Why Your Employees Aren’t Engaging With Your Benefits — And How to Fix It

Employee benefits – when done right – are what job seekers prioritize in their search, and what can have a profound impact on whether employees remain loyal. And for companies? Benefits are one of the most significant investments a company makes. (In 2024 alone, benefit costs to the employer came to 29.7 percent for private industry workers.) Yet countless HR leaders struggle with low engagement in their benefits programs. If you’re seeing lackluster participation rates or employees expressing confusion about what’s available to them, there’s hope. 

Why Employees Aren’t Engaging With Their Benefits

1. They Don’t Understand (or Know) What’s Available

Benefits packages can be complex, and many employees simply don’t know what’s included or how to take advantage of them. If your benefits communication is limited to a dense employee benefit guide (which they may or may not be reading or fully understanding) or a once-a-year open enrollment meeting, it’s no surprise engagement is low.

2. The Process Feels Overwhelming

If taking full advantage of benefits requires navigating confusing portals, deciphering insurance jargon, or completing lengthy paperwork, employees may give up before they even start. 

3. They Don’t See Immediate Relevance

An employee might not think about their 401(k) until retirement feels closer, or they may not consider mental health benefits until they’re facing a crisis. Without clear connections to their current needs, employees may overlook valuable resources.

4. Lack of Ongoing Communication

One email or meeting a year isn’t enough. Employees need regular, simple reminders about their benefits, especially when life events (like having a baby or buying a home) make certain offerings more relevant. Plus, regular communication will ensure that you’ll get in front of your employees when they need it most. The flurry of information coming at them at enrollment time can be overwhelming – it’s best to communicate the value of their benefits at other times of the year as well, when things are quieter.

5. They Don’t Trust the System

Some employees fear hidden costs, complex fine print, or that using benefits (like mental health support or family leave) may negatively impact their career. Addressing these concerns head-on is crucial. Be clear about what is confidential, what is included in their premiums, and everything in between.

How to Fix It

1. Simplify the Message

Ditch the corporate jargon. Break benefits down into clear, digestible messages that highlight key advantages. Consider using infographics, FAQs, bullet points, and short videos to explain offerings in a way that’s easy to understand.

2. Make Access Seamless

Ensure benefits are easy to find and use. A mobile-friendly platform, single sign-on access, and user-friendly dashboards can reduce frustration and increase adoption. The more user-friendly the system is, the more engagement you’ll have.

3. Personalize Communication

Segment your messaging so employees receive information that’s relevant to them — at the right time. A new parent should hear about childcare benefits soon after (or even before) they deliver, while a recent hire may need a retirement savings primer at the point of hire. Segmenting also ensures that employees don’t receive information that’s irrelevant – which can result in them ignoring all communications.

4. Increase Touchpoints

Regular, multi-channel communication is key. Use email, Slack, intranet posts, and in-person meetings to reinforce what’s available. Hosting quarterly benefits Q&As or Town Hall sessions can also encourage engagement.

5. Create a Culture of Trust

Make it clear that using benefits won’t hurt employees’ career prospects. Share testimonials from employees who have benefited from the programs, and ensure leadership is vocal about their support.

If employees aren’t engaging with their benefits, don’t assume it’s because they don’t need them. Chances are, they don’t fully understand them, they find them too hard to access, or they don’t see their immediate value. By simplifying communication, making benefits more accessible, and reinforcing their value regularly, HR leaders can dramatically increase participation and ensure employees take full advantage of the support available to them.

Let's Take the Next Step Together

Helping companies leverage communication to optimize employee engagement is at the heart of the CARRY™ Consulting process. Book a consultation with CARRY™ Consulting today to assess your benefits and start driving real change in your organization.