Help Your Employees Get More Out of Their Employee Benefits Program

As we enter Q4, many companies are preparing to renew their employee benefits programs. However, despite the substantial investment in these packages, a common issue persists: most employees don’t fully understand or appreciate the value of their benefits. This lack of understanding reduces the impact of your benefits offering, which can undermine employee satisfaction and retention.

For CFOs and other executives, this raises a critical question: How do we ensure employees see the value in the benefits we provide? Here are key strategies to strengthen communication, boost employee engagement, and maximize the return on your benefits investment:

1. Repetition Drives Engagement ??

Most companies host one benefits meeting at the start of the enrollment period, often supplemented by a video or an email. But that’s not enough. Studies show that employees forget or misunderstand key details after a single communication. To address this, you need to over-communicate the value of your benefits package.

Think of it like marketing—how many times do you need to hear a message before it sticks? The same principle applies to benefits. Use multiple channels: emails, texts, videos, webinars, and printed materials. Revisit these messages regularly, not just during open enrollment. Ongoing communication throughout the year keeps benefits top of mind, helping employees realize the continuous value they receive.

2. Leverage One-on-One Meetings ??

While repetition is essential, personalized communication takes employee understanding to the next level. Group sessions may be efficient, but they lack the depth and individual relevance needed to fully engage your workforce. One-on-one meetings are where the real value is unlocked.

These sessions—conducted by HR staff or your benefits broker—allow employees to ask specific questions about their personal situations, helping them understand how their benefits impact their individual needs. This tailored approach boosts satisfaction and ensures your employees see their benefits as a valuable, integral part of their compensation.

Incorporating digital tools for personalized benefits guidance can also streamline the process. Benefits platforms that allow employees to explore scenarios tailored to their unique life circumstances—such as planning for a family or saving for retirement—can drive even deeper engagement.

3. Communicate the Financial Value of Benefits ??

One of the biggest gaps in employee benefits communication is that most employees don’t realize the full value of their benefits package. I recently worked with a company spending nearly $24,000 per employee annually on benefits, yet employees weren’t aware of this significant investment.

By sharing the dollar amount of the company’s contribution to their benefits—whether it’s health insurance, retirement plans, or other perks—you can give employees a clearer picture of the real value they’re receiving. This reframes their understanding of total compensation, beyond just their salary, and reinforces how much the company values them.

Highlight the cost savings too. For example, if an employee is saving $500 a month through employer-sponsored health insurance, make sure they know that. Financial transparency goes a long way in building appreciation.

4. Tailor Benefits to Evolving Employee Needs ??

Employee needs are constantly shifting, and a one-size-fits-all approach may not be as effective as it once was. Offering flexibility and customization in your benefits package can improve both engagement and retention. For example, more employees are prioritizing mental health resources, student loan assistance, and flexible work arrangements.

Employers who adapt their benefits to meet these evolving needs will stand out in a competitive labor market. In addition, a more customized approach shows employees you’re responsive to their personal and professional growth, reinforcing their loyalty to your organization.

5. Use Data to Inform Strategy ??

Leveraging data is essential to making informed decisions about your benefits offerings. Utilize employee feedback and data analytics to understand which benefits are being used, which are underutilized, and what gaps may exist. Surveys, focus groups, and benefits utilization reports can provide valuable insights into what’s working and where improvements are needed.

By applying a data-driven approach, you can continuously refine your benefits strategy to better align with your workforce’s evolving needs and preferences.

The Bottom Line: Maximize the ROI of Your Benefits Program ??

Ultimately, effective benefits communication is about ensuring your employees see the full value of what you’re offering. Through repetition, personalized communication, transparency, and a data-driven strategy, you can create a benefits program that resonates deeply with your workforce. Doing so will not only increase employee satisfaction and retention but will also optimize the return on your company’s investment.

If you’re looking for ways to make your benefits program more effective, I’d be happy to help??

Aaron Cichy

[email protected]

Direct: 214-704-1952