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Closing the Gap: Low Workers’ Benefits Awareness Hinders Enrollment

Grand benefits and generous support systems only work when employees know how to utilize them. Worker benefits awareness appears to be on the lower side, according to a new survey, with only 43% of them cognizant of how to apply for them. While there are a large number of employees who dive into each benefit in detail and use them well, less than half know the procedures and benefits well enough to enroll for them. 

Not only does this limit the number of benefits they are able to access, but the employer also misses out on the added engagement that these benefits promise. In 2025, it might be time to start educating employees on the benefits available to them more thoroughly, ensuring a human touch in the process.

workers benefits awareness

Workers’ benefit awareness remains lower, as only 43% of them understand how to enroll in the employer-sponsored benefits available to them. (Image: Pexels)

Workers’ Benefits Awareness Remains Low: Let’s Tell Them What’s On the Menu

Recent surveys conducted by the New York Life Group Benefit Solutions found that only 43% of workers know how to enroll in the employer-sponsored benefits available. This leaves a remarkably large number of workers who are unaware of how to go about the process of signing up. The study also found that 32% of workers felt they were extremely in tune with the benefits they needed and with the terms and conditions of these benefits. 

The percentage of confident employees shows us that there are many workers who are in the loop about the benefits that can vastly improve their quality of life. However, considering that the list of benefits is typically expected to be common knowledge among employees, the number is startlingly low. 

Does It Matter If Workers Don’t Know About the Benefits Available to Them?

This low workers’ benefits awareness may not appear to be much of an issue at first, but employers go through considerable work to provide workers with these employer-sponsored benefits, and ensure they receive some retention and productivity returns through them. Low adoption numbers can make it a failed investment, especially when employees are left feeling unappreciated by the organization. 

Employees don’t exclusively select an employer based on the pay offered. There are a long list of overlapping factors like work culture, flexibility, career support systems, childcare assistance, retirement support, and other aspects that factor into the decision to connect with an organization. Without the knowledge of benefits enrollment procedures, workers often take on unnecessary burdens that may just have been resolved with the help of the very benefits that are available. 

What Benefits Are Employees Looking For?

The New York Life Group Benefit Solutions study also took a look at the benefits that employees prioritized most, and the list is unsurprising. Employer-matched 401(k) or savings plans, flexible working conditions, health and additional disability insurance, and mental health support are just a few of the benefits that took center stage. 

Employees also expressed a desire for financial education support, which is critical at a time when there is much uncertainty about the best way to put their money to good use. From the list, it is apparent that receiving these critical employee benefits could be life-altering for workers. The respondents also expressed a preference for understanding these benefits primarily through human support, rather than relying on technological channels exclusively. 

Within a workforce, those who know how to enroll in these programs are bound to be more committed to maintaining their jobs at the company than those who feel unsupported by their organization. Happy and supported employees are cornerstones of a successful business, and the provision of useful benefits is an easy way to earn their support in return. 

How to Get Started with Educating Employees on Benefits?

When workers don’t know the benefits, they don’t use the benefits. This makes it the HR team’s job to help employees understand the support systems that employers have made available for them. 

This awareness campaign isn’t just a one-time duty either. Employees who join an organization aren’t immediately eligible for all the benefits, making it harder for them to track what advantages are available to them. Many are also hesitant to ask for fear of being perceived as unaware or greedy, and as a result, the conversation never comes up. 

How to Increase Workers’ Awareness of the Benefits
  • Provide a thorough introduction to the benefits offered at the organization during onboarding
  • Assign specific HR employees who can be contacted for more details on the benefits or the enrollment process
  • Simplify the terms and conditions of the benefits so employees aren’t intimidated away from them
  • Update employees when they become eligible for a particular benefit 
  • Send out periodical reminders about the programs available to them and encourage them to sign up 
  • Conduct open enrollment drives across the organization where workers can show up to understand what’s on offer and how they can participate
  • Collect feedback on workers’ benefits awareness periodically to get a better sense of how many are using the benefits, how it is helping them, and why those who haven’t signed up are hesitating

Spreading the knowledge of benefits enrollment may seem like an unnecessary measure, but it is much better to help employees than allow for a culture where they are hesitant to ask questions and understand what’s on offer. Supportive businesses never go out of style, and while providing benefits is a great start, ensuring they are utilized shows an organization’s willingness to go the extra mile.

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Anuradha Mukherjee
Anuradha Mukherjee is a writer for The HR Digest. With a background in psychology and experience working with people and purpose, she enjoys sharing her insights into the many ways the world is evolving today. Whether starting a dialogue on technology or the technicalities of work culture, she hopes to contribute to each discussion with a patient pause and an ear listening for signs of global change.

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