CBIZ : Benefits Education for Employees New to the Workforce (and Others)

Employee benefits aren't always simple. In fact, for many employees - in particular those new to the workforce - they're downright confusing. Look at basic health insurance term knowledge, for example. Only 7% of individuals can define terms like premium, deductible and coinsurance, according to UnitedHealthcare. And that limited understanding can result in significant and often unnecessary expenses for both employees and employers. To put it monetarily, low health literacy is estimated to cost between $106 billion and $238 billion annually, according to the National Library of Medicine.

The good news is that employees can be taught how to be wise benefits consumers, and the earlier their training starts, the better. Properly educating employees can help keep costs down for everyone and improve overall wellbeing. This article outlines five ways employers can start informing employees about their benefits.

1. Start with Benefits 101.

If employees aren't working in the insurance industry, chances are they don't know basic terminology, especially if they're just entering the workforce. That's why employers should start educating with Benefits 101 initiatives, assuming employees have no base knowledge. Resources in this area cover insurance basics, such as common terms, group health coverage ins and outs, vesting schedules and enrollment period restrictions. Establishing these concepts early will allow them to maximize their benefits.

2. Explain what's in it for them.

At the core of any transactional conversation is the question of 'what's in it for me?' Employees, especially younger ones, will undoubtedly want to understand why it's worth it to learn about benefits. In addition to teaching employees the basics, employers should also provide education on more advanced insurance aspects, such as provider networks and how a little research can save employees thousands of dollars on medical services and procedures. Be sure to explain that understanding health benefits can also help them make smarter health care choices and present opportunities for greater investment potential.

3. Vary the channels.

White papers and handouts from insurance providers are good places to start, but young employees typically respond better to more engaging channels. Vary educational messaging with a variety of formats, such as email, virtual seminars, texts, videos, company intranet page, mail-home flyers and comprehensive online packets.

4. Don't stop educating.

Benefits literacy isn't something achieved all at once; education should continue year-round. There are always new topics to cover, such as when to request a life event, how to use telemedicine, how to fill a prescription, when to visit urgent care vs. the emergency room and who qualifies as a dependent. Implement a communication schedule each year, touching on different benefits topics each month. Doing so can help tremendously by the time open enrollment comes.

5. Be available for questions.

No education campaign will turn every employee into a benefits guru; some employees will still have questions no matter how thorough their educational resources are. Have a dedicated person on the HR team to help answer benefits-related questions. This individual should be available to respond to emails and phone calls, as well as attend in-person or virtual meetings. Additionally, consider holding one-on-one meetings to encourage employees to ask questions that they may not feel comfortable asking in larger groups.

Employers have a responsibility to educate their workforce about their benefits. Employees can't be expected to be wise health care consumers if they don't understand them.