Workers are less satisfied with their benefits at the same time they say they are better informed about what their employer offers.

More than 8 in 10 employees feel well informed about company benefits, up from three-quarters in 2024, a recent WTW survey found. However, only 6 in 10 feel satisfied with their benefit offerings, compared to two-thirds in the previous year.

“Employees may better understand their benefits, but that doesn’t mean those benefits are truly serving them,” said Jill Havely, head of global community excellence, employee experience, for WTW. “Forward-thinking total rewards leaders aren’t just tracking usage; they’re listening. They’re uncovering which benefits drive satisfaction and retention, often without increasing spend. Employers need to rethink their investments by using the same budget with a smarter impact.”

Confidence in pay-for-performance alignment is low, with only 41% of employees believing that pay is aligned with rewards. However, two-thirds of employees are satisfied with the non-monetary benefits being offered, an increase from 61% in 2024. “Finding the balance between financial and non-financial rewards positions companies to outperform peers on engagement, retention and results,” Havely said.

These results align with an earlier J.D. Power survey:

  • Satisfaction varies widely across plans and regions. The national average satisfaction score for commercial health plans is 563 (on a 1,000-point scale), but regional scores range from a high of 594 to a low of 523. This indicates meaningful differences in how members experience service, communication and value across the country.
  • Member experience drives loyalty and employer decisions. Two in 10 employers cite low employee satisfaction as a top reason for switching health plans. Plans that invest in better engagement, education and service stand to gain both members and employer clients.
  • Benefit understanding fuels better outcomes. Members who understand their out-of-pocket costs and out-of-network coverage have higher satisfaction and fewer issues such as denials and inaccessible care. Conversely, among members who say they do not completely understand their out-of-network benefits, nearly half had a claim denied, and 56% said their choice of network doctors was not available.
A Nayya study found that many programs are underused and undervalued, despite a nearly $3 trillion investment by employers. Nearly three-quarters of employees stay with the same benefits choices year after year. Even after major life changes, including health diagnoses and salary shifts, employees tend to leave valuable savings and protections on the table. Only 14% of the employees who do make changes to their benefits each year actively seek new benefits options.

“We’re past the point where offering benefits alone is enough,” said Sarah Liebel, president and COO of the company, which uses artificial intelligence to simplify complex benefits experiences. “The system is bloated, broken and confusing by design.”

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