Business leaders put a lot of time, energy and budget into offering healthcare benefits plans that check all the right boxes. It’s a critical part of running a successful business, both helping you attract quality talent to your company and keeping your workforce healthy and productive. However, according to a recent study by Arizent, the majority of employees struggle with healthcare literacy. For example, only 31% of employees were able to score a 70% or above on a quiz of common healthcare terms such as co-insurance and HMO. As a result, they can’t make the best healthcare decisions or take full advantage of the benefits they have, which often leads to additional costs and unnecessary stress. You can create a win-win for your organization and your employees by empowering them with the knowledge to successfully navigate their benefits.

What’s in it for you?

1. Happier, More Productive Employees

When employees are overwhelmed by medical debt or unexpected healthcare costs, their stress levels soar, leading to decreased focus and engagement at work. By improving benefits literacy, your employees can better understand their coverage, avoid surprise expenses, and reduce financial stress, resulting in a more focused and productive workforce. 

2. Better Utilized Benefits

Many valuable benefits go underutilized simply because employees are unaware of them or don't know how to access them. Educated employees are more likely to take full advantage of offerings such as wellness programs and telehealth options, leading to healthier, more satisfied employees and, ultimately, cost savings for the company. Stop wasting money on unused benefits. 

3. Enhanced Health Outcomes

Employees who understand their benefits are more likely to engage in preventive care, seek timely medical attention, and adhere to treatment plans. This proactive approach not only improves individual health outcomes but also reduces long-term costs associated with chronic conditions and emergency care. With healthier employees, the organization benefits from lower healthcare costs and less absenteeism.

4. Employee Satisfaction and Retention

A comprehensive benefits package is a significant factor in attracting and retaining top talent. However, the value of these benefits diminishes if employees don’t understand or appreciate them. By prioritizing benefits literacy, employers can increase employee satisfaction and retention, as employees feel more valued and supported in managing their health and well-being.

How can you improve benefits literacy?

1. Provide Ongoing Education

Benefits literacy is not a one-time effort. Regular updates, refreshers, and open enrollment meetings keep employees informed about new benefits and changes to existing ones. Encourage questions and provide timely answers to ensure continuous learning and adaptation.

2. Utilize Multiple Channels

Leverage various communication channels to reach employees, including emails, webinars, workshops, and interactive online platforms. Different employees prefer different methods of receiving information, so a multi-channel approach ensures broader engagement and accessibility.

3. Simplify the Content

Avoid using jargon and complex terms when explaining benefits. Use simple, straightforward language and provide real-life examples to illustrate how benefits can be utilized. Clear, concise communication is key to ensuring employees understand their options.

4. Offer Personalized Guidance

Help employees understand their specific options and make better decisions by offering one-on-one sessions or digital tools. Personalized guidance makes the information more relevant and actionable for employees.

5. Leverage Technology

Use technology to your advantage by offering digital resources such as mobile apps, online portals, and interactive tools that allow employees to explore and understand their benefits at their own pace. Technology can make benefits information more accessible and engaging.

In a competitive business environment, a well-informed employee is a healthier, more productive, and more loyal employee. And, as the healthcare and benefits landscape continues to evolve, focusing on benefits literacy will ensure your organization stays ahead, fostering a culture of well-being and financial security. 

Bottom line, people are now making career decisions based on employee benefits as much as salary. 

If your insurance broker isn’t helping you discover strategies like improving literacy to help you get the most out of your healthcare investment, it’s probably time to talk to a healthcare consultant.

Download The Top Power Questions to Ask Your Broker & Insurance Company for insights on how to gain more control over the future of your benefit plans.