Through this article, Laura M. Dilallo draws on nearly three decades in benefits to highlight why employees often misunderstand or overlook their options and what companies can do about it. She explains how more transparent communication, diverse offerings, and ongoing evaluation can transform benefits from a costly obligation into a valid driver of employee engagement and loyalty.
As a benefits professional for almost three decades, I’ve often wondered why employees tend to engage with their benefits only when they need to use them. In many cases, that’s too late. If they haven’t signed up for coverage, they’re told they must wait until the next annual open enrollment or a qualifying life event. After thirty years in this field, I understand—most people simply don’t share the same passion for benefits that I do.
The truth is, the value of benefits and the need to understand them are often underrated. Employees tell me benefit materials aren’t exciting to read and can feel overwhelming with terms like pre-tax versus post-tax, eligibility, premiums, out-of-pocket maximums, and deductibles. Add in the complexity of Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Flexible Spending Accounts (FSAs), and it’s no surprise that many employees avoid enrolling altogether.
Benefits are one of the company's largest investments after salaries. If employees don’t understand or value them, that investment is wasted. Clear communication ensures benefits drive satisfaction, retention, and well-being
Today, companies offer much more than just core benefits like medical, dental, and vision. Voluntary options now often include supplemental life insurance, group accident and critical illness coverage, identity theft protection, and even pet insurance. While these additions give employees more choice, they can make the landscape harder to navigate. Still, I don’t believe in a one-size-fits-all approach. Employers need to provide a wide array of benefits and clear explanations so employees can find what’s right for them.
That’s why communication is so critical. Easy-to-read benefit guides should be the baseline. Short videos, flyers posted in common areas, and digital reminders add accessibility. Many medium and large companies also use dedicated benefit call centers, providing employees real-time support and guidance during enrollment. These tools and a knowledgeable benefits team demonstrate that a company is willing to invest in its people—their health, satisfaction, and future.
Of course, offering benefits is also a significant financial investment. After salaries, benefits are often a company’s most important expense. That makes it vital to design programs that employees use and value. Benefits must be affordable, aligned with workforce needs, and compliant with state and federal requirements.
In today’s competitive job market, benefits are more than a safety net— they’re a powerful tool for attracting and retaining talent. Well-designed programs improve engagement, productivity, well-being, and work-life balance. However, companies shouldn’t assume that what worked five years ago is still effective today. Reevaluating benefit offerings regularly is key. If employees aren’t utilizing what’s available, find out why. The benefits team must step up communication if the barrier is a lack of understanding or appreciation.
Ultimately, creativity makes the difference. By finding new ways to explain benefits, connect with employees, and highlight their value, companies ensure this critical—and costly—part of their business is appreciated and fully utilized. In the end, that investment pays off for both employees and employers.
