How Well Do Employees Understand Their Benefits?

Employee benefits are valuable, but only if they’re understood and utilized. The 27th Benefits Canada Healthcare Survey shows a worrying trend:??

• In 2018, 65% of plan members rated their knowledge of their health benefits as “excellent” or “very good”.??

• In 2024, that percentage has dropped to 47%.??

This gap in understanding means employees may be missing out on critical benefits that could support their health, wellness, and financial security.??

Preferred communication methods for benefits information:??

• Email (55%)?
• Insurer’s Website (24%)??
• Smartphone Apps (19%)??
• Printed Booklets (18%)?
• Mail (15%)?

Some of the usual parts of benefit plans that employees often find confusing include:

1. Prescription Coverage: Employees often struggle to understand which medications are covered, how much they need to pay out-of-pocket, and how to navigate co-pays or deductibles.
2. Mental Health Services: While mental health benefits are increasingly included, employees may be unsure about what services are covered, how to access them, or whether there are limits on the number of sessions. Additionally, some employers offer virtual mental support, which requires proper education for employees who might not have used such services before.
3. Dental and Vision Care: Details like annual limits, eligible procedures, and out-of-network coverage can be sources of confusion for many employees.
4. Retirement Plans: Understanding the intricacies of contribution matching, vesting periods, and investment options can be challenging.
5. Disability Insurance: Short-term and long-term disability benefits often come with complex eligibility criteria and waiting periods that employees may not fully grasp.
6. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): Employees frequently have questions about what expenses are eligible, how to use these accounts effectively, and the tax implications.

Effective communication can bridge this gap and boost employee engagement.??

What Sterling Brokers Can do?

Sterling Brokers offers a dedicated account manager for each client to assist with any inquiries from the plan administrators and their employees. Our proprietary technology platform, SCBconnect, provides fast enrolment, clear information display, and quick information changes for both plan administrators and plan members. We also offer claims support for our clients.

If you want to know more about how we can support your HR team and your employees in terms of benefits plan communication, feel free to book a free consultation with our advisors. We are happy to do a free benefit plan review for you as well.

What strategies does your organization use to communicate benefits? Are they working? Let’s share best practices and help employees get the most out of their benefits. ?