Making ends meet is getting more complicated. Prices of everyday goods and services continue to rise, and a new Aon study forecasts health care costs will increase by 8.5% in 2024. Employees who are already facing financial pressure are likely to feel a tighter grip on their wallets in the new year. So are employers, and for the sake of financial security for both, it's more important than ever for them to be in lock step with their employees when it comes to benefits. This brings me to alarming findings in the latest Aflac WorkForces Report, which uncovers a decline in employees' understanding of their health insurance policies — from 43% last year to 37% this year. Further, most employers (79%) think their employees understand health care costs well, while fewer than half (48%) say they do. And 78% of employers believe their employees are highly satisfied with their benefits, while only 59% say they are. What can employers do to shrink this widening gap? Open conversations to help close the gap.

Communicating about benefits isn't just for open enrollment periods. Once the conversation starts, it should be continuous. Providing year-round benefits education helps employees better understand the inner workings of their policies and how to fully leverage them. This knowledge empowers employees and helps them navigate the complexities of health care costs and be better prepared for an unexpected medical event. An ongoing benefits conversation is mutually beneficial because it provides employers insight into what their employees are looking for in their overall benefits package. It can also help close the gap between what employees understand and what employers think they know. And a third positive outcome is that it may lead to increased benefit usage. If employees understand what they have, they are more likely to use the offering. Meet employees where they are.

Offering benefits tools and resources that meet employees where they are in the digital space is key. In fact, a significant number of employees (82%) — and 87% of millennials — say it's very or extremely important to them to manage their benefits online; however, only 64% of organizations and providers offer online benefits management, down from 67% in 2022 and 79% in 2021, according to the Aflac WorkForces Report. Employers and providers who lean into digital technology will make it easier for employees to access and navigate their benefits on the go. And those companies with generational diversity among their workforce would do well to brush up on what younger workers want and need, compared to those who are a bit older. The report shows a significant chasm there as well. Boost benefits while balancing budget.