Benefits are one of the biggest investments a small business makes in its people. But if your employees don't understand what they have, they won't use it, and they won't value it the way you hoped.
The good news is that you don't need a fancy benefits portal to fix this. You just need to explain things clearly.
1. Start with "what's changing"
Most employees want to know one thing first: what's different this year? A one-page summary is often enough:
What's new or different
What's staying the same
Any changes to what employees pay
The enrollment deadline
2. Explain the terms in plain language
Insurance words confuse almost everyone. Define the big ones:
Premium: what you pay each paycheck to have coverage
Deductible: what you pay for covered care before the plan starts sharing costs
Copay: a set amount you pay for certain services, like a doctor visit
Coinsurance: your share of the cost after you meet your deductible, usually a percentage
Out-of-pocket maximum: the most you'll pay for covered care in a plan year
3. Use real-life examples
"Here's what an urgent care visit might look like on each plan" is much easier to understand than a chart. Walk through a few common situations: a regular checkup, a prescription, an urgent care visit. Your benefits advisor or carrier can help with the details, and the plan's Summary of Benefits and Coverage is a good place to start.
4. Give people more than one way to learn
Some people want a quick meeting. Others want something in writing they can share with a spouse at home. Try a mix:
A short group meeting or video
A written summary
A time when employees can ask questions privately
5. Point out the benefits people forget
Dental, vision, life and disability insurance, telehealth, an employee assistance program, HSA or FSA options. Many employees don't realize what's available until they need it.
6. Make the deadline impossible to miss
Share the enrollment deadline early and remind people more than once. Let them know that once enrollment closes, changes usually have to wait until next year unless they have a qualifying life event, like getting married or having a baby.
7. Follow up after enrollment
Ask employees to check their confirmation and ID cards when they arrive. It's much easier to fix a mistake in January than in June.
The bottom line
A little explanation goes a long way. When employees understand their benefits, they're more likely to use them and appreciate them. If you'd like to talk through your employee benefits options, feel free to reach out.
This article is general information, not legal or insurance advice.
Sources
Standard benefits terminology. No legal claims cited.