Young employees consistently underuse their benefits packages because they do not understand what is available, how it works, or why it matters. The result: low enrollment in voluntary benefits, poor health plan selection, and missed opportunities like HSA contributions and 401(k) matches that cost them thousands over time.
For employers, benefits education is not a nice-to-have. It is a retention tool. Employees who understand their benefits are more engaged and less likely to leave for a competitor offering a marginally better package. For companies managing multiple insurance and benefits lines including SBA-required hazard insurance on financed property, the benefits program is one piece of the total risk management picture.
Key Takeaways
- The gap: 40%+ of employees under 30 cannot explain their own health plan deductible
- Impact: Low enrollment in voluntary benefits and poor plan selection cost employees thousands
- Education format: Short videos, interactive tools, and one-on-one sessions outperform printed packets
- Open enrollment: Benefits education should start 30 days before open enrollment, not the week of
- Retention lever: Employees who understand their benefits value them more and stay longer
Disclaimer: This article is for informational purposes only. Consult our licensed advisors for guidance specific to your situation.
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