More than 40% of employers plan to change their employee benefits plans in the next 12 months, according to a survey of employers conducted by Colonial Life & Accident Insurance Co.

About half of employers say the economy has affected the benefits they offer their employees, according to the survey of more than 750 human resource managers and benefits administrators at the Society for Human Resource Management Annual Conference in New Orleans in July.

About 26% of employers increased the contributions required of their employees, 12% eliminated benefits and another 12% offered employee-paid voluntary options.

Just 10 % of survey participants added benefits, while 9% increased employer contributions.

Tom Gilligan

“Today’s economy is forcing employers to make tough decisions regarding their benefits plans,” says Tom Gilligan, senior vice president for Colonial Life. “They’re trying to strike a delicate balance between meeting employee needs and controlling costs.”

As benefits get tweaked, employers say they continue to see the need to keep their employees knowledgeable about their benefits packages and its value. More than 92% of employers surveyed said it was very important to their business that employees understand and appreciate the value of their benefits. However, less than 19% of employers think their employees have a very good understanding of their benefits. Nearly 5% said they think their employees know nothing at all about their benefits.

“Employers recognize that employee benefits have a profound impact on morale and job satisfaction,” Gilligan said. “However, they don’t have the resources or time to effectively educate employees about their benefits. Making benefits communication a strategic business priority is a real challenge.”

To address the need for a better understanding, nearly 90% of employers think having one-to-one meetings between a benefits counselor and each employee would significantly improve their employees’ understanding of their benefits.

More than 60 percent of employers say they would consider adding employee-paid voluntary benefits to enhance their benefits plans. “More and more employers are discovering the advantages offered by voluntary benefits,” says Gilligan. “Partnering with a company that can enhance the education and communications process at no cost to employers just makes good business sense in today’s economy.”