the following employee benefits communications methods does your organization use?
2012
(n = 447)
2013
(n = 431)
Enrollment materials (online or paper)
84%
82%
Group employee benefits communications with an organizational representative
65%
62%
One-to-one employee benefits counseling with an organizational representative
51%
55%
Intranet
48%
46%
Newsletters (online or paper)
39%
34%
Direct mail to home/residence
41%
33%
Benefit fairs
26%
24%
Virtual education
13%
14%
Social media 4% 3%
Group employee benefits communications with your vendor -
Other 2% 9%
Note: A dash (-) indicates that this question was not asked that year. Respondents who answered “not sure” were excluded from this analysis. Percentages do not total 100% due to multiple response options.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

17. Within the next 12 months, does your organization plan to using social media as an employee benefits communications tool?
Note: Only organizations that currently do not use social media as an employee benefits communications method were asked this question. Percentages may not total 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

18. Organization Demographics
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

19. Demographics: Organization Staff Size
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

20. Demographics: Organization Sector
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

21. Demographics: Organization Industry
Percentage
Professional, scientific and technical services
21%
Health care and social assistance
17%
Manufacturing
15%
Government agencies
12%
Finance and insurance
10%
Educational services 9%
Religious, grantmaking, civic, professional and similar organizations 5%
Accommodation and food services 4%
Administrative and support and waste management and remediation services
Construction
Mining
Transportation and warehousing
Arts, entertainment and recreation 3%
Information
Retail trade
Real estate and rental and leasing 2%
Repair and maintenance
Utilities
Whole trade
Agriculture, forestry, fishing and hunting 1%
Personal and laundry services
Other 7%
Note: n = 375. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013

22. Demographics: Other
Is your organization a single-unit organization or a multi-unit organization?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
Single-unit organization: An organization in which the location and the organization are one and the same.
39%
Multi-unit organization: An organization that has more than one location.
61%
U.S.-based operations only
80%
Multinational operations
20%
n = 381
n = 381
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
What is the HR department/function for which you responded throughout this survey?
Corporate (company-wide)
73%
Business unit/division
16%
Facility/location
11%
Multi-unit headquarters determines HR policies and practices.
59%
Each work location determines HR policies and practices. 4%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices.
37%
n = 244
n = 244
State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013

23. SHRM Survey Findings: State of Employee Benefits in the Workplace—Communicating Benefits
Survey Methodology
Response rate = 11%
441 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey
Margin of error +/- 5%
Survey fielded May 3-22, 2013
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

24. Additional SHRM Resources
Benefits Communication Resource Page
Open Enrollment Resource Page
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

25. About SHRM Research
For more survey/poll findings, visit For more information about SHRM’s Customized Research Services, visit Follow us on
Project leaders:
Christina Lee, researcher, SHRM Research
Project contributors:
Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, manager, Survey Research Center, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013

26. About SHRM
The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2013