An employer can have the best benefits program in the world—but if employees don’t utilize it, then it won’t achieve its potential. I’ve seen firsthand how underutilized benefits can lead to higher costs, frustration, and missed opportunities for both employers and employees. The problem often isn’t that these benefits aren’t valuable, but that employees don’t know what they have available to them or how to take advantage of it.
The solution is education: Employees don’t know what they don’t know, and benefits can be incredibly complex. We have five generations in the workforce, each with different learning styles and preferences. This makes it tough for HR teams, who may be stretched thin with limited budgets and resources, to communicate effectively and deliver the right information in the right way to the right people. However, it’s not impossible. In fact, with the right mix of technology, communication strategies, and guidance, employers can boost benefits utilization and foster a healthier, happier workforce.
Prioritize education with the help of technology
The more informed employees are, the more likely they are to use their benefits—not just their core medical coverage, but also their added-value resources and point solutions. Technology has made this easier than ever. Multi-channel communication is essential to meet employees where they are, and advancements in AI and mobile tech play a huge role. For example, if a company uses Slack or Teams, they can add an AI chatbot that answers benefits-related questions in real time. AI-driven platforms can guide employees through the complex web of benefits, 24/7. Needless to say, this also frees up time for HR teams.
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Employee navigation apps are transforming the way benefits are delivered and understood. A unified app gives employees a single place to see what’s available and how to access it. Let me give you an example of where this can help: I had three employees from one company reach out about nutrition services. They wanted nutrition coaching, but it wasn’t physician-prescribed, and their carrier told them that it wasn’t a covered medical expense. While this was true, what they didn’t know was that their carrier did offer nutritional coaching as a value-added benefit at no additional cost. Because insurance carrier teams are typically trained on medical necessities rather than the “extras,” employees may miss out. By entering their area of interest into an employee navigation app or AI chat, these employees would have been pointed in the right direction.
This can be great for employees who know about the targeted solutions they want, but what about cases where employees may not even know that certain types of benefits exist? Here, decision-support, and navigation tools are powerful forms of education. Benefits decisions can be overwhelming, and many employees don’t even know where to start. Tools that steer employees toward the right health plan or help them decide what coverage they need can lead to better enrollment decisions and better outcomes down the road. The more tailored the guidance and the better it represents the whole person and their lifestyle, the more valuable it becomes.
Implementing an app or platform that guides employees to in-network providers based on quality and cost can also improve health outcomes and reduce long-term expenses. Encouraging preventive care further lowers costs for both individuals and organizations. By combining value-based care with data-driven insights and transparency, employees can make informed decisions—not just based on convenience, but on quality and affordability.
Leverage targeted communication
Communication is the next piece of the puzzle. Effective communication is essential during onboarding and open enrollment, but it should be a continuous, year-round process. If employees don’t see or remember the benefits you provide, even the best benefits will go underutilized and underappreciated.
Employee Assistance Programs (EAPs) are a good example of where communication makes a difference. In the past, EAPs were underused because they sat in the background—employees might not even know they existed. Today, modernized EAPs should be actively promoted through Q&A sessions, surveys, and even gamification. A well-communicated EAP can help employees with everything from financial stress to mental health concerns—not just when they’re in the midst of a crisis, but throughout their day-to-day lives.
Employers should use multiple communication channels, as some employees prefer email, others respond to Slack notifications or text messages, and others might need a physical flyer or poster in the office. Q&As can be especially effective as they allow employees to share their experiences with the benefits programs, and word-of-mouth is a powerful tool for engagement.
Provide clear guidance and actionable steps
Employees need clear guidance on how to access benefits. Knowing what’s available is only half the battle; they must also know how to take action. AI and decision-support tools play a role here by walking employees through the process step-by-step, ensuring they can confidently make informed decisions. Once enrolled, this technology can help employees access and navigate their plans for the best outcomes.
Pulse surveys can also refine your strategy. Regularly ask employees what’s working, what’s not, and what they want to see more of. If a certain communication channel isn’t getting traction, adjust it. If employees want more information on a specific type of benefit, lean into that. If employees want a benefit that you don’t offer, look into whether your benefits are keeping up with your employees’ needs and your company culture. Communication should be a two-way street.
Think long-term for a winning strategy
The most effective employee benefits education and communication strategies grow and evolve over time. In the first year, you may focus on broad awareness with simple communication, and then build on that foundation in subsequent years by offering more tailored resources and deeper education. Over time, employees will become more aware of their benefits, more confident in using them, and more satisfied with their overall experience. Try not to change up carriers year over year, as this will create confusion and lack of engagement.
It’s also important to track and measure progress. Use employee surveys, utilization data, and feedback from managers to adjust your strategy. If certain benefits are underutilized, look at how you’re communicating about them. If employees are consistently confused about a particular offering, adjust your educational materials or decision-support tools. Don’t be afraid to terminate a benefit if it’s not producing the ROI or engagement desired. With the right messaging, it’s not a loss but a strategic refinement, aligning offerings more closely with employees’ needs.
By prioritizing education, communication, and resources, you can create a benefits strategy that not only increases utilization but also improves employee satisfaction, reduces costs, and builds a healthier, more engaged workforce.
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