Employee benefits are more than just perks—they’re powerful tools for attracting and retaining top talent, boosting productivity, and fostering workplace satisfaction. Yet, many organizations underestimate a crucial factor in ensuring their benefits programs succeed: employee education. Without proper knowledge of their offerings, even the best-designed benefit packages can go underutilized.
For business owners, small business owners, and HR professionals, investing in employee education around benefits is key to getting the most out of these programs. This blog explores why benefit education matters, how to optimize your efforts, and the payoff for employers and employees alike.
Why Employee Education is Vital for Benefit Utilization
1. Awareness Leads to Utilization
A study by Voya Financial revealed that 35% of employees don’t fully understand the benefits offered by their employer. This lack of awareness often results in employees not taking full advantage of critical offerings like retirement plans, health insurance options, or wellness programs.
By educating employees, you help them unlock the value of their benefits, empowering them to make smarter choices for their financial, physical, and mental well-being.
2. Boosting Employee Satisfaction and Retention
Benefits education directly impacts job satisfaction. When employees feel informed and supported, they see their employer as invested in their success. Inevitably, this enhances morale and reduces turnover rates. For small businesses, where every team member plays a pivotal role, retaining top talent is vital to operational success.
3. Increased ROI for Employers
Employers spend a significant portion of their budget on employee benefits. However, without proper education, these benefits may go unused, diminishing their return on investment (ROI). By educating employees on how to utilize what’s offered, business owners ensure these investments yield tangible results, such as healthier employees and higher job performance.
How to Create an Effective Benefits Education Plan
1. Simplify the Complexities
Health insurance co-pays, retirement fund matching, dependent care options… benefits can be overwhelming for employees to grasp. Use plain, jargon-free language to break down offerings.
For instance, instead of handing out dense PDF manuals, consider interactive options like webinars or on-demand videos that explain benefits in a straightforward, relatable way.
2. Offer Ongoing Education
Benefits education shouldn’t just happen during employee onboarding or annual open enrollment periods. Make it a recurring effort by conducting quarterly lunch-and-learn sessions, sending easy-to-follow email guides, or offering one-on-one consultations with HR.
Pro tip? Align communications with critical life events, such as marriage, parenthood, or career milestones, to help employees better connect benefits to their personal circumstances.
3. Tap Into Technology
Use tools like benefits portals or mobile apps that allow employees to explore their options at their convenience. Features such as cost calculators and decision-making guides can help simplify complex choices, such as selecting a health insurance plan.
Example: Tools like PlanSource or Zenefits simplify decision-making by presenting side-by-side comparisons of coverage options and costs.
4. Gather Employee Feedback
Not everyone engages with benefits communication the same way. Some employees may prefer a sit-down session with HR, while others gravitate toward visuals or videos. Conduct surveys to understand how employees like to receive information about their benefits, then adapt your educational approach accordingly.
The Payoff for Prioritizing Education
Investing time and effort into benefits education doesn’t just help employees—it creates measurable advantages for employers as well. Employees who feel well-supported are more engaged, leading to increased productivity and loyalty.
Additionally, properly utilized benefits reduce absenteeism and overall healthcare costs. For example, employees who take advantage of preventive care options will likely experience fewer serious health issues, saving both them and their employer significant medical expenses in the long run.
Take Action Today
Building a comprehensive employee benefits program is just the first step. Ensuring your workforce fully understands and makes use of that program is equally, if not more, important. Whether you’re a small business owner working with a handful of employees or an HR leader in charge of a large team, prioritizing benefits education will maximize the impact of your investment.
Join EBPA Today
Established in 1948, Employee Benefit Planning Association (EBPA) is a non-profit educational organization providing support and professional development opportunities to members and all those engaged in employee benefits by serving as a forum for the exchange of knowledge, information and ideas.