Helping Employees Understand and Appreciate Their Employee Benefits

Employee benefits are a crucial part of any compensation package when it comes to recruiting and retaining top talent. Yet many employees don’t fully understand or appreciate the value of what’s being offered (and paid for, in part) by the employer. This lack of awareness can lead to underutilization, frustration, and even employee turnover.  

To build a more engaged and satisfied workforce, it is important for HR professionals to ensure that employees comprehend and value their benefits offerings. Through creative and actionable communications initiatives, employees will appreciate the value of their benefits, value their employer and HR support teams to a greater degree, and be inspired to be better consumers of healthcare.

Why Employee Benefits Education Matters

There is a direct correlation between employee satisfaction and retention. One primary contributor to that satisfaction is a comprehensive benefits package to complement other forms of compensation (in addition to company culture, job satisfaction, and other factors).  

When executed effectively, corporate communication has the ability to have a significant impact on these representations of the overall employee/employer relationship:

1. Boosts Employee Retention & Satisfaction – Employees who recognize the value of their benefits are more likely to stay with the company and feel satisfied with their overall compensation package.
   

2. Enhances Recruitment Efforts – A strong benefits package is a competitive advantage in the competition for talent. Candidates who understand what’s being offered are more likely to accept a job offer—and endeavor to keep it.
   

3. Reduces Confusion and Frustration –  Many employees find complex benefit options challenging to navigate. Clear communication minimizes confusion and helps them make informed decisions.
   

4. Encourages Smart Benefit Utilization – When employees fully understand their options, they are more likely to use preventive care, wellness programs, and other valuable resources that can impact the company’s bottom line.

11 Key Actions HR Can Take to Improve Employees’ Benefit Understanding

As a rule of thumb, our recommendations are to be proactive, be nimble, keep it simple, and welcome employee feedback. Here are 11 actions your team can take this year to maximize awareness and employee engagement:

1. Communicate Year-Round, Not Just During Open Enrollment

Don’t wait until open enrollment to talk about benefits. Keep the conversation going throughout the year with regular reminders, updates, and educational materials to ensure employees stay informed and engaged all year long.

2. Establish a “Single Source of Truth”

Provide an easily accessible online portal or mobile app where employees can find all benefit-related information in one place. Establishing a “Single Source of Truth” ensures consistency, eliminates confusion, and allows employees to access resources as needed and on demand. A user-friendly digital experience can significantly improve understanding and utilization as well.

3. Use Simple, Clear, and Engaging Educational Materials

Avoid complex jargon and overly technical language. Consider the use of infographics, videos, and easy-to-read FAQs to make benefits simple to understand. Consider short, engaging presentations or interactive digital tools to simplify key concepts.

4. Leverage Technology  

While many employees don’t have access to a computer, they do have access to their phones.  Meet them where they are. Ensure your communications are mobile-friendly. People have come to rely on accessing information through their phones. Leverage other digital tools such as texting platforms, video, and microsites to make information immediately accessible.  

5. Seek Input  

Conduct a series of employee focus groups or send out a survey to get a better sense of how employees like to learn about their benefits (i.e., their channel preferences), as well as uncover any areas of misinformation, confusion, and gaps of understanding to help inform future educational needs.  

6. Create Benefit Campaigns and Leverage Peer-to-Peer Testimonials

One creative idea to foster greater engagement is to identify and amplify your internal benefits “ambassadors.” For example, launch quarterly benefit campaigns intended to educate employees about their benefits in an engaging manner. Showcase under-utilized benefits, address common myths, or highlight ways employees can maximize their benefits. Share testimonials and real-life examples of how employees have benefited from using different benefits, resources, and programs. Personal stories, as told by one’s peers, resonate more than top-down edicts and help others see the practical value of their benefits through others’ experiences.

7. Create Hand-On Experiences  

Encourage leaders and managers to discuss benefits with their teams. Hosting wellness challenges, vendor meet-and-greets, lunch-and-learns, or benefits fairs can make learning about benefits more interactive and engaging. Consider offering free health screenings, flu shots, or mental health check-ins to raise awareness for, and encourage engagement with, benefits that are available to employees.

8. Use Multiple Communication Formats to Suit Different Learning Styles

Recognize that employees learn differently which means you need to cater to a multitude of communications preferences. Some prefer videos, while others retain information better through the written word. Offer benefits information in various forms and formats, including videos, written guides, and interactive tools, in order to accommodate these different learning preferences. One size rarely fits all.

9. Provide Personalized "Hidden Paycheck” Statements

Help employees understand that their total compensation includes much more than their paycheck.  Reveal the “hidden paycheck”   providing personalized statements that not only put a dollar value to key benefits but provides a break down of what the company pays for the given benefit versus what the employee pays. . This transparency helps employees appreciate the financial investment the company makes in their overall wellbeing. This often gets overlooked and underappreciated if not communicated clearly and consistently. Don’t assume that everyone fully understands how the company is contributing to their total compensation and welfare.

10. Increase Manager Involvement

Make it easy for managers to help get the word out to their respective departments and direct reports. We have some clients that provide benefit toolkits, explaining to managers what they need to know, do, and communicate to their teams. Embed benefits education into all new-hire onboarding and look for ways to reinforce that orientation throughout the employee’s first six months with the company—and beyond! While it’s important to communicate benefits during onboarding, realize that the new hire will be overwhelmed reacting to a flood of information all at once, and the valuable information must be reinforced as the employee settles in.

11. Be Proactive with a Communications Strategy and Editorial Calendar

Don’t leave benefits communication to chance. Instead of being reactive,  develop a comprehensive strategy and an editorial calendar that will keep the team organized and accountable to plan and deliver benefit updates, reminders, and educational content throughout the year. A proactive approach always results in more consistent engagement and maximizes employee understanding.

Don’t “Set It and Forget It”

The HR team plays a vital role in ensuring employees understand and value their benefits. It can’t be overstated how important it is to keep team members informed and engaged so that the company can recruit the best of the best…and keep them from being tempted away by competitors who seemingly offer more generous benefits options. This can’t be accomplished by a single orientation, lone employee handbook, nor sporadic, reactive communications one-offs.

By proactively communicating, simplifying information, and personalizing the experience, organizations can enhance employee appreciation, engagement, and overall satisfaction. When employees truly understand their benefits, they feel more valued—and that leads to a stronger, more committed workforce.

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