In a survey conducted in November 2023, the disconnect between employee expectations and employers was pulled into sharp focus. Despite employers putting significant effort and budget into offering quality benefits, they continue to be underutilized, leading to disengagement and affecting retention rates. Just one example: Forty-nine percent of employers surveyed offer financial wellness benefits, yet only 28% of employees are leveraging them, 72% struggle to understand their benefits, and nearly a third have difficulty grasping the monetary value of employer-provided benefits.
This challenge is one that HR leaders across industries know all too well. Companies are crafting robust benefits packages — health plans, retirement savings, wellness programs — yet employees often feel confused, unsupported or unaware of what’s available. This disconnect often leads to frustration and turnover, with 91% of surveyed employers experiencing turnover rates exceeding 10% in 2023.
Suffice it to say that this isn’t just a challenge of providing the right benefits. That’s one part of it. The other is educating employees about the benefits already available to them. Without ongoing communication and clear guidance, even the most comprehensive packages can fall flat and leave employees feeling lost at benefits sea.
Where the Disconnect Begins
Navigating benefits options can feel like a maze during enrollment and renewal periods. While employees might know their company offers health insurance and retirement plans, understanding how to utilize these resources fully is another matter.
From the employer’s perspective, it can be frustrating to see carefully crafted benefits packages underutilized. After all, time and money go into designing these offerings to meet the widespread needs of employees. When benefits aren’t being used, and ’employees are dissatisfied, it can feel like those efforts have gone to waste.
The disconnect often boils down to a lack of communication. Employers may not be offering enough education about what benefits are available, how to access them or why they matter. Even the most comprehensive packages can go underutilized without ongoing engagement and clarity.
How to Bridge the Gap
To bridge the gap, a centralized, year-round digital platform is essential. Engagement increases when employees can easily access benefits information, enroll and manage their accounts. A modern platform doesn’t just make it easier for employees — it also drastically reduces headaches for employers.
Employers can automate key processes, from enrollment to life event updates, making HR operations more efficient. Platforms that integrate benefits management streamline the entire process for HR teams, saving time and minimizing administrative tasks that traditionally take hours. Automated reminders, self-service tools and accessible dashboards ensure employees and HR professionals are on the same page.
This all-in-one approach also makes compliance management more seamless, reducing risks of errors and ensuring that the latest benefits updates are clearly communicated to the staff. The result? A more efficient benefits administration process, reduced workload and a more satisfied, engaged workforce.
What Benefits Literacy Means for Retention
Providing a full benefits package alone doesn’t guarantee high satisfaction or retention. Utilization hinges on how well employees can access, understand and use those benefits. When employees can access employer-sponsored coverage in times of need, they feel valued and supported by their employer. This sense of security is crucial in their decision to stay with the company.
Companies can foster a more loyal workforce by closing the benefits literacy gap. Platforms that empower employees with clear information and easy access improve engagement and boost retention rates. When employees fully understand and appreciate the value of their benefits, they’re less likely to look for greener pastures elsewhere.
Comprehensive benefits packages are essential but only part of the equation. Employers need to make sure their teams understand what’s available to them. By focusing on ongoing education and communication, companies can ensure their benefits are fully utilized — and that employees remain satisfied, engaged and loyal in the long run. —Ed Sayed, VP of Customer Success at Vimly Benefits Solutions (vimly.com), responsible for the Customer Support and National Account Client Services teams
 As vice president of Customer Success at Vimly Benefit Solutions, Ed Sayed is responsible for the Customer Support and National Account Client Services teams. Sayed focuses on developing the strategic framework to scale operations and enhancing processes and methodologies. |
