How benefits technology improves benefits literacy

Despite how important benefits are to the workforce, many employees have a hard time understanding them. The complexities of benefits overwhelm employees, so they often opt for a plan that doesn’t align with their needs — usually, the lowest-cost plan. They then become frustrated down the line when they’re hit with unexpected co-pays, deductibles, and other out-of-pocket expenses.

This is why improving benefits literacy is so important to incorporate into a benefits strategy. But it’s not easy, as benefits communication poses a significant challenge for employers.

Understanding the challenges of benefits communication

Traditional methods of benefits communication seldom provide any value to employees. According to MetLife’s Employee Benefit Trends Study, only 4 in 10 employees believe their employers’ benefits communication is simple to understand. 

Poor communication methods result in employees leaning on HR for help (if they seek help at all). This puts a significant burden on HR teams, as they must field many benefits-related inquiries during an already hectic open enrollment (OE) period.

Poor benefits literacy results in a less engaged and satisfied workforce. As a result, employees will be less productive and those great benefits employers are offering aren’t yielding the intended result — so their resources have gone to waste.

Employers recognize the value of benefits in attracting and retaining top talent. However, what good are benefits if the workforce doesn’t understand the value of them? Fortunately, there is an effective solution for employee benefits communication.

Benefits technology: a catalyst for improved benefits literacy

Benefits administration technology is one of the most effective solutions for benefits communication. But there is a catch: not all benefits technology can help. HR professionals need best-of-breed technology with the right functionality to improve benefits literacy.

With the right technology, employees are empowered to take control of their own benefits journeys with self-service functionality.

Decision support tools

Decision support tools within a ben admin system provide employees with numerous tools and resources to understand their benefits. Some tools are as simple as glossaries that break down benefits jargon or side-by-side plan comparisons. Others — like analytical tools that can calculate out-of-pocket expenses — dive a little deeper.

Whether employees are watching videos or calculating their potential expenses, decision-support tools are resources that are engaging, easy to use, and most importantly, informative.

Mobile-responsive technology

In an on-demand world, we like having information at our fingertips. Benefits information should be no exception. Technology platforms should be mobile-responsive so that people can access the portal to learn about their benefits and enroll wherever, whenever. This means that employees can make critical benefits decisions at home with support from their families.

Mobile-responsive benefits technology empowers employees to take control of their benefits journeys. By meeting employees where they are, they can learn, shop, and enroll in benefits on their terms.

How advisors can help

Enhancing benefits literacy is crucial for ensuring employees make informed decisions about their benefits, ultimately leading to a more engaged and satisfied workforce. It’s important for benefits advisors to ensure their clients prioritize benefits literacy. Specifically, advisors should advocate for technology systems that enhance benefits communication and enrollment. After all, you provide great benefits, and you want to make sure your clients are getting the most out of them.