One of the primary challenges the workplace benefits industry faces is the lack of understanding among employees regarding the benefits available to them. LIMRA research reveals that many workers do not have a solid understanding of their benefits, with only about half saying they understand their medical and retirement benefits “very well.” This level of understanding drops to just 33% for non-medical benefits such as life insurance and disability insurance.
This gap can make workers underappreciate their benefits packages and become hesitant to enroll if they don’t have a firm understanding of the product, what it covers and how much it costs.
Recommended For You
Communication is key
Several factors are preventing workers from better understanding their benefits, and these issues have been exacerbated by the disconnect created by remote and hybrid work models. Many workers say they do not have adequate time to review enrollment materials in order to make good decisions about the benefits offered. Additionally, many also cite the growing complexity of benefits. Others say that not enough information is provided or that the information is not communicated effectively.
All of these factors point to a common theme: current benefits communication methods are outdated and do not account for the evolution in benefits offerings or how consumers gather and absorb information. Benefits education and communication materials need to highlight the features, costs and other critical information that employees need in order to make an informed decision in a streamlined way.
Traditional delivery models need to change in order to better align with the realities of today’s workplace. While remote and hybrid work models have many advantages, they can sometimes disconnect workers from their employers and present new challenges in aligning and delivering benefits that meet the needs of today’s workers. This has forced carriers and other workplace benefits providers to evolve and adapt, leveraging technology and decision-support tools to educate and enroll workers in new and different ways.
Many workers also point to their employer and the role they play when it comes to the struggles they face surrounding their benefits. Just 30% of workers feel that their employer understands their benefits needs “very well.” LIMRA research also shows that many workers feel their employer does not do a very good job communicating their benefits to them, with fewer than half saying that their employer communicates commonly offered benefits “very well.”
Employers commit significant resources and effort into building benefits packages to attract and retain workers. It would seem, however, that employers are not always aligned with the benefits needs of their workers, often lose focus, and do not follow through on effectively communicating their benefits to their employees.
Ensuring that workers know about and understand the benefits that are available to them will help employers attract and retain the best workers. How can benefits communication be improved? Workers highlight several areas that they feel will provide them with better awareness and understanding of their benefits. These include providing:
- Material that is easier to understand
- Information that is specific/applicable to them
- The opportunity to meet with a company or HR representative
- More frequent communication
- Better interactive online/digital tools
Patrick Leary is Corporate Vice President and Director, Workplace Benefits Research, at LIMRA and LOMA.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
