At TBC Benefits, we believe that a strong employee benefits program is more than just a checklist of offerings. It’s about making decisions that lead to better outcomes for both employers and employees. And the key to designing these impactful programs lies in understanding how people make decisions.
By applying principles from behavioral science and marketing psychology, we help companies craft benefits strategies that employees not only understand but truly value. Our approach helps you build a benefits program that is not only cost-effective but also fosters greater employee satisfaction and retention.
How you communicate the benefits of your program makes all the difference. In the world of employee benefits, framing can influence the way employees perceive the value of their plan.
Positive framing makes a bigger impact:
“Improve retention through smarter benefits” resonates more than “reduce churn.”
Both messages lead to the same result, but framing them positively is more engaging.
When you focus on the benefits, rather than the problems, employees feel more inspired and motivated to engage with your offerings.
Cost is often a major barrier to employee participation in benefits programs. Large, one-time costs can seem intimidating. That’s why it’s crucial to break down the numbers into more manageable, digestible parts.
Frame costs in smaller, manageable pieces:
“$250 per employee per month” feels much more approachable than “$3,000 per year.”
This breakdown makes the cost feel like a manageable, ongoing commitment instead of a significant one-time expense.
By presenting costs in a way that feels approachable, employees are more likely to see the value and participate.
Too many options can overwhelm employees, leading to decision fatigue. The key is to offer a curated selection of options.
The rule of three (or two):
Offering three distinct options—low, mid, and high tier, or offering two options, low and high.—can create clarity and makes it easier for employees to decide.
Research shows that when presented with three most employees tend to pick the middle option—it feels balanced, safe, and smart.
This approach not only simplifies decision-making but also ensures that employees can easily find a plan that aligns with their needs.
When employees feel like they have a hand in shaping the benefits plan, they are more likely to buy in and stay engaged with the program.
Engagement is key:
Involve HR teams and employees in shaping the benefits offerings to increase buy-in.
The more employees contribute to the design, the more likely they are to value the final outcome.
This collaborative approach fosters a deeper connection to the benefits and ensures that the plan meets employees' needs.
The principle of contrasting helps highlight the value of your benefits offerings by comparing them to industry standards or less attractive alternatives.
Show the difference:
By presenting your benefits plan alongside less competitive options, employees can see the clear advantages of your plan.
The difference between options is more apparent when shown side by side.
This method makes the benefits plan more appealing by showcasing its superior value.
Anchoring is a powerful psychological principle where the first number or price presented becomes the benchmark for comparison.
Start with industry standards:
Begin by presenting a standard industry plan to set the reference point.
Once employees are familiar with this baseline, you can then tailor the benefits to meet their specific needs.
This approach builds confidence and helps employees feel secure in their choices, knowing that they are in line with industry norms.
People are more likely to value something once they can visualize its impact. This principle, known as the endowment effect, is crucial in decision-making.
Visualize success:
When employees can imagine themselves using a benefits plan and seeing its impact, they are more likely to engage with it.
For example, imagine employees thinking, “These are the best benefits we’ve ever had”—that’s the result of a well-communicated plan.
This step ensures employees can see the benefits in action and strengthens their connection to the program.
Having the right plan is important, but how it’s communicated makes all the difference. Guidance through the decision-making process is what sets great plans apart from the rest.
Expert guidance is key:
At TBC Benefits, we don’t just provide benefits—we guide your team through every step.
Helping employees understand the options and make the right choice is essential for a successful benefits program.
A well-communicated benefits strategy ensures that employees are not only informed but also empowered to make decisions that benefit them.
Smarter employee benefits strategies don’t just happen—they are designed with a deep understanding of how people think and make decisions. By applying principles from behavioral science, TBC Benefits helps you build benefits programs that employees not only use but truly value.
Framing the conversation right, simplifying choices, and guiding employees through the process all work together to improve engagement, retention, and satisfaction.
By working with TBC Benefits, you’ll ensure that your benefits strategy drives results for both your employees and your business.
If you’re ready to build a benefits program that works for your employees—and your business—contact TBC Benefits today to learn more.