Helping Employees Understand Their Health and Financial Benefits

Helping Employees Understand and Use Their Benefits

Benefit offerings that make life easier for your people and their families are essential. But when nearly 90% of employees don’t understand their options, improving the benefits and financial literacy of your people can help protect your investment while supporting your people.

Making benefits information simple to find, easy to understand, and relevant to real-life situations isn’t just good for your people, it’s good for your business. When employees understand their options, they make smarter choices that build trust, engagement, and long-term loyalty.

Why This Matters

People avoid what they don’t understand, and benefits are no exception. When employees feel overwhelmed or intimidated by their options, we often see:

• Choosing default plans that don’t fit their needs because they didn’t take action during enrollment
• Missing out on increasing 401(k) or HSA contributions or life insurance coverage
• Skipping proactive resources like preventive care, mental health support, financial education, and telehealth while relying on costly reactive options such as emergency room visits or 401(k) loans
• Feeling disconnected and unsupported because the information seems out of reach

Here are ways to empower your people by improving their benefits and financial literacy.

Make Information Easily Accessible

Whether confirming a deductible, finding a phone number, or learning about your EAP, finding benefits information should be easy for your people and their families.

Essential steps to ensure access:

• A single source of truth: Centralize plan details, contact information, ways to learn more, and “what to do when…” information in one simple, well-organized location.
• Ensure offline and family access: Benefits decisions don’t wait for business hours or company logins. Store your single source of truth outside your firewall (off the intranet) so employees and their families can get what they need anytime without hitting security roadblocks.
• Guide without overwhelming: Lead with simple, top-line explanations such as “Need to find a doctor?” or “Want to compare medical plans?” and link deeper for those who want the details. Everything doesn’t need to be on the first page.
• Define unavoidable jargon: Define necessary terms like deductible, coinsurance, and out-of-pocket maximum in clear, human language with relevant examples.

Accessibility also means supporting employees who are hard of hearing, have low vision, or similar needs. At a minimum, make sure videos include captions and written materials use high-contrast colors and work with screen readers. Consider language needs too; although your employees may speak English fluently, family members may not.

Keep It Human: Simple, Clear, and Actionable

A human touch matters. People respond when communication is clear, timely, and focused on what matters to them.

Practical ways to connect with your people:

• Lead with “what this means for you”: Every message should quickly answer what this is, why it matters, and what action is needed.
• Thoughtfully select delivery channels: Not every message needs to be an email. Text messages, short videos, app notifications, and manager talking points can all play a role. Sending an attractive mailer home can also help reach family members.
• Keep the tone human and approachable: Whether discussing debt reduction, dental options, or why an HSA is worth considering, avoid sterile policy language or complex terms.
• Focus on year-round education: Treat benefits literacy as a 12-month conversation, not just at open enrollment. Provide regular messaging about topics like how HSAs work, scheduling a financial check-in, and tips to prevent exercise injuries.

Support the Diverse Needs of Your People

Today’s workforce spans multiple generations, cultures, life stages, and financial realities. This means what matters most, and how information is consumed, can look very different from person to person.

Strategies to meet varied needs:

• Address life-stage priorities: Early-career employees may focus on debt and budgeting, mid-career employees on family and savings, and late-career employees on retirement and Medicare.
• Offer multiple formats: Micro-lessons, live support, webinars, videos, and on-demand resources allow people to connect with the content they need.
• Make a strong first impression: Onboarding sets the tone. Early benefits touchpoints should be clear, organized, and welcoming so new hires feel supported from day one.
• Bridge health and financial education: Health benefits affect financial security, and financial stress can impact health. Education should reflect this reality by combining benefits education and financial literacy.

Closing Thought

When employees truly understand their benefits, they are more likely to use preventive care, make informed financial decisions, and engage with the programs you already offer. The result is a more confident workforce and a stronger return on your benefits investment.

Ready to help your people truly understand, use, and value their health and financial benefits? Partner with a team that brings employee benefits, communications strategy, and financial wellbeing together under one integrated approach. Together, we’ll create an experience that builds confidence and delivers real outcomes for your people and your organization.