Most workers underestimate how much companies fork over to maintain benefits, according to a recent survey by Fidelity Investments.

The majority (53%) of employees think their companies pay less than $5,000 annually per worker to provide health insurance — when in fact, companies typically pay between $5,000 and $15,000 per person each year.

The good news: 72% of workers still think they’re getting benefits as good or better than what other companies are offering. But the bad news is they feel the value is decreasing — 61% of employees say they’re paying more for benefits and getting less or the same as a year ago.

Since healthcare and other benefits play a big role in people’s employment decisions, making sure everyone understands the value of what you’re offering is key to hanging on to the best employees.

For effective benefits communication, experts recommend HR and plan administrators skip the jargon and relay information in simple terms that touch on employees’ emotions.

Make sure employees fully understand their benefit plans.

Employees who say they’re well-educated about their benefits are 30% more likely to be satisfied with the plan, according to a survey by Univers Workplace Benefits.

Also, companies with employees who are knowledgeable about their benefits are 67% more likely than other employers to report turnover below 20%.

Open enrollment time gives you a great opportunity to spread the word and increase knowledge. Experts recommend these three communication strategies:

• group enrollment kits
• one-on-one meetings with HR or benefits staff, and
• paper enrollment kits.

Also, HR or benefits staffers can hold periodic meetings when any changes occur, or just to answer any employee questions.

The inability to communicate effectively.

Problems often arise with newly promoted supervisors who struggle to make the transition into the new position. They aren’t necessarily bad bosses or bad communicators — they just aren’t used to the role.

Here are some helpful reminders you can give to those novice managers to avoid a communication breakdown:

• Make sure to relay news from above – Especially in today’s climate, employees are desperate for word about their company’s future. If managers don’t give workers news quickly, they’ll hear it somewhere else — and wonder why their boss didn’t tell them.
• Give feedback often – No employee should hear about a problem for the first time during an annual performance review. But keeping those issues under the lid for too long is one of the most common mistakes new managers make.
• Don’t overuse e-mail – New bosses love e-mail — it’s quick, easy and it keeps you from having difficult conversations with an employee face-to-face. However, employees appreciate it when their boss takes the time to discuss important issues in person.
• Meet regularly – A common tool that can help a novice supervisor: weekly or bi-weekly staff meetings. Many departments schedule them anyway, but if not, a manager can start holding them in order to learn about the staff’s questions and concerns.

Companies are under pressure to cut staff, but experts warn they need to make decisions carefully to keep the company successful down the road.  HR is in a good position to help decision makers step back and see the big picture and consider the long-term impact layoffs can have.

No companies want to lay people off, but these days there are few options. Almost 60% of employers say they’ll reduce staff this year, according to a recent PBP Media survey.

Despite the cost-savings, they’ll likely face a host of new challenges — experts warn organizations to consider the hidden costs of layoffs. For example, those who are left behind may be less productive and make more mistakes.

That’s not to mention all the tricky legal issues.

To keep those problems at bay, here are some of the mistakes organization can avoid during the decision making process:

1. Fail to consider alternatives – Some organizations have found they can save enough money by cutting hours, freezing salaries and hiring, or just getting rid of a few non-performers. All options should be considered before determining what’s appropriate.
2. Lose the wrong people – During restructuring, it’s imperative to hang on to top performers, high-potential employees and future leaders. Managers need to identity who they are and keep them on board — those are people companies can’t do without, no matter what the economic climate.
3. Don’t communicate transparently – Many companies hold off on giving employees any news until they have an exact picture of what the future will bring. But remaining silent during tough times only makes it harder to manage layoff survivors. One strategy: Hold regular meetings and let staff ask questions. Even if there are no answers yet, employees will at least feel like the company’s listening.
   
4. Use the wrong words – Managers often sugarcoat bad news by using euphemisms instead of saying what they really mean. But so everyone is on the same page, all company communication should use the proper terminology: “Furlough” refers to a temporary unpaid vacation or a reduction in employees’ hours. “Layoff” implies eliminated staffers will be called back once business picks up again. Permanent staff cuts are generally referred to as a “reduction in force.”
5. Think top employees will stay just because of the economy – Even as companies are cutting staff, they can’t forget about their retention efforts. Despite the rough market, nearly 20% of employees plan to look for a new job this year, according to a CareerBuilder survey. That number’s likely higher for employees who have survived cutbacks.
6. Forget all applicable regs – The federal WARN gives firms guidelines on handling layoffs, but many states and localities have even harsher restrictions. Make sure all managers and execs have a clear picture of what’s on the books in your area.
7. Neglect to guide first-level managers – When managers decide who stays and goes, some may take the chance to get rid of employees for unlawful reasons. That’s why supervisors need plenty of guidance from the top and sufficient review of their decisions.

Due to the struggling economy, 60% of employers plan on cutting staff within the next 12 months, according to a new survey by the Society for Human Resource Management.

Employees likely to be affected include:

• people in technical/professional positions (13% of companies plan to lay off some of those employees)
• unskilled workers (13%), and
• administrative employees (11%).

Least likely to be laid off are executives (1%), salespeople (3%) and middle managers (6%).

In addition, 48% of companies reported having cut staff in 2008.

The survey also reveals details about how companies are handling the logistics of the cutbacks:

• 74% of employers offer severance pay to laid off employees.
• 28% offer career counseling.
• At companies that cut staff in 2008, 59% informed the affected employees in a one-on-one meeting with a supervisor and HR rep.
• When employees were laid off, remaining employees were informed through group meetings (64%), mass e-mails (22%), or through informal conversations with managers (21%).

Answer: precious silence.

That’s the word from a new survey by the Novations Group. Almost half (44%) of HR execs said their company’s management spends too much time talking to employees.

One of the biggest methods of overkill: “constant repetition through multiple channels.” In other words, giving an instruction in person, repeating it via e-mail, following up with a phone call, etc.

In contrast, only 3% of the execs said managers spend too much time listening to employees — which likely means a good chunk of them don’t listen enough.

Why should HR care? Good communication can go a long way toward making sure top performers are happy in their jobs.