These aren't theoretical dilemmas but everyday choices, especially as benefit costs continue to rise. Benefits are often presented as independent checkboxes rather than an integrated experience, creating confusion and disengagement. Employees can't prioritize what they don't fully understand. And when decisions feel overwhelming or misinformed, engagement drops.

The cost of fragmentation

According to Payroll Integrations' 2024 Employee Financial Wellness Report, 73% of employees want more education about their benefits, and a quarter say they feel underinformed. This lack of understanding has dire consequences and leads to low participation in programs designed to provide real value, like preventative care, financial planning or voluntary benefits that can help reduce out-of-pocket costs. The downstream effects of skipped preventative care are showing up in increased rates of late-stage disease diagnoses.

For example, two-thirds (65%) of Americans aren't up to date on their cancer screenings. More than two million cancer diagnoses occurred in 2024, the highest ever predicted, as cancer prevention visits lag. It's essential to continue addressing these issues to control costs for employees and employers, save lives and reduce the impact of severe health conditions. This creates added complexity for HR teams: more support tickets, one-off questions during open enrollment and less return on investment for benefits programs meant to boost satisfaction and retention.

Meanwhile, as employers respond to rising claims by layering in more point solutions—like diabetes management, back pain care or fertility support—they face a new challenge: the more solutions they add, the harder it is for employees to find and use them.

Even with thoughtful communication campaigns, getting the right message to the right people at the right time is tough, and general outreach often gets lost in the clutter. Targeting just the subset of employees who could benefit, without overwhelming everyone else, remains nearly impossible.

Related: One key word can drive meaningful engagement with passive enrollment

The solution isn’t more communication, it’s smarter connection

Employees rarely search for these resources on their own. They don’t wonder, “Does my employer have a prediabetes management program?” They don’t think to look because they don’t expect benefits to work that way.

That’s why the platform employees already use to enroll in benefits needs to become a hub that connects the dots. When employees return to manage life events, update coverage or explore benefits, it’s the best opportunity to guide them to what’s available and surface relevant solutions, pointing them toward care, and doing so in a way that preserves trust.

People don’t want to be benefits experts. They want to make the right decision without needing to decode jargon or research plan details. Each simple, helpful experience earns the right to guide them the next time.

What a connected benefits strategy looks like

Bringing clarity to complexity starts with changing how benefits are delivered. Instead of presenting options in silos, employers should create a decision-making ecosystem that surfaces relevant choices based on life stage, claims data, eligibility and individual priorities. Employers should focus on four key themes: rising costs, AI, preventative care and inclusive design to build a more effective strategy.

It begins with recognizing that both employers and employees are navigating unprecedented cost pressures. As expenses climb, new strategies are needed to ensure every dollar delivers value. This means supporting better decisions, not just offering more benefits. Advanced tools are already in existence and help HR teams stay connected with their workforce. These platforms support year-round engagement by surfacing overdue preventive care, underused benefits and timely initiatives. And when paired with AI-powered communication tools, they help HR leaders cut through the noise with personalized, effective outreach, without needing to write every message from scratch.

Employers should also prioritize financial flexibility. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) offer immediate relief while helping employees manage expenses proactively. Expanding benefits packages to include voluntary options such as disability, life and financial wellness programs gives employees additional protection and peace of mind, especially during times of rising costs.

Human-centered AI is the missing link

Artificial intelligence is most effective when paired with human-centered design. It augments the role of HR. Tools like automated eligibility verification reduce manual work while offering intelligent, personalized guidance.

They also support responsible use, ensuring sensitive data is handled with transparency and care, critical as AI capabilities advance. These systems help improve equity, access and inclusion by tailoring communications and benefit recommendations across all employee demographics.

A connected benefits strategy should include:

• Decision support tools that guide employees through choices with personalized recommendations.
• Centralized education platforms that provide year-round access to benefits information and resources.
• Configurable communication tools that automate outreach based on life events, eligibility changes or critical health needs.
• Voluntary and financial benefits that reduce gaps, ease financial strain and promote long-term wellness.
• AI-powered features that simplify enrollment, personalize experiences and generate insights for ongoing improvement.

As employers and employees attempt to settle into the current reality of rising health insurance costs, employers need a solution that will ensure benefits don't just look good on paper but also work in practice, so quality doesn't have to be sacrificed for affordability. That means viewing them not as a list of individual selections but as a network of connected choices. When employees see how everything fits together, they can make better decisions. And when they make better decisions, everyone wins.

Eddie Pinto, SVP of Product at PlanSource