Summary

Why do employees often underutilize workplace benefits despite employer investments in benefits programs? Research from the Employee Benefit Research Institute (EBRI) finds that a key challenge is the gap between benefit availability and employee awareness. Many employers and benefits brokers invest heavily in communication strategies designed to increase participation, engagement, and understanding, yet employees frequently report lower awareness of available benefits and less confidence in their understanding of them.

The research identifies a persistent disconnect between what employers report offering and what employees believe is available to them, particularly for voluntary and supplemental health benefits. Employees are often less familiar with products such as accident insurance, critical illness insurance, hospital indemnity insurance, and other supplemental health coverage options, limiting the potential value these benefits can provide.

The findings suggest that improving benefits education, employee communications, and benefit awareness may help close enrollment and engagement gaps. Clear, targeted communication can play an important role in helping workers better understand available coverage, make informed enrollment decisions, and maximize the value of employer-sponsored benefits.