Bridging the gaps in your employee benefit offerings

You're already investing the time, money, and effort into developing a high-quality benefits program, but are your employees getting the most out of what you provide?

Optavise surveyed more than 2,000 employees across different companies and industries to uncover the real challenges workers face when it comes to healthcare literacy, benefit utilization, and overall satisfaction. These findings can help you bridge the gaps in your employee benefit offerings to increase engagement and lower costs.

Challenges in benefits communication

Navigating benefits can feel intimidating, especially as your employees try to figure everything out while keeping up with their daily work.

"The biggest problem with benefits is ensuring employees know they're there in the first place," says Joshua Madson, Head of Worksite Strategy at Optavise.

In other words, employees might not even realize everything you have available. Perhaps they know how to enroll in your health insurance plan but don't realize you offer additional voluntary benefits, like critical illness or disability insurance. Or, maybe they don't realize you set up programs to help manage chronic conditions, like diabetes and high blood pressure.

As benefit programs expand, they can confuse employees by providing them with so many different points of contact. Simplifying can help them from feeling overwhelmed. For this reason, Optavise Clear aims to eradicate confusion by providing a wraparound solution for everything, making it easier for employees to navigate their benefits.

Gaps in healthcare literacy remain

Employees who understand their benefits tend to appreciate them more, leading to higher satisfaction with the benefits offered, according to the Optavise survey results. There is still work to be done, though, as 26% of employees say they do not feel confident in understanding how their health plan works. That lack of understanding can prevent them from effectively using their hard-earned benefits.

In addition, 58% of employees who report that it's not easy to access their benefits also say they don't have a strong understanding of the plan. So, is the issue the plan design itself, or simply that the employees don't have the proper knowledge and training to utilize everything? Regardless, this is another reason why benefits training matters — it can solve both problems.

Why human support can boost benefits literacy

Employees who learn one-on-one, either with a member of their HR team or a third-party representative, are much more likely to rate their understanding of benefits as excellent versus someone who self-studied using materials like brochures, handbooks, and online courses.

The annual Optavise surveys show a trend that more employees have been getting this one-on-one support over the years. Engagement with employee benefit offerings has also steadily risen. This isn't a coincidence. Health is human, and employees receiving that personal support are more likely to thrive. You can offer your employees this one-on-one support through the Optavise Advocacy program.

Offering one-on-one personal support is essential, but it's not enough. Only about 50% of employees who have access to this training at work use it. Many may not be aware of its existence or its importance.

"You have to raise awareness and drive that connection that ultimately enables a better experience from beginning to end," says Madson. Doing so can improve healthcare literacy and engagement.

First impressions matter: Onboarding with benefits in mind

While only 15% of employees reported changing jobs in the past year, benefits were crucial for those who made a move: 74% said benefits were very or extremely important for the decision versus 67% a year ago. Given the importance of benefits for new employees, are you doing everything to train them properly?

"At some organizations, people will join, and it might take two weeks before they even get a laptop issued. Is that an onboarding process that makes people feel valued?" asks Madson. By investing in your new employee onboarding, you can stand out as an organization that people want to join.

New employees especially value human support, with 42% wanting one-on-one training with outside benefits educators and 36% wanting personalized enrollment help. Having someone guide them through their options can clear up confusion and build confidence from day one.

New employees also showed interest in email and text reminders and group training sessions. Whatever methods you choose, the key is to build an intentional onboarding system that educates employees about their benefits and helps them feel like part of the team.

Employee cost concerns

Employees are understandably concerned about inflation and rising healthcare costs, and it's making an impact on their healthcare decisions.

Over half (55%) of employees reported avoiding going to the doctor at some point last year because of the cost. Delaying or skipping necessary treatment could lead to even more serious, costly health problems for the employee later.

Comparing healthcare costs and services can reduce what employees pay, but fewer than half of employees compare costs regularly.

• 44% always or often compare the costs of treatments or services from different healthcare providers before deciding where to receive care.
• 45% always or often compare the costs of prescription drugs before deciding where to fill their prescription.

87% of employees said they would be interested in a service that would help them find the lowest cost or best value provider. "If employees go out to buy a car, they will research every feature and cost. Healthcare should be no different," says Madson. Employers should offer cost-comparison solutions and make sure to promote them to support healthcare cost containment.

The connection between training, cost savings, and health

Improving healthcare literacy can not only help your employees make more cost-effective decisions — it can also give them the ability to live healthier lives.

For example, 80% of employees who are very or extremely satisfied with their benefits feel encouraged to set personal goals or enroll in programs that promote a healthier lifestyle, compared to 44% who aren't satisfied. Satisfied employees also report that it's easier for them to access the benefits provided to them. Support from Optavise can help increase employee satisfaction and understanding of their benefits, leading to better participation, healthier choices, and lower costs.

When employees understand their healthcare plan, they can be confident in making smarter healthcare decisions. However, 61% of employees who haven't compared costs don't know they can do so before accepting care from a medical professional.

"There's a blind trust, which can be problematic from a cost and even a health perspective," says Madson. Employees need that training and confidence to advocate for themselves.

The power of personalization

Healthcare is not a one-size-fits-all solution. It's no surprise that 96% of employees say that it's at least moderately important that employers offer personalized employee benefit offerings tailored to their individual needs. Some of the top requests included:

• Flexible work hours (61%)
• Customized health insurance plans (59%)
• Wellness programs (48%)
• Mental health (48%)

Personalization is about more than adding benefits. It's also essential to tailor communication to your employees so they can see the value of using these programs.

Communication strategies for employee engagement

Before crafting your benefits communication strategy, start by understanding your workforce. What's the age range? What's the gender breakdown? These demographics can influence how people prefer to receive and engage with information.

Then, consider what approach will resonate with your typical worker. Would they prefer a simple postcard or a detailed white paper? A virtual session or an on-site event? The right format depends on who you're trying to reach.

Besides choosing a channel, consider your overall intent for each employee. "It's not enough to send a message," says Madson. "It has to be personalized based on the care employees need."

Finally, be clear on your end goal. What behavior or understanding are you trying to change or improve? Let that objective guide your messaging.

Using rewards and incentives

According to those surveyed, 70% of employees feel encouraged to set personal health goals or enroll in programs promoting a healthier lifestyle. This includes:

• Healthy eating (64%)
• Fitness tracking (61%)
• Financial wellness (52%)
• Mental health counseling (51%)

Offering wellness discounts and rewards for employees to complete these programs can help push them even further: 86% of employees with access to these discounts or incentives take advantage of their wellness programs. However, only 56% of employees report that their employer offers these incentives. This upfront investment can lead to long-term cost savings while supporting your team.

"An incentive program shows employees that you're there for the right reasons: to help them make better health decisions," says Madson.

Employee subgroups

The Optavise survey also examined employee benefits satisfaction and understanding between different subgroups of employees.

Union vs. non-union

Union employees are more satisfied, educated, and engaged healthcare consumers than non-union employees: 84% of union employees are very or extremely understanding of how their health plan works versus 70% of non-union employees.

Union employees are more likely to receive one-on-one training, to be offered incentives for completing wellness programs, and to receive encouragement to set personal health goals than non-union employees.

That effort from union employers seems to be paying off. Union employees are significantly more likely to compare costs before receiving care (62% versus 36%), and 83% of union employees are very or extremely satisfied with benefits versus 70% of non-union employees.

Generations

Generation Z reports feeling the least confident about their health insurance plan and standard terms. Many are new to the workforce and perhaps have just left their parents' plan, which can cover them until age 26.

That said, the youngest workers appear most eager to learn and use the most effective learning methods: 77% of Gen Z workers reported they would use one-on-one virtual benefit enrollment assistance, if available, versus 50% of Millennials, 49% of Gen X, and 27% of Baby Boomers.

Gen Z and Millennial workers also reported feeling the most concerned about costs. They were the most likely to skip care and use cost comparison services, if available.

However, employers should not assume that more experienced workers understand and appreciate their benefits. Gen X reported the least satisfaction with their health insurance plans compared to other generations, with 30% stating they were somewhat, slightly, or not at all satisfied. Employee engagement matters across all generations.

Industry and company size

Benefits personalization was rated most important for companies with between 500 and 999 employees, with 83% of employees in these companies rating personalization as important — significantly higher than other-sized businesses.

Running benefits for companies of this size can be complex, as they don't have the same resources as larger competitors. "In mid-market, you might have two people running HR. They're in charge of everything. If there aren't enough hours in a day to get your population what they need, Optavise can fill that role so you can focus on the long-term strategies," says Madson.

Looking across industries, employees in education need the most help with their benefits. They are the least satisfied with their benefits and have one of the lowest self-reported understanding, making them ideal candidates for extra support from a service like Optavise.

Making the most of your employee benefit offerings

Employees who have the proper training, personalization, incentives, and support are the ones who feel most satisfied with their workplace benefits.

Optavise can help you deliver exactly that, bridging the gaps to create a benefits experience that works for your people and your bottom line. "If you make the effort, it's amazing what people will do for an employer who cares about them," says Madson.

Learn more about how Optavise can help you support your employees. Request a demo today.