Why Employee Benefits Education Matters for Young Employees
Understanding employee benefits is crucial, especially for younger workers who may find terms like premium, deductible, and coinsurance confusing. In fact, only 7% of individuals can define these basic health insurance terms, leading to costly mistakes. Low health literacy costs employers and employees $106 billion to $238 billion annually. The solution? Employee benefits education. Early and ongoing training helps employees make informed choices, reducing costs and improving well-being.
1. Start with Benefits 101: Teach the Basics
For employees new to benefits, start with Benefits 101—covering fundamental terms like health insurance basics, group health coverage, vesting, and open enrollment.
Establishing these concepts early helps employees use their benefits effectively.
2. Highlight the Personal Value: What's in It for Them?
Younger employees need to understand the personal value of learning about benefits.
Explain how knowing about provider networks, researching costs, and understanding coverage can lead to significant savings and smarter healthcare decisions.
3. Use Engaging Formats to Capture Attention
Instead of traditional handouts, use interactive formats like emails, videos, PowerPoints, and flyers to keep employees engaged. A variety of formats ensures better benefits literacy and greater retention.
4. Ongoing Education: Keep It Consistent
Benefits education should be year-round, not just during open enrollment.
Regularly communicate about topics like telemedicine, prescriptions, and urgent care options to keep employees informed and prepared.
5. Provide Support for Questions
No matter how comprehensive the education, employees will still have questions.
Ensure a dedicated HR expert is available to answer questions via email or one-on-one meetings, especially during open enrollment.
Conclusion
Educating young employees about their benefits is essential for reducing costs and improving decision-making. GBS Benefits, Inc. offers tailored employee education materials to help you build a successful benefits education program.
Contact GBS to learn more.
