As revealed by 30 for 30’s “Broke” and HBO’s new show Ballers, many professional athletes “go broke” after their playing days are over. They just don’t know what to do with all that money – and sometimes owning a car wash just isn’t a great investment. That’s why Jeff Fisher, head coach of the St. Louis Rams, requires mandatory financial counselling before his NFL draft picks are allowed to sign their contracts. And there’s an HR lesson to be learned from it.
Today, competitive companies offer strong retirement and health care plans. But they’ll go to waste if employees don’t understand the benefits they’re receiving or how they’re a reflection of the way you value their services. Taking steps to explain the ins and outs of the 401ks and health care plans can make all the difference.
Your Position: Strong Savings
Like a rookie NFL player that’s trying to earn a spot in the league, it can be hard for young employees to care about retirement. Age 67 is just so far away, and they may not realize that $10 per month just doesn’t add up to a comfortable life after work. And if they don’t understand the options, they’ll never be able to put them to full use. Bring in a financial advisor to brief the team on the following items:
- Pre-tax and Roth 401(k)s
- The difference between a mutual fund and an index fund
- Targeted retirement funds
- Social security’s future
- The importance of saving early and often
- Employer match (and why your number is competitive)
Calling the Right Health Care Play
Young people have a tendency to feel “invincible,” especially if they don’t feel the need to see the doctor. But just like a quarterback that holds the ball for too long in the pocket, eventually they’ll have to see the doctor for their aches and pains. When that happens, they’ll need the right health plan and savings. An HR specialist can break down the options and actions employees should take to protect themselves:
- Choosing the right health care plan
- Deductibles and premiums
- In-network versus out-of-network costs
- Saving money in HSAs and FSAs
- Open market pricing comparisons – and how your company carrying a heavy load
Be Your Employees’ Benefits Coach
If your employees don’t understand the ins and outs of your benefits offerings, chances are they won’t value them either. That’s why you should take the time to show your employees how to use them. And you’ll need an engaging, user-friendly means of doing so.
By providing employees a clear and accessible means for understanding their total compensation, not only will they learn to appreciate their benefits, but they’ll also love how you took the time to explain the details.
Learn more about how the right on-demand software solution can enhance your workers’ understanding of their benefits playbook and lead you toward improved employee engagement and retention.