You offer competitive benefits. You’ve negotiated strong plans. Maybe you’ve even added voluntary options or employer HSA contributions.
But if employees don’t understand what they’re offered — or how to use it — you’re leaving value on the table.
Poor benefits communication is one of the most overlooked and expensive issues facing employers today. It leads to low engagement, unnecessary claims, increased HR workload, and even turnover.
Here’s what it’s really costing your business — and how to fix it.
The True Cost of Confusion
Poor benefits communication can impact your business in ways you may not realize:
- Underutilized plans: Employees default to expensive options because they don’t understand lower-cost alternatives.
- Higher claims: Without guidance, employees may go out-of-network or use ER visits for non-emergencies.
- Low perceived value: If employees don’t grasp the total compensation package, they’re more likely to leave for a marginal pay increase elsewhere.
- HR burnout: Your team spends time answering the same questions over and over during onboarding or open enrollment.
All of this can translate to higher costs, lower retention, and lost productivity.
Signs Your Communication Strategy Needs Work
- Employees ask, “What do I have again?” or “When does coverage start?”
- Participation in voluntary or tax-advantaged benefits (like HSA or FSA) is low
- You receive frequent questions about claims, ID cards, or provider networks
- Managers or supervisors feel unequipped to answer basic benefits questions
1. Simplify the Language
Your plan documents might be 50 pages long — but your communication shouldn’t be. Use plain language, visuals, and short videos to explain core concepts.
2. Use Multi-Channel Communication
Email alone won’t cut it. Use onboarding packets, one-pagers, lunch-and-learns, a benefits website, and quick video walkthroughs to meet employees where they are.
3. Start Early, Communicate Often
Don’t wait until open enrollment to talk about benefits. Ongoing education leads to smarter choices and more engagement.
4. Leverage Technology
Provide easy access to plan details, costs, and comparisons through a benefits portal. We build custom benefits websites for our clients to simplify everything from ID cards to FAQs.
5. Partner with a Proactive Advisor
At Cypress Benefit Solutions, we don’t just help you pick plans — we help you explain them in a way employees will actually understand and use.
Offering great benefits isn’t enough anymore. You have to communicate them clearly, consistently, and effectively — or risk wasting your investment.
