You might be offering your employees a truly outstanding benefits package, but if they don’t understand it, can’t remember it, or don’t see how it fits into their lives, it won’t drive engagement or retention.
Effective benefits communication isn’t just a nice-to-have; it’s a competitive advantage. Organizations that treat it as a strategic function see higher satisfaction, deeper trust, and improved talent outcomes. So why does it so often fall flat?
This guide outlines what’s going wrong with traditional benefits communication and offers practical, proven solutions to get it right.
Why Benefits Communication Matters
Let’s start with the business case.
Employees who understand their benefits are significantly more likely to be satisfied with them, use them, and stay with their employer longer. However, studies show that less than 60% of employees feel educated about the benefits available to them.
That gap is costly. Poor communication leads to:
- Underutilized programs like mental health services, tuition assistance, or dependent care benefits
- Confusion during open enrollment often results in dissatisfaction or unnecessary support calls
- Erosion of trust when employees feel misinformed or surprised by policy changes
In contrast, effective communication helps employees:
- Understand what’s available to them
- Make informed choices
- Feel cared for by their employer
- Use benefits in ways that improve well-being and performance
The "Big B" vs. "Little b" Framework
To improve clarity and relevance, benefits communication should be tailored based on the type of benefit and the level of employee control. A simple framework can help: Big B vs. Little b benefits, plus policies.
Big "B" Benefits
These are the foundational, high-cost benefits like:
- Medical, dental, and vision insurance
- Retirement plans
- Disability and life insurance
They tend to be complex and require decision-support communication, such as comparison tools, charts, calculators, and FAQs.
Little "b" benefits
These include perks that enhance the employee experience, like:
- Gym reimbursements
- Professional development stipends
- Mental health apps
- Flexible work arrangements
They require awareness- and engagement-based communication, such as storytelling, reminders, or employee spotlights.
Policies
Items like PTO, sick time, parental leave, and scheduling aren’t always labeled as benefits, but they shape the employee experience just as much, and often come with less clarity.
These require accessibility-first communication: employees should be able to find what they need quickly, clearly, and with confidence.
“Happening to You” vs. “Your Choice”
Another overlooked dynamic in benefits communication is the difference between:
- “Happening to you” changes, like increased premiums or reduced coverage
- “Your choice” opportunities, like new voluntary benefits or enhancements
These situations require vastly different messaging strategies.
- “Happening to you” changes call for careful change management with a clear rationale, empathetic tone, and transparency.
- “Your choice” communications can take a more excitement-focused tone and emphasize new options and value.
Categorizing your benefits using both the Big B/Little b lens and this change impact lens helps tailor your messaging to how employees experience each benefit, and how they feel about it.
Why Year-Round Communication Wins
Too many organizations rely on a single annual communication cycle, usually tied to open enrollment. But neuroscience tells us that’s not enough.
According to the Ebbinghaus Forgetting Curve, people forget about 50% of new information within an hour, and up to 90% within a week, unless it’s reinforced.
If employees are expected to make major decisions once a year, based on information from a single email or info session, it’s no wonder confusion is common.
The Better Way: Drip Campaigns
Instead of overloading employees once a year, successful organizations use a drip campaign approach, delivering bite-sized communication at regular intervals throughout the year.
Examples include:
- Monthly "benefit spotlight" features
- Text reminders about deadlines or seasonal resources
- Quarterly videos from HR or employee testimonials
- Timely communications tied to life moments (e.g., back-to-school, tax season, holidays)
Getting Beyond the Inbox
Email has long been the default for benefits communication, but it’s also increasingly ineffective. The average employee receives over 120 emails per day. Important information can easily be buried.
To break through the noise, use diverse, modern communication channels:
- Short videos that explain or highlight benefits
- Text messages for urgent reminders
- Infographics and decision trees for complex benefits
- Peer-to-peer storytelling to add emotional relevance
- Interactive hubs or employee portals for self-service access
Modernizing how benefits are delivered isn’t about flash; it’s about function. The goal is to reach employees in ways that match their habits and needs.
Communicating the Hard Stuff with Trust
Benefits communication becomes even more critical when delivering difficult news, like policy alignment after a merger, cost increases, or program reductions.
In these moments, tone, timing, and transparency are everything.
The Trust Equation
Transparency + Timing + Tone = Trust
- Transparency: Be honest about what’s changing, why it’s happening, and how it affects employees.
- Timing: Share information early enough for employees to understand, prepare, and ask questions.
- Tone: Show empathy and clarity. Acknowledge the change’s impact and highlight what you’re doing to help.
Never let employees learn about cuts through rumors or confusing explanations from managers. Equip leaders and HR with talking points, FAQs, and training to cascade messages confidently and consistently.
Don’t Forget the Follow-Through
Once changes are communicated, it’s important to continue listening and follow through.
Strategies include:
- Holding office hours or Q&A sessions
- Running pulse surveys or focus groups
- Regular rounding by HR or leaders
- Revisiting the change after 30, 60, or 90 days to share updates or adjustments
When employees see that their feedback is acknowledged and acted upon, trust is reinforced; even during difficult transitions.
Final Takeaways
When done well, benefits communication isn’t just about pushing out information; it’s about building connection and clarity. Here’s how to get started:
- Use the Big B vs. Little b framework to structure your messaging by benefit type
- Distinguish “happening to you” vs. “your choice” changes to guide tone and delivery
- Adopt a year-round strategy with regular, relevant touchpoints
- Diversify your channels to reach employees in ways that resonate
- Manage hard conversations with transparency and empathy, followed by consistent follow-through
Your benefits already reflect how much you invest in your workforce. Make sure your communication strategy reflects that, too.
Want support reimagining how you communicate your benefits? Schedule a conversation with us to see what a strategic, modern approach could look like for your workforce.
