In particular, employees want to receive benefits information more frequently. Roughly half of workers say their companies only communicate about benefits during the open enrollment period, but 69% would prefer to receive benefits information at least a few times or frequently throughout the year. Gen Z employees are the least satisfied with their employers' current communication efforts and the most likely to want ongoing benefits communication throughout the year, probably because these younger workers have less experience with benefits and need more information.

Frequency of benefit communication

Based on employees who are offered insurance benefits and have had an open enrollment within the past two years.

Beyond meeting employee demand, ongoing benefits communication provides significant value to companies by improving employee understanding of their benefits. For example, only 37% of employees feel they understand hospital indemnity insurance well if they only receive information during open enrollment, but this rises to 65% when they receive benefits communications frequently throughout the year. Improving employee understanding can increase benefits participation rates since employees who have a good working knowledge of any given benefit are more likely to enroll. In addition, improved understanding helps workers appreciate the full value of the benefits packages their employers offer, and can lead to a better experience for employees, since those who understand their benefits will be able to use them more effectively.

Employees who receive better and more frequent benefits communications are also more satisfied with their overall benefits packages, probably because they recognize the value of what their employers are providing. When employees receive information only during open enrollment, 46% are highly satisfied with their benefits, compared with 71% who are highly satisfied when they receive benefits communications throughout the year.

Improving benefits satisfaction is critical because it contributes to employee retention. Overall, 43% of employees say their benefits packages make them considerably more inclined to stay with their current employers, but this increases to 81% among those who are highly satisfied with their benefits. In addition, benefits satisfaction contributes to overall job satisfaction. Employees who are highly satisfied with their benefits are substantially happier with their jobs. They are also much more likely to plan to stay with their current employer over the long-term.

While employers may be concerned about the additional time and resources needed to improve benefits communication and continue it throughout the year, brokers, carriers, and benefits administration providers can help by supplying materials, support, and communication strategies. These efforts are likely to pay off in the form of improved employee understanding of benefits, more satisfied workers, and increased retention.

Kimberly Landry is Associate Research Director, Workplace Benefits Research at LIMRA.