How To Improve Communication of Employee Benefits

In recent years, studies of company benefit communications have yielded a common theme – and employers are not going to like it any more than workers do. Aon’s new 2024 Global Benefits Trends study summed it up in no uncertain terms:

“Current efforts are underwhelming, uncoordinated, and ineffective.” 

One reason for this is because many employers are still not taking advantage of digital solutions that are widely available (e.g., benefits apps, virtual meetings, video messaging). Adopting a broader array of communication vehicles can improve reach and better explain benefits to workers. According to Aon’s research, more than 80% of employers admit that their workers do not fully understand their benefits, including large, mature companies and those in progressive and high-tech industries.

A 2023 Employee Benefit Trends Study conducted by MetLife revealed that:

• 45% of workers do not fully understand all elements of their benefits package
• 50% would feel more valued by their employer if benefits were better communicated
• 54% would like personalized recommendations
• 60% regretted the benefit choices they made due to a lack of understanding or information

The desire for better clarity is particularly high among Generation Z, who are new to the responsibility of choosing benefits and have had less exposure to long-form written documents. They grew up on quick, informative sound bites. Their minds, through no fault of their own, are trained differently.

An Aflac survey also confirmed that nearly half of workers feel that poor benefits communication reflects their employer’s lack of care. It is possible to infer that the company wants to frustrate and alienate workers from choosing benefits in order to save money.

Improvement Strategies

Fortunately, there are ways to improve this situation. Some of the issues stem from the lack of  expansion to electronic communication vehicles. As avenues of communication broaden, it gives people more options and they develop preferences. Part of this is generational – younger adults prefer electronic vehicles while Boomers are comfortable with printed materials. However, this is not the only distinction.

Many young people prefer face-to-face conversations, interestingly enough. This is largely due to their unfamiliarity with benefits which, let’s face it, are far more expansive and complicated than back when Boomers started their careers. In-person interactions enable workers to ask specific questions and follow-up queries. They are also generally more productive than chatting with a bot that has limited information and non-intuitive responses.

But also consider that introverts, regardless of age, may prefer chatbots and reading materials more than extraverts. Note that the sheer number of worker preferences is vast and varied, and nearly all of them (89%, according to a recent workplace study by LegalShield) would prefer tailored communications that highlight their specific needs and interests.

The good news is that the combination of today’s technology and human resource diversity can help deliver a higher level of customization. Employers should provide standardized benefit packages in both print and electronic forms, but offer additional resources designed to meet individual preferences.

For example, ensure that your HR staff reflects your workforce, in age, gender, race, and ethnicity. Empower them to use their background and expertise to improve benefits communications. For example, let younger HR personnel take the lead on developing newer digital communication strategies. Furthermore, once they understand the benefits, they can write about them in language that their peers will understand. This may also be true for gender and race – brainstorm with staffers to generate ideas addressing cultural differences that may be incorporated into benefit descriptions and personalized recommendations.

While it helps to have experienced communicators who have worked on benefits for years, recognize that standard wording may make perfect sense to an HR expert but be confusing to workers, particularly Gen Z. Remember, writing in simplistic terms alienates no one and appeals to everyone. 

Also consider training and assigning HR personnel who closely match specific demographics to respond to questions via video or other like-minded response mechanisms (e.g., text, email, phone call). For example, let a Millennial staffer address a question that tends be asked by Millennial workers. This is a customization strategy that enables workers to engage with personnel who inherently understand their needs.

Recognize that new hires are bombarded with an overwhelming amount of information, so benefits may take a backseat to learning what is expected of them in the job. While offering a comprehensive guide on day one may be prudent, prioritize benefits that need to be selected right away. If possible, remind them to sign up for lifestyle-oriented and/or voluntary benefits at least a week before their 30-day window expires.

Consider the following benefit communication tactics:

• Conduct in-person group meetings; specifically invite remote workers into the office or to watch via video-conference
• Offer short, benefit-specific workshops, webinars, Q&A sessions or vendor panels so that workers can select from options in order to better manage their time
• Make open enrollment fun: Host a yoga session or group walks around the campus to emphasize health and wellbeing benefits
• Explore gamification options to engage workers and motivate them to use benefits throughout the year; enable workers to earn points for activities and redeem them for prizes
• Offer the ability for workers to schedule a one-on-one call, video chat, or in-person meeting with HR personnel
• Provide access to a live representative dedicated to answering benefit questions all year round
• Highlight changes to benefits and new benefits offered during open enrollment (e.g., a bulleted cover sheet, splash page, on-site signage)
• Send benefit reminders and due dates via email, text, splash landing pages, app notifications, on-site signage, social media platforms, etc.
• Send targeted benefit reminders throughout the year to encourage utilization
• Maintain a running log of questions asked by workers, including their demographic information when possible (e.g., gender, age range, location, race, ethnicity)
• Utilize the ability to quickly generate short in-house videos that address common questions; align the HR speaker with demographics, when appropriate; make these videos available online, on demand, categorized and searchable by issue
• Offer customized benefit recommendations based on age, gender, and life events with sample profiles (via printed flyers and online links)
• Develop an online questionnaire to generate a unique benefit recommendation based on worker answers
• Share price hikes that have caused an increase in benefit premiums over the previous year – and show how those costs are split between the company and workers (employer transparency is valued now more than ever)
• Emphasize money savings opportunities via examples and benefit comparisons
• Illustrate how each financial savings vehicle offered builds over time through regular contributions
• Show relevance – promote which benefits are most appropriate at different stages of life (e.g., paying for college/student loans, saving to buy a house, starting a family, caregiving for family members, planning for retirement, etc.)

Benefits To Employer

In 2021, a Pew Research survey found that 43% of respondents left a job because the benefits were not good enough. But was that really the problem? In the movie, Field of Dreams, the catch phrase purported that “if you build it, they will come”. However, the film was mystical, evidenced by the fact that Kevin Costner’s character didn’t even advertise.

Benefits, by contrast, require clear communication and non-stop promotion. Employers must do a great job of communicating benefits or workers may miss deadlines, make unsuitable selections, or forget to use them. Worse yet, they may look for another job with an employer offering fewer benefits – but that explains and promotes them better.

If your company has not incorporated digital communications such as video messaging and virtual meetings, it may not effectively reach remote and young adult workers. Also note that these mediums provide quicker, cheaper, and more personal alternatives to benefits booklets and group meetings.

Studies show that benefits satisfaction is directly correlated to worker contentment, loyalty, and retention. Therefore, employers should focus on improving benefits communication to reduce turnover, increase utilization, and provide a better return on their investment. It is not enough to offer a great benefits package; workers must understand them, choose the correct options for their circumstances, use them, and appreciate their value.

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