For many employees, benefits education occurs once a year during open enrollment. However, benefits education shouldn’t be a once-a-year event. Creating a year-round education strategy can dramatically improve utilization, reduce costs, and boost employee satisfaction. Organizations that implement continuous education see higher engagement levels, better-informed decisions, and ultimately, a healthier bottom line. By shifting from an enrollment-focused approach to ongoing education, organizations can transform benefits from a forgotten perk to a powerful retention tool.

The Hidden Value of Benefits Education

HR professionals are uniquely positioned to help employees understand and truly appreciate their benefits package. Unfortunately, many employees don’t fully comprehend the value of what they’re being offered. According to a study by the International Foundation of Employee Benefit Plans, eighty percent of organizations report that their employees don’t even read benefit materials. This lack of understanding leads to poor decision-making and underutilization of valuable benefits.

When employees better understand their benefits, they make smarter choices. Research from Jellyvision shows that 49% of employees would like help from their employers when choosing a health plan. Simply giving employees adequate time to review information after benefits presentations can increase comprehension by up to 30%. Remember, education isn’t just about distributing information. It’s about ensuring employees have the time and resources to process and apply it.

Beyond Enrollment: The Year-Round Approach

Successful companies have moved beyond the traditional enrollment-focused model to a year-round benefits education program. We must realize employees need different information at different times throughout their employment journey.

A continuous communication plan keeps benefits top-of-mind and helps employees understand how to use them effectively when needs arise. Consider implementing:

• Quarterly benefits webinars
• Monthly newsletter spotlights on different benefits
• Digital resource libraries employees can access anytime
• Personalized benefits reminders based on life events

Measuring and refining your strategy is crucial. Companies that track engagement with benefits communications and adjust their approach accordingly see a 60% higher utilization rate of voluntary benefits.

The Bottom Line: Increased Utilization and Reduced Costs

Effective benefits education can directly impact your company’s financial health. When employees understand how to properly use their health benefits, companies see reduced medical spend. A study by the National Business Group on Health found that organizations with comprehensive benefits education programs experienced 25% lower healthcare costs compared to those without such programs.

Better-educated employees are more likely to take advantage of preventive care, leading to earlier intervention and reduced long-term health costs.

Year-round benefits education isn’t just a nice-to-have. It’s a strategic need for today’s employers. By helping employees understand and utilize their benefits throughout the year, you’ll create a more engaged, healthier, and financially secure workforce while simultaneously improving your company’s bottom line.

Have a question? Schedule time with Edward Sanchez, Director – Customer Adoption & Engagement, by clicking here.