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Colonial Life surveyed more than 650 human resource managers and benefitsadministrators at the recent national conference of the Society for HumanResource Management. Employers were asked about the benefits they provide andhow much their employees understand those benefits.

More than 90 percent of employers who responded said it was important totheir business that employees understand and appreciate the value of theirbenefits. Only 21 percent of employers think their employees have a goodunderstanding of their benefits. Nearly 5 percent think their employees knownothing at all about their benefits.

"These findings are critical for all employers, but we aren't surprised,"said Tom Gilligan, senior vice president for Colonial Life. "Employers whohave implemented a benefits communication plan have been telling us for yearshow important that has been for the bottom line.

"Employees who have been properly educated about their benefits tend tostay on the job longer than those who don't understand their benefits,"Gilligan concluded, pointing to other surveys about employee benefits.

Research has shown that employee loyalty and morale are directly tied tothe benefits they receive. The more employees know about those benefits, themore likely they are to be happy in their jobs.

In a research study conducted by Watson Wyatt Worldwide(1), a globalconsulting firm that specializes in employee benefits, employees gave highermarks to employers who provided fewer benefits but explained them well, ratherthan a richer array of benefits they didn't understand.

In similar studies conducted by MetLife(2), workers indicated thatbenefits were one of the primary reasons they are loyal to their employers.Employees ranked benefits second only to salary as the most important factorin determining how long they stay on a job.

Colonial Life asked employers about the methods they use to communicatewith employees and found:

-- 90 percent of employers said having one-to-one meetings would significantly improve employees' understanding of their benefits but only 58 percent of employers offer them -- 80 percent use employee group meetings to explain their benefits -- 44 percent have employees enroll for benefits using the Internet -- 40 percent of employers require employees to self-enroll for their benefits Colonial Life offers benefits communications at no additional cost toemployers as part of its package of voluntary insurance programs. When anemployer offers Colonial Life insurance, a benefits representative withColonial Life will meet individually with each employee and review allbenefits, not just the ones offered by Colonial Life. A benefitsrepresentative will explain to the employee the features of major medical anddental insurance, retirement plans, vacation and all other benefit programsthat may be offered by the employer, including any voluntary benefits offeredthrough Colonial Life.

Colonial Life's benefits communication services provide not only financialsavings to employers, but also save time for the human resources department.

For more information about benefits communication, call Colonial Life at(803) 798-7000 or visit www.coloniallife.com.

About Colonial Life

Colonial Life & Accident Insurance Company is a market leader in providinginsurance benefits for employees and their families through their workplace,along with individual benefits education, advanced yet simple-to-useenrollment technology and quality personal service.

Colonial Life offers disability, life and supplemental accident and healthinsurance policies in 49 states and the District of Columbia. Similarpolicies, if approved, are underwritten in New York by a Colonial Lifeaffiliate, The Paul Revere Life Insurance Company. Colonial Life is based inColumbia, S.C., and is a subsidiary of Unum Group.

(1) WorkUSA Survey, Watson Wyatt Worldwide, 2005

(2) Sixth Annual Study of Employee Benefits Trends, MetLife, 2008

SOURCE Colonial Life