Ask an HR Pro: How Can I Encourage Employees to Use Their Benefits?

To attract and retain top talent in a competitive market, employers need to find ways to stand out. Offering a comprehensive benefits package is one strategy that can get you more applicants as well as help keep the employees you already have. In fact, according to our 2024 Hiring and Job Search Outlook Report, 53% of employees said benefits and perks were one of the most important aspects to them in their next job (besides salary).

However, creating an outstanding benefits package is just the first step; getting your employees to understand and fully use their benefits can be a challenge.

We asked Vickie Krolak, one of iHire’s HR Consultants, for her advice on how to encourage employees to use their benefits so they get the most out of what you’re offering, stay engaged, and remain with your organization long-term.

What Impacts Employee Benefit Utilization?

“First, you need to understand why your employees might not be using their benefits,” Krolak began. “For example, is it a lack of awareness? Or could it be that your benefits are complex and difficult to understand?”

It’s also possible that your workplace perks are outdated or don’t align with your employees’ current preferences. Identifying these issues will enable you to come up with an effective strategy for increasing employee benefit utilization, which we’ll dive into next.

How to Encourage Employees to Use Their Benefits

Krolak shared three ways you can help your staff not only understand but also use their benefits to the fullest.

“Start by improving your employee benefits communication strategy. Clear, consistent, and ongoing communication is key for all team members, not just new hires during their onboarding period,” Krolak said. “Review your materials to ensure they’re thorough, easy to understand, easy to find, and clearly show the value of your perks.”

For example, set up a central folder where employees can find everything they need: benefits guide, FAQs, links to carriers’ websites and resources, etc.

Next, think about the different ways you’re sharing information about employee benefits.

“Again, simply giving new hires a benefits handout during their first week isn’t enough. At least once a year, especially right after open enrollment and a new plan year begins, hold live training sessions or lunch ‘n’ learns with your entire company to remind them of your benefits and how they can access them,” advised Krolak. “You could even invite your benefits broker or another rep to attend and answer questions on the spot as well as provide their own materials.”

Also make it clear to your team members that they can reach out privately to HR with any benefits questions or if they need personal assistance with using their perks.

“My third tip is to try your best to make it easy for your employees to use their benefits and workplace perks,” Krolak said. “Keep enrollment and utilization as simple as possible with online platforms and mobile apps, for example.”

Get Feedback on Your Benefits Package

Once your employee benefits communication strategy is in good shape and you’re seeing improvements, remember to ask for feedback to ensure you stay on the right track.

“Regularly seek input from employees to gauge satisfaction and gather suggestions on benefits they’d like to have as well as those they don’t. Yearly surveys and frequent pulse checks are a great way to do this,” Krolak advised. “Always be open to feedback, even when it’s not what you want to hear. Transparency leads to positive change!”

With these strategies, you can empower your employees to make the most of the valuable benefits you provide. By championing benefit utilization, you are not only investing in the well-being of your team but also in the productivity and success of your business.

Get even more expert tips from our HR pros in our Employer Resource Center. You can also book a free consultation with our HR Services & Consulting team if personalized HR guidance and support could benefit your organization.