Organizations deploy multiple communication channels to explain employee benefits, yet barely half of HR professionals rate their efforts as effective, revealing a fundamental breakdown in how benefits information reaches and resonates with workers.
The survey of 189 HR professionals, conducted by HR News Canada in partnership with Venngo, shows organizations use onboarding sessions (62%), information from benefits providers (52%), company intranets (49%), and employee newsletters or emails (49%) to communicate benefits. Despite this multi-channel approach, only 10% call their communication very effective, while 42% rate it somewhat effective and 28% say it’s neutral.
“Organizations often share too much information all at once and fail to tailor messaging to life stage or preferences,” said Sally Benn, senior vice-president of group customers at Venngo, whose company sees firsthand how employees engage with perks offerings as part of Total Reward packages. “Communication of benefits needs to be fully integrated and frequent with accessible formats to ensure all employees have the information they need, when they need it.”
The comprehension gap
The problem extends beyond channel selection to whether employees actually absorb the information provided. Studies suggest engagement with annual benefits updates can be as low as 30% to 40%, according to Benn.
Employers often measure distribution metrics like email opens or intranet clicks rather than comprehension, assuming awareness without confirming understanding. Quick surveys or online polls can gauge employee understanding on an ongoing basis, Benn said.
The survey reveals varying levels of workforce engagement with benefits overall. While 30% of respondents report that more than 75% of their employees actively engage with and use their benefits, another 36% say only 51% to 75% do so. At the lower end, 25% of organizations report that just 26% to 50% of employees engage, and 6% say fewer than 25% of their workforce uses benefits actively.
These utilization rates suggest many employees aren’t fully connecting with available benefits—potentially because they don’t understand them.
What employees actually value
When asked to list the top three benefits employees value most, survey respondents cited extended health coverage, mental health services, and RRSP matching most frequently. These traditional, predictable benefits topped the list across organizations.
But the pattern raises a question: are these genuinely what matters most, or do employees simply not understand what else is available?
“The top three from the survey are highly valued benefits based on what the research shows around the importance of wellbeing—financial, physical, and mental,” Benn said. “However, benefits like eldercare may have lower overall reported value because it is directed toward a specific demographic.”
Effective and highly valued benefits programs provide flexibility and choice to meet employees’ diverse needs, life stages and lifestyle preferences, according to Benn. But for that to work, messages must be clear, tailored and timely so benefits are well understood and highly valued.
The survey shows significant room for improvement in satisfaction. When asked about their benefits program’s comprehensiveness, only 6% reported being very satisfied, 43% said satisfied, and 33% remained neutral. Another 14% indicated dissatisfaction and 4% said very dissatisfied.
Building understanding and appreciation
To increase awareness and understanding, organizations need to shift their approach fundamentally.
“Employees need to know what they have in order to value it,” Benn said. “Communications on what employees receive in exchange for their efforts as part of their overall Total Rewards package should be ongoing throughout the year with consistent messaging and branding.”
The survey reveals organizations communicate through various methods beyond digital channels. Among respondents, 47% use employee handbooks, 34% provide printed materials, and 16% use Teams, Slack or other collaboration tools. However, 7% noted they do a poor job of communicating benefits or don’t communicate them at all.
“Start with understanding your employee base and learn how they like to receive communications,” Benn said. “Use plain language, short videos, and interactive tools to make it interesting and engaging. Deliver information in all possible communication channels, so employees can access what matters most to them where and when they need it.”
Timely and targeted communication helps reinforce what employees have and when and how to use it, building understanding and appreciation. For example, communicating throughout the year on how wellness accounts offer flexibility and choice to support financial, social, mental and physical wellbeing based on what matters to individual employees.
Communication approaches need to continuously evolve as programs and technology evolve, moving away from pull communications and generic messaging toward push communications and personalized messaging, Benn said.
Technology’s evolving role
As AI and technology advancements continue to evolve and become embedded in employee programs, benefits communication should improve, according to Benn.
Despite strong communication efforts, some employees may still choose not to engage with or learn about their benefits. But organizations can’t know whether low engagement stems from employee choice or communication failure without measuring comprehension rather than just distribution.
The survey shows 45% of organizations review and update benefit offerings annually, while 34% do so every two to three years and 10% every four to five years. Another 5% never review benefits, and 6% review on other timelines. Without effective communication accompanying these updates, even the best changes may go unnoticed or unappreciated.
The competitive impact
Poor benefits communication affects more than just utilization rates—it impacts retention and recruitment. The survey found 68% of organizations rate flexible, personalized benefits as important or extremely important for employee satisfaction and retention efforts.
But if employees don’t know or understand the benefits available to them, those benefits can’t deliver their intended value. Organizations investing in comprehensive benefits packages without meaningful investment in communication may be wasting resources on programs employees don’t realize they have.
Looking ahead, organizations face increasing pressure to communicate effectively across diverse workforces. Survey respondents came from companies ranging from fewer than 50 employees (24%) to more than 5,000 employees (7%), across industries including professional services (16%), manufacturing (14%), educational services (10%) and health care (6%).
Each organization faces unique communication challenges based on workforce composition, but the core principle remains the same: benefits only create value when employees understand and use them.
“This will change as AI and technology advancements continue to evolve and become embedded in employee programs,” Benn said. “Despite strong communication efforts, some employees may still choose not to engage with or learn about their benefits.”
The message for HR leaders is clear: deploying multiple communication channels isn’t enough. Organizations must shift from broadcasting information to ensuring comprehension, from generic messaging to personalized communication, and from annual updates to ongoing reinforcement. Only then can benefits deliver the engagement, retention and satisfaction organizations expect from their investment.
Get a copy of the full report
Access the full survey results for free here: https://hrnewscanada.com/perkshift/
