What's Happening?
As the 2026 open enrollment season approaches, research from LIMRA suggests that employers should begin educating workers about their benefits now to increase engagement. The study reveals that many employees struggle to understand their benefits, with
fewer than 60% feeling knowledgeable about their insurance and retirement plans. Younger workers, in particular, report lower levels of understanding. This lack of knowledge can lead to lower participation rates and reduced financial protection for employees. Employers are encouraged to improve benefits communication through multiple channels, personalized guidance, and year-round communication to enhance understanding and satisfaction.
Why It's Important?
Effective benefits education is crucial for maximizing employee engagement and satisfaction. When employees understand their benefits, they are more likely to participate in programs that provide essential financial protection. This can lead to better health outcomes, increased job satisfaction, and improved retention rates. For employers, well-informed employees represent a better return on investment for the benefits offered. The findings highlight the need for a comprehensive approach to benefits communication, involving carriers, brokers, and technology providers. By addressing these challenges, employers can enhance the value of their benefits packages and support their workforce's financial well-being.
What's Next?
Employers are expected to implement strategies to improve benefits education ahead of the 2026 enrollment period. This may include offering personalized guidance, using diverse communication channels, and providing total compensation statements. As companies enhance their communication efforts, they may see increased participation in benefits programs and higher employee satisfaction. The success of these initiatives could influence future benefits offerings and communication strategies. Employers will need to collaborate with industry stakeholders to ensure that educational resources are effective and accessible to all employees.
Beyond the Headlines
The challenges in benefits education reflect broader issues in workplace communication and employee engagement. As the workforce becomes more diverse, employers must adapt their communication strategies to meet the needs of different employee groups. This includes considering generational differences in learning preferences and technology use. The emphasis on benefits education also underscores the importance of financial literacy in the workplace. By improving understanding of benefits, employers can empower employees to make informed decisions about their financial futures, contributing to overall financial security and well-being.
