Offboarding non-medical benefits for transitioning employees — whether that be through retirement or a job change — can be an enormous task for HR administrators and they can use some help to alleviate that burden.
Employers spend about 14 hours per month offboarding non-medical benefits, according to a recent survey from Prudential, costing employers $20,000-$50,000 per year. Additionally, nearly eight in 10 employers say a good offboarding experience is important to their brand reputation.
Read More:
PruPassages from Prudential Group Insurance can help employers reduce this workload, while also helping employees make informed decisions on which benefits to keep as they transition from their current employer.
“Once an employee terminates their employment,we're taking on all of that work,”says Leston Welsh, head of business segments at Prudential Group Insurance. “The employers themselves are not experts in handling those questions, so we're sending out the notices and answering all of the questions that are coming back from that employee.”
Read More:
PruPassages was originally launched in 2017, following a pilot program the year before. Now, with more job opportunities flooding the market, Prudential is seeing greater demand for this program, as employers are dealing with high turnover rates. Prudential expects the number of employers who use PruPassages to double to 2.4 million employees by the end of the year.
While Prudential initially set out to help reduce the administrative burden employers deal with, the benefit will also help departing employees make informed decisions regarding benefits like life insurance and disability insurance and how to move them to a new job or into retirement.
Read More:
“Transitioning employees are going through a life event, and for most folks, they're not financial professionals who really understand the benefits,” Welsh says. “ It's really about the employee, and helping them make an informed decision on where they want to maintain coverage and getting that real peace of mind.”
