From Confusion to Confidence: Helping Employees Make Better Benefits Decisions

Employee benefits are an important part of the overall employee experience, but offering a strong benefits package is only part of the equation.

If employees don't understand their health insurance, employee benefits, or available coverage options, they may struggle to choose the right plan, overlook valuable resources, or avoid using benefits altogether.

That’s where employee benefits education comes in.

Clear, accessible benefits communication can help turn confusion into confidence and give employees the information they need to make informed decisions about their healthcare and financial well-being.

Why employee benefits education matters

Benefits can be complicated.

Employees may be comparing multiple health insurance plans while trying to understand premiums, deductibles, copays, coinsurance, out-of-pocket maximums, provider networks, prescription coverage, HSAs, FSAs, and more.

For many employees, this information only comes into focus during open enrollment, when they are expected to make decisions that can impact their finances and healthcare for the year ahead.

When benefits information is unclear or overwhelming, employees may:

• Choose a plan without fully understanding the costs
• Focus only on the monthly premium
• Miss out on valuable benefits and resources
• Fail to take advantage of preventive care or wellness programs
• Choose a plan that doesn't align with their healthcare needs
• Feel frustrated or unsupported during open enrollment

The goal shouldn't simply be to give employees more information. It should be to give them better information in a way they can actually understand.

Benefits communication starts before open enrollment

One of the biggest mistakes employers can make is waiting until open enrollment begins to start talking about benefits.

Employees need time to review their options, ask questions, consider their individual needs, and make informed decisions.

Instead of treating benefits communication as a once-a-year event, employers can make it an ongoing part of the employee experience.

That might include:

• Benefits education throughout the year
• Short, easy-to-understand explanations of complex topics
• Reminders about available benefits and resources
• Educational videos, emails, or employee guides
• Opportunities for employees to ask questions
• Clear communication before and during open enrollment

The more familiar employees are with their benefits, the less overwhelming open enrollment becomes.

Help employees understand the big picture

Employees don't necessarily need to become benefits experts. They simply need to understand how their benefits work and where to go when they need help.

For example, instead of simply telling employees that a health plan has a specific deductible, explain what that deductible actually means.

Instead of listing an HSA as a benefit, explain how an HSA works, who is eligible, and how it can help employees save for qualified healthcare expenses.

Instead of handing employees a long benefits guide, highlight the information they are most likely to need when making a decision.

Effective benefits education connects the dots.

Ask questions employees are actually asking

Good benefits communication should answer practical questions such as:

What will this cost me?

Employees want to understand not only their payroll deductions, but also the potential costs they could face when using their healthcare.

What happens if I need medical care?

Explain deductibles, copays, coinsurance, and out-of-pocket maximums in straightforward language.

Can I keep my doctor?

Provider networks can play an important role in choosing a health plan, especially for employees who already have established healthcare providers.

What happens if I have a major medical expense?

Helping employees understand how their coverage works before they need it can make the benefits experience much less stressful.

Which benefits should I actually use?

Employees may have access to wellness programs, preventive care, telehealth, employee assistance programs, flexible spending accounts, health savings accounts, and other resources without fully understanding their value.

The more clearly these questions are answered, the more confident employees can become.

Don't overlook benefits education beyond health insurance

Employee benefits extend far beyond medical coverage.

Depending on the employer's benefits package, employees may have access to:

• Dental and vision insurance
• Life insurance
• Short-term and long-term disability
• Health savings accounts
• Flexible spending accounts
• Retirement plans
• Wellness programs
• Employee assistance programs
• Voluntary benefits
• Telehealth and other healthcare resources

These benefits can provide significant value, but only if employees know they exist and understand how to use them.

Benefits utilization is closely connected to benefits awareness.

When employees understand what is available to them, they are better positioned to take advantage of the benefits their employer is already investing in.

Make benefits information easier to understand

More information isn't always better.

A 50-page benefits guide may contain everything an employee needs to know, but that doesn't mean they'll read or understand it.

Employers can improve benefits communication by focusing on clarity and accessibility.

Consider:

Use plain language.
Replace complicated insurance terminology with explanations employees can easily understand.

Break information into smaller pieces.
Short emails, videos, FAQs, and educational resources can be easier to absorb than one large document.

Explain the “why.”
Don't just tell employees what a benefit is. Explain why it matters and when they might use it.

Repeat important information.
Employees don't always absorb information the first time they see it. Consistent communication throughout the year can help reinforce key concepts.

Give employees somewhere to go with questions.
Benefits education is much more effective when employees know who they can turn to for clarification.

Benefits education can benefit employers, too

Helping employees make better benefits decisions isn't just about improving the employee experience.

It can also support broader employer benefits strategy.

When employees understand their benefits, employers may see better utilization of available resources, fewer questions caused by basic misunderstandings, and greater appreciation for the overall benefits package.

Strong benefits communication can also contribute to recruitment and retention.

Employees want to feel that their employer is investing in their well-being. A benefits package that is difficult to understand can lose some of its perceived value.

The best benefits package in the world doesn't provide much value if employees don't understand how to use it.

Turn open enrollment into an education opportunity

Open enrollment shouldn't feel like a paperwork deadline.

It can be an opportunity to educate employees, answer questions, and help them feel confident about the choices they're making.

Employers can use open enrollment to explain:

• What's changing from the previous year
• How plan options compare
• Changes to premiums and employee contributions
• Deductibles and out-of-pocket costs
• Provider networks
• HSA and FSA options
• Available supplemental benefits
• Important enrollment deadlines
• Where employees can get additional help

The goal is simple: employees should leave open enrollment understanding what they selected and why.

The bottom line

Employee benefits are a significant investment for any organization. But the value of that investment doesn't stop at what an employer offers.

It also depends on whether employees understand their benefits and feel confident using them.

With thoughtful employee benefits education and clear benefits communication, employers can help employees make more informed healthcare and financial decisions, get greater value from their benefits, and feel more supported along the way.

At The Laughton Company, our goal is to make benefits and compliance clearer, simpler, and more manageable for employers and their employees.

Because when employees understand their benefits, everyone benefits.