Breaking benefits barriers: why approachability is key to health care literacy

Whether a veteran employee or a new college graduate hire, workers need more guidance than ever to understand and navigate today’s complicated benefits offerings. In fact, according to the Center for Health Care Strategies, 9 out of 10 U.S. adults struggle with health care literacy or understanding their benefits.

Why should employers and their benefits advisors care? A lack of employee health care literacy reduces utilization, negatively impacts population health and adds to rising costs. A recent survey from HealthEquity found that 28% of employees who had a poor understanding of their benefits second-guessed their choices. Conversely, employees who understood their benefits were more likely to be satisfied with their jobs (58%). 

Employers can make benefits more approachable by being more purposeful in communications to an increasingly diverse workforce, personalizing benefits education, and streamlining offerings to make programs feel less overwhelming.

Tailoring communications

A key step to improving the approachability of benefits programs is to understand which communication methods appeal to employees, opting for customization instead of a one-size-fits-all approach.

First, generational differences must be considered. To appeal to younger generations who watch short clips on social media, consider creating shorter-form content like videos or podcasts to match the audiences’ lessened attention span. For older generations who prefer viewing information in a physical form, consider creating a magazine to explain key benefits – especially as it’s more visually engaging than a traditional send-home benefits guide that spouses/partners can read.

Second, benefits professionals should also consider the language complexity and style used to describe benefits. Americans digest news at a high school level, but audits have shown that benefits communications are being written at a college level. Using simpler, jargon-free language can increase understanding. 

And third, as the workforce becomes more diverse, there’s also a growing need to translate communications into multiple languages. A recent U.S. Census Bureau report found that the number of Americans speaking a language other than English at home has nearly tripled in the past 40 years. Understanding complicated benefits in a second language can be challenging, and translations can boost comprehension and utilization.

Personalizing benefits education

Employers should leverage tools to paint a picture of how individual employees might utilize benefits to avoid leaving the burden of choosing the right benefits to employees. 

One of the best options is formal decision-support tools. These platforms use quizzes, AI and interactive chatbots to guide employees through offerings and help them better understand their options. Some also offer educational materials like side-by-side plan comparisons, cost calculators and short how-to videos. These platforms can be expensive, but often provide increased utilization and benefits comprehension. 

For a more affordable option, employers can alternatively craft personas to show how fictional employees might use each plan option or navigate specific benefits. This approach offers a fictionalized and softer way to bring benefits to life through the art of storytelling. 

Also, with more workers returning to the office in some form, there has been a greater demand for in-person events. Whether wellness fairs or in-person open enrollment meetings, employers should add elements to their benefits education plan that provide human interaction. These events create an immersive opportunity for employees to interact with benefits and boost comprehension.

Paring down offerings

SHRM’s 2024 Employee Benefits survey found that the total number of benefits employers offered rose by 23% in the last year. While these additional benefits are introduced with the best of intentions, employers who try to offer a variety of unique benefits options risk overwhelming employees with too many plans and solution offerings. 

To avoid causing decision paralysis due to this multitude of offerings, employers should consider streamlining their benefits program. Advisors should encourage employers to leverage a data-driven approach, such as surveys or focus groups, to identify which benefits are valued most and determine where further education is needed. With this information, employers can restructure benefits and create additional education materials to help increase utilization.

Another area to examine is user access to benefits information. Instead of offering different apps and phone numbers for support, multiple platforms can be consolidated and replaced by a benefits navigator or concierge. These services offer speedy, on-demand support via app or phone when employees need it most — including an emergency medical or mental health crisis— which nicely complements year-round messaging and education. 

Approachability looks different for everyone, which requires careful consideration, deliberate communication and efficient operations from employers and advisors seeking the best approach to increasing utilization and satisfaction. As health care delivery continues to change, employers must work closely with advisors on the best strategies to maximize ROI.

By thinking critically about benefits approachability, employers can boost their employees’ health care literacy, see higher utilization rates and heighten morale and satisfaction.

Erika Illiano serves as Partner, Communications Practice Leader at Brown & Brown.