The benefits literacy gap shows up every year, usually during open enrollment and again when employees try to use their benefits. Plans may be thoughtfully designed and competitively priced, yet employees remain unsure of what they have, how it all works, or when to use their benefits. That gap is not due to a lack of educational resources such as Benefits Guides or HR support. It is about how benefits information is communicated and reinforced over time.
HR teams play a critical role in managing benefits, especially during open enrollment. The challenge is not responsibility. It is depth and reinforcement. Benefits involve plan design, claims behavior, regulatory rules, and vendor complexity that can be difficult to translate into clear, everyday language. Without consistent communication and the right partners, even well run programs can leave employees unsure of what they have chosen or how to use it.
How This Shows Up in Practice
Most organizations recognize the pattern. Open enrollment comes and goes. Employees make elections, often quickly and with limited context. Then questions start to surface months later when care is needed, medical bills arrive, or a life event occurs. At that point, confusion turns into frustration, and HR teams spend significant time answering questions, correcting misunderstandings, and resolving issues that could have been avoided with clearer communication and education earlier on.
Over time, benefits start to feel transactional rather than supportive. The program technically works, but employees do not feel confident using it.
Why Communication and Education Matter More Than Another Tool
Many organizations respond to benefits confusion by adding new tools, platforms, or one time communications. Those can be helpful, especially when they make information easier to access. But on their own, tools do not build understanding.
Benefits literacy improves when communication is paired with education and reinforced throughout the year, not just during open enrollment. Employees need information delivered in ways that fit how they actually consume it. They also need reminders that connect benefits to real life moments, not just plan documents.
This is where partnership becomes critical. HR should not be expected to do this alone. Brokers, carriers, and communication partners each play an important role in helping translate benefits into clear, usable information that employees can act on.
What Starts to Close the Gap
Organizations that make real progress tend to focus on a few practical principles.
Consistency over volume
Fewer messages, repeated thoughtfully, are more effective than a flood of information once a year. A short reminder about preventive care, an HSA contribution deadline, or a wellness incentive can be more impactful than a long guide employees never revisit.
Plain language, not plan language
Employees do not think in deductibles, coinsurance, or networks. Communication works best when it explains benefits in simple terms, using real examples. For example, what happens after a doctor visit, what an explanation of benefits means, or when a provider bill should arrive.
Meet employees where they are
Education does not have to be formal or time consuming. Short videos, quick emails, text messages, links to trusted resources, or brief 15 to 30 minute sessions in Teams or Slack channels can go a long way. Different employees learn in different ways, so using multiple formats matters.
Reinforcement beyond open enrollment
Benefits education should continue after elections are made. Reminding employees about incentives such as money back for annual physicals, wellness programs, or gym memberships helps turn benefits into something they actually use rather than forget.
Aligned partners
When HR, brokers, and communication partners are aligned on messaging and timing, employees receive clearer and more consistent guidance. That alignment reduces confusion and builds confidence over time.
Where Real Understanding Begins
Open enrollment is not the moment when benefits literacy is mastered. For many employees, it is simply the moment when decisions are made. The real understanding often starts after the plan year begins, when people can slow down, ask questions, and connect what they enrolled in to real life situations.
That is where consistent communication and education make the biggest difference. Short reminders, simple explanations, and timely education throughout the year help employees move from enrollment to understanding. Over time, that reinforcement builds confidence and reduces confusion when benefits are actually used.
Closing the Gap Together
Benefits are a significant investment, and they only create value when employees understand and use them effectively. Closing the benefits literacy gap does not require HR to become benefits designers or insurance experts. It requires clarity, partnership, and a shared commitment to communication and education that supports employees throughout the year.
When HR leads the conversation and partners intentionally with brokers and communication experts, benefits become easier to understand, easier to use, and far more impactful. That is how the gap starts to close, one clear message at a time.
HCM Tech Advisory has over 20 years of experience and expertise in HR consulting, with a focus in employee benefits administration and HR technology. To learn more or request a complimentary consulting review, contact us at info@hcmtechadvisory.com.
