Unlock the value of your investment with smarter communication

Your benefits package is one of the most significant investments your organization makes in its people, and today’s employers are investing it more than ever before. From comprehensive medical insurance plans to expanded wellbeing programs, financial wellness tools, and voluntary benefits, today’s offerings are broader and more sophisticated than in the past. Yet for many employers, that investment may not be delivering its full value. The underlying reason is typically not the lack of offerings but rather a lack of connection and engagement.

Introduction

Recent research reveals that employees who don’t fully understand their benefits are less likely to use or value them. This situation has created a communication disconnect between what benefits employers provide and what employees perceive, understand, and use. It can have a profound impact on workforce engagement, retention, healthcare outcomes, and the overall return on the investment employers make in their programs.

In today’s benefits environment, with increasing healthcare costs, evolving workforce expectations, and growing complexity, how benefits are communicated is just as important as what benefits are offered.

Fortunately, employers can seize this moment and strengthen communication strategies to help improve employee understanding, increase utilization, and reinforce the role benefits can play in supporting overall wellbeing. When communications are more personalized, consistent, and actionable, employers also have the potential to unlock more value from existing benefits withoutincreasing spend.

In this whitepaper, we explore the drivers of the communication disconnect, the impact it has on organizations, and the practical steps employers can take to close the gap. It draws on the themes introduced in The Baldwin Group’s Employee Benefits 2026 State of the Market & Outlook and outlines what employers can do to turn benefits communication into a strategic advantage and help ensure that benefits investments work as hard as the employees they are designed to support.

The benefits opportunity: From investment to impact

Over the past decade, employee benefits have evolved from a foundational offering to a strategic differentiator. Employers now view benefits as a critical tool for attracting talent, supporting wellbeing, and reinforcing organizational culture.

At the same time, the scope of benefits offerings has expanded significantly. In addition to traditional medical, dental, and retirement plans, many employers now provide:

• Mental health and behavioral health services
• Financial wellness and student loan assistance programs
• Flexible work schedules and leave benefits
• Voluntary insurance offerings
• Digital health tools
• Career development resources

While this broader portfolio of benefits represents meaningful effort and investment, this expansion has also introduced a new level of complexity as employees navigate a wider range of options, each with its own terminology, cost structure, and decision framework. Although employers have expanded choice to meet diverse needs, many employees lack the guidance needed to effectively evaluate and act on those choices.

Broader workforce dynamics add another layer of complexity. Today, U.S. employees are managing financial pressures, healthcare decisions, and long-term planning needs. Financial stress alone costs U.S. employers more than $1.1 trillion annually in lost productivity, underscoring the importance of benefits that are not only available but accessible to employees when they need them.⁷

Work hours per week dealing with financial issues

The communication disconnect between employees and their benefits

The gap between benefits design and employee experience is the result of several interconnected challenges that, together, can create friction in how employees learn about, evaluate, and engage with their benefits.

Complexity becomes a barrier

As benefits offerings grow more comprehensive, they also become more difficult to navigate. Employees are expected to make decisions about deductibles, contribution levels, network structures, and supplemental coverage all within a short open enrollment period. So, it’s not surprising that a recent Franklin Templeton 2026 Voice of the American Workplace survey found that 53% of employees say they feel overwhelmed by their benefits choices.

Without clear guidance, employees can feel stuck and may default to familiar options, defer decisions altogether, or select plans that do not align with their needs. In each case, the result is often the same: benefits programs that should deliver the intended value… don’t.

When timing matters as much as messaging

For many organizations, benefits communication is concentrated around annual open enrollment. While this period is indeed critical, it is not sufficient.

In fact, a recent study found that nearly three-quarters (73%) of employees preferred receiving benefits information more frequently throughout the year,⁹ highlighting strong demand for ongoing communication beyond open enrollment.

This timing gap matters. Employees are expected to make complex decisions during enrollment, but their need for information extends beyond that window. For instance, life events, healthcare needs, and financial decisions occur year-round for employees, yet communication from employers may not.

The right message in the right format

Email remains the most common communication channel for benefits information. However, its effectiveness is typically limited. Only 48% of employees say email is the most helpful format for benefits education.¹⁰ As LIMRA’s 2025 BEAT survey revealed, employees consistently prefer more interactive, personalized, and muti-channel approaches that include one-on-one conversations, live or virtual support sessions, and tools that allow them to model different scenarios.

When personalization drives participation

Today’s workforce spans multiple generations, life stages, and financial situations. A single communication strategy may not address all these perspectives effectively.

Without segmentation, communication can feel irrelevant. Employees may struggle to see how benefits apply to their own needs, whether that’s student loan support, family health insurance coverage, or retirement planning. When relevance declines, engagement tends to follow.

The total compensation opportunity

Today, benefits represent a substantial portion of total compensation. Employer-paid healthcare contributions, retirement matching, and supplemental programs collectively form what is often referred to as the “hidden paycheck.”

Yet most employees may not see that. According to LIMRA, only 42% of employees report receiving total compensation statements, leaving many without a clear view of the full value of their benefits.¹² This can influence how they evaluate their employment situation and how they compare opportunities in the broader market.

A single summary of employer-paid contributions to health coverage, retirement, and other perks gives employees a clearer view of their full earnings beyond take-home pay. That clarity builds appreciation for their benefits and strengthens ties to their employer.

The link between communication, engagement, and value

The communication disconnect impacts more than benefits administration. It influences how employees experience their workplace, how they make decisions, and how organizations generate value from their investments in benefits programs.

Communication – a driver of engagement and retention

A compelling benefits package is one of the most powerful levers an organization has for retaining top talent, but only when employees understand its full value. Research shows that more than six in 10 employees cite their benefits package as a key factor in their decision to stay with their employer.¹³ Yet that retention potential is largely unrealized when poor communication leaves employees unable to recognize or articulate what they’re receiving. The return on a benefits investment is inseparable from the quality of benefits communication.

Communication – a foundation for financial wellbeing and productivity

Employees increasingly expect their employers to help them navigate financial uncertainty. But support that goes uncommunicated, typically fails to deliver. Employees who lack clarity about available resources are more likely to experience financial stress. That stress follows them into the workplace as reduced focus, lower productivity, and higher absenteeism. Organizations that invest in clear, accessible benefits communication give employees the confidence to make sound financial and health decisions.

Literacy – an influence on healthcare utilization and cost

How well employees understand their benefits determines how, and whether, they use them. Employees who lack clarity about their coverage may delay necessary care, default to higher-cost service options, or forgo preventive measures entirely. Conversely, employees who understand their coverage are more likely to make cost-effective, timely healthcare decisions—helping improve outcomes and plan efficiency.

Equitable communication – a business and cultural imperative

Communication gaps do not affect all employees equally. Income level, language barriers, digital access, and varying degrees of familiarity with benefits systems all influence whether an employee can meaningfully engage with the programs available to them. Left unaddressed, these disparities create an uneven employee experience where the value of a benefits investment is concentrated among those already best positioned to navigate it. Closing these gaps is both a workforce equity priority and a business one. Ensuring that every employee can access and act on their benefits helps maximize the return on every dollar the organization spends.

6 strategies to strengthen benefits communication

Closing the benefits communication gap does not require a wholesale redesign of existing offerings. In most cases, the benefits are already there. What’s missing is the strategy to make them land. The following actions represent high-impact, near-term opportunities for organizations to strengthen communication effectiveness, drive benefits utilization, and protect the return on their benefits investment:

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How The Baldwin Group helps close the communication gap

Closing the benefits communication gap takes more than updated materials or a new platform. It requires a strategic partner who understands that communication is a core driver of employee engagement, benefits utilization, and return on investment. The Baldwin Group’s advisors work alongside organizations to connect employees to the full value of their benefits, helping employers maximize the impact of every dollar invested.

Make the connection

A benefits program is only as strong as employees’ understanding of it. Organizations that prioritize clear, consistent, and personalized communication are better positioned to drive utilization, support workforce wellbeing, and demonstrate measurable return on their benefits investment. That is the standard The Baldwin Group helps employers reach.

Connect with us to assess your benefits communication strategy and identify opportunities to strengthen it.