Employers urged to review employee benefits

Jamaican employers are being urged to regularly review their employee benefits programmes to ensure they continue to meet the needs of workers and the wider organisation.

Insurance brokerage Fraser Fontaine & Kong Ltd (FFK) says changing workforce expectations, rising health costs and challenges in retaining talent make it important for companies to reassess their benefits beyond simply viewing them as an employment perk.

“Having an employee benefits programme is only the starting point,” said Satish Iyer, senior vice-president, Employee Benefits at FFK.

“Employers also need to understand whether employees value and understand the benefits being provided, whether the programme continues to meet their needs, and whether the organisation is receiving meaningful value from its investment.”

FFK is recommending that employers conduct periodic Employee Benefits Health Checks to assess areas including group health coverage and utilisation, claims experience, emerging cost pressures, employee understanding and participation, pension and retirement provisions, and protection gaps.

The brokerage also said employers should examine how well existing benefits are communicated to employees, whether they remain aligned with workers’ needs, and their role in attracting and retaining talent.

According to FFK, some organisations may continue to maintain benefits programmes that were designed for an earlier workforce environment without reassessing whether employee needs, business priorities or market conditions have changed.

The company said communication should be a key part of any review, as employees may not always understand the benefits available to them or how to access them.

“An employer may be making a significant investment in its benefits programme, but if employees do not understand what is available, how to access it or the value it provides, some of that investment can be lost,” Iyer said.

FFK said reviewing a benefits programme does not necessarily mean employers need to increase spending.

Instead, it said companies should examine how existing resources are being allocated and whether adjustments could provide greater value to employees and the organisation.

“Employee benefits ultimately exist to protect people,” Iyer said. “But a well-structured programme can also contribute to a stronger employee value proposition and a more resilient workforce. That is why the benefits conversation increasingly belongs at the strategic level of an organisation.”

FFK is encouraging employers to conduct reviews throughout the year rather than relying solely on renewal periods to identify changing employee needs, gaps in coverage and opportunities to improve the value of their benefits programmes.