How to Communicate Benefits to Your Employees

Why is it important that employees understand their benefits?

Effectively communicating employee benefits is a crucial part of employee benefits administration. Employees who understand their benefits are better equipped to select plans that meet their specific needs, which leads to greater satisfaction with their overall compensation. And when employees feel supported through the benefits you offer, it increases engagement and loyalty, both of which are vital to retaining top talent.

It’s important to note that certain plans may require a minimum level of enrollment, and proper education around benefits can also boost participation rates. Clear communication also helps employees fully appreciate the value of your benefits, encouraging them to take advantage of what’s offered.

Additionally, when employees know how to use their benefits appropriately, it can lead to cost savings for both them and your business. On the other hand, misusing benefits—like visiting the emergency room for non-urgent care—can be costly. Educating employees about their options helps them make smarter choices, like utilizing telemedicine or scheduling regular preventive care visits, which are less expensive and improve overall well-being.

Here's a quick wrap up of why employee benefits education is important:

• Increased satisfaction: Employees can make informed decisions and choose the best plans for their personal needs.
• Higher participation rates: Proper communication encourages employees to enroll in valuable benefit programs.
• Cost savings: Correct utilization of benefits reduces unnecessary expenses for both employees and employers.
• Better health outcomes: Employees are more likely to use preventive care and other health services effectively.

For more on how to help employees maximize their benefits, read our article on how proper benefits education can kick-start money-saving, health-boosting goals.

How to Communicate Benefits to Employees

Communicating employee benefits effectively starts with a clear and engaging approach – one that helps your team fully understand the value of the benefits you're offering. And developing an employee benefits communication strategy that resonates with your workforce will help boost participation and ensure employees fully utilize the benefits available to them.

Consider the following as you build your own employee benefits communication strategy:

• Use Simple, Clear Language
  
  When describing benefits, avoid jargon or overly complex terms. Employees should be able to quickly understand their options and how those benefits work. Using simple language helps remove confusion and allows employees to feel confident when making decisions about their health, retirement, and wellness plans.

• Tailor Communications to Employee Needs
  
  Employees have diverse lifestyles and needs, so it's important to create targeted content that speaks to each group. For example:
  • Single employees may be more focused on health insurance and financial planning.
  • Employees with families might prioritize family health coverage and dependent care options.
  • Those nearing retirement may need information on 401(k) plans and retirement strategies.

By addressing the unique concerns of different employee groups, you make your benefits offerings more relatable and useful.

• Use Multiple Communication Channels
  
  A successful employee benefits communication strategy leverages various platforms to reach employees. Consider using:
  • Emails and social media posts
  • Webinars and office-wide meetings
  • One-on-one meetings with benefits counselors
  • Interactive decision-support tools
  • Videos and presentation technologies

These diverse methods ensure you reach both in-person and remote employees. Additionally, offering multiple sessions or recording meetings allows employees who work different shifts to access information at their convenience.

• Use Real-World Examples
  
  To bring the value of your benefits to life, use anonymous real-world examples that showcase how employees have benefited from your plans. Whether it’s an example of how preventative care saved someone from a costly medical procedure or how a retirement plan helped someone nearing retirement, these stories make the benefits more tangible.

• Send Timely, Targeted Messages
  
  Communicating in advance of key dates, such as the start or end of the open enrollment period, ensures that employees are prepared. Send clear, specific messages several weeks before important deadlines, with required actions highlighted in bold. This proactive approach keeps employees informed and reduces the chances of missed deadlines or confusion.
  
  To help simplify the development of effective communication pieces, G&A created three open enrollment email templates to help you keep your employees on track and well informed. Check them out here.

• Gather Feedback
  
  Survey your employees to gauge the effectiveness of your communication efforts. Find out if they prefer information delivered in a different format or if your methods are meeting their needs. This feedback allows you to adjust your approach and ensures your messages are reaching the intended audience in the manner they are most likely to engage with.

• Provide Ongoing Support
  
  Make sure employees know who to contact with questions regarding benefits or open enrollment. Offering one-on-one benefits enrollment meetings and setting aside time to answer questions can alleviate confusion and improve employee engagement.

How to Communicate Benefits Changes to Employees

When benefits change, confusion can arise, so it's essential to provide clear, timely, and accessible information to your employees. Effectively communicating benefits changes to employees will help them to understand the impact of the updates and what actions they need to take.

Here are some key strategies to consider in your benefits communication when there are new benefits offered or other changes to existing plans:

• Highlight What’s Changing
  
  In any communication about benefits updates, make sure to clearly outline what is changing. Whether it’s a shift to a new healthcare provider, updates to retirement plan options, or changes in deductibles and copays, this information needs to be front and center. Use simple language and avoid overwhelming employees with too much detail upfront. A dedicated section on “What’s Changing” helps employees quickly identify the most important updates.

• Explain How Changes Impact Employees
  
  The first question on your employees' minds will be, “How does this impact me?” Make sure to provide specific details on how the changes affect their coverage, costs, and options. For example, if the company is switching to a new medical plan, clarify how it impacts their existing coverage, what new options are available, and any cost changes they can expect. Offering personalized examples can also help illustrate these points in a way that resonates with employees.

• Clarify Enrollment Requirements: Active vs. Passive Enrollment
  
  When benefits change, it’s critical to communicate whether employees are required to re-enroll. This is often the case during open enrollment when new plans or providers are introduced. Make sure to explain the difference between active enrollment—where employees must take action to choose or re-enroll in their benefits—and passive enrollment, where benefits roll over without action. If employees need to actively enroll in a new medical, dental, or vision plan, make this clear well in advance to avoid any gaps in coverage.

• Offer Webinars on Benefits Changes
  
  Hosting short webinars to explain benefits changes can be highly effective. Break down your webinars into focused topics: one covering new benefits and another detailing any changes to existing benefits. Ensure these webinars are accessible to employees at any time, so those with different schedules can still stay informed. This allows employees to absorb the information at their own pace and refer back to the material as needed.

• Use Multiple Channels and Methods
  
  Just as with general benefits communication, it’s important to use various channels to reach employees when communicating benefits changes. Send emails, host webinars, and post updates on your internal portal. Offering one-on-one meetings with benefits counselors or HR representatives can also provide employees with the opportunity to ask questions and get clarity on any changes that affect them.

• Communicate Well in Advance
  
  Timing is everything when it comes to benefits changes. Give employees plenty of notice—preferably several weeks before open enrollment or the effective date of the changes. This not only helps them prepare but also reduces the chances of missed deadlines or confusion over required actions.

By following these steps, you can help ensure employees are well-informed about any updates to their benefits and feel confident about making the right decisions during periods of change.