Building Better Employee Benefits Communications
Building Better Employee Benefits Communications
Author
Patrick T. Leary, M.B.A., LLIF
Corporate Vice President Workplace Benefits Research
LIMRA and LOMA
November 2024
The new world of work presents new challenges in connecting workers with the benefits coverages they need. Historically, benefits education, enrollment and delivery were part and parcel of a fairly standardized process. Carriers were able to deliver benefits and cover workers at scale. Worksite marketing was considered a cost-effective way to provide coverage to middle-market consumers, many of whom would not otherwise have access to the products and services typically provided through employee benefits programs. LIMRA research confirms that many workers rely all or in part on workplace benefits to address their insurance, retirement and related protection needs.
The workplace remains an important access point for workers to obtain insurance, retirement savings and related benefits. Effective benefits communication is essential to the success of any workplace benefits program, especially in the new world of work. Yet one of the primary challenges that the industry faces is the lack of understanding among employees regarding the benefits available to them. This lack of understanding can make workers hesitant to enroll in benefits if they don’t have a firm understanding of the product, what it covers and how much it costs.
Figure 1. Employee Understanding of Workplace Benefits
Not at all |
Somewhat |
Very well |
Not available from my employer |
|
Medical insurance benefit(s) |
2% |
33% |
57% |
8% |
Retirement savings plan(s)* |
6% |
31% |
53% |
10% |
Dental insurance benefits |
4% |
32% |
52% |
12% |
Other nonmedical insurance benefits** |
9% |
44% |
33% |
14% |
Wellness services *** |
11% |
42% |
26% |
21% |
*401(k), 403(b), etc.
**life insurance, disability insurance, etc.
***financial, physical, behavioral education and services
A number of reasons are preventing workers from having a better understanding of their benefits, many of which have been exacerbated by the disconnect that remote and hybrid work models create. Many workers say that they do not have adequate time to review the enrollment materials to make good decisions about the benefits offered. Related, many also cite the growing complexity of benefits. Others say that not enough information is provided or that the information is not communicated effectively. All of these reasons point to a common theme: Current benefits communication methods are outdated and do not account for the evolution in benefits offerings or how consumers gather and absorb information. Benefits education and communication materials need to highlight the features, costs and other critical information that employees need to make an informed decision in a contemporary, streamlined way.
Traditional delivery models need to change to align with the realities of today’s workplace. Many workers are no longer physically located at their place of employment. This is especially true of white collar, executive and other occupations that have successfully transitioned to remote or hybrid work arrangements. While remote and hybrid work models have several advantages, it disconnects workers from their employers and presents new challenges in aligning and delivering benefits that meet the needs of today’s workers. This has forced carriers and other workplace benefits providers to evolve and adapt, leveraging technology and decision-support tools to educate and enroll workers in contemporary ways.
Many workers also point to their employer and the role they play when it comes to the struggles they face in understanding their benefits. The research finds that many workers feel that their employer does not do a very good job communicating their benefits to them, with fewer than half saying that their employer communicates commonly offered benefits “very well.”
Figure 2. How Well Does Your Employer Communicate the Following Benefits?
Filter the data in this chart by clicking on a color bar in the chart legend.
*401(k), 403(b), etc.
**life insurance, disability insurance, etc.
***financial, physical, behavioral education and services
Employers commit significant resources and effort into building benefits packages to attract and retain workers. However, it would seem that employers lose focus and do not follow through on effectively communicating their benefits to their employees. Workers value their benefits and ensuring that they know about and understand the benefits that are available to them will help employers attract and retain the best workers. As such, employers have a vested interest in promoting their benefits packages to their workers.
How can benefits communication be improved? Workers highlight several areas that they feel will provide them with better awareness and understanding of their benefits. These include providing:
- Material that is easier to understand
- Information that is specific/applicable to them
- The opportunity to meet with a company or human resources representative
- More frequent communication
- Better interactive online or other digital tools
Workplace benefits are a critical component of an employer’s value proposition as they look to attract and retain employees. However, offering the benefits are not enough. A contemporary benefits communication strategy powered by technology will help today’s workforce understand and appreciate their benefits and provide them with the coverages they need.
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Building Better Employee Benefits Communications
