6 Methods of Improving Benefits Utilization Rates

It’s always disappointing when employees ignore your benefits program, especially when you’ve invested time in creating an attractive package. But worse, this lack of engagement can lead to wasted spend and a missed opportunity to support your workers in meaningful ways. 

The good news? You can use six simple strategies to boost participation and make your benefits work harder for your people and your business. 

How to improve employee benefits utilization rates

Your benefits are only valuable if your employees participate in your program. For that to happen, they need to know what’s available, feel excited about using them, and understand how to access the support whenever they need it.  

Below, we offer six practical ways to help your people get the most out of their benefits. Start by benchmarking your current benefits utilization, apply a few of these strategies, and then re-measure to see what’s working. Over time, these small shifts can drive employee engagement and stronger return on investment.

1. Use your internal marketing expertise 

Your marketing department already knows how to capture attention and create excitement, so why not tap into their skills to boost your internal benefits campaigns? Use a variety of different channels to convey your message effectively: 

• Email campaigns and internal comms tools: Drip-feed messages throughout the year to highlight specific benefits, upcoming enrollment deadlines, or tips. 
• Intranet posts or blogs: Spotlight engaging updates on new or underused benefits with short, conversational articles. 
• Employee testimonials: Share authentic stories, quotes, or mini-interviews from colleagues who’ve benefited personally. 
• Short videos: Interview employees or HR team members to casually discuss favorite benefits and show their real-world impact. 
• Company town halls or team meetings: Invite employees who’ve experienced real value from benefits to speak. 
• Posters or digital screens in common areas: Place friendly visual reminders in strategic areas of your workplace, such as break rooms and lobbies. 

2. Overcommunicate your benefits offering 

Don’t limit your benefits communication to open enrollment or annual announcements. Employees are already inundated with information during these times and might overlook crucial details. Instead, make your benefits education a consistent, year-round priority.

Your team will need more than a simple one-sheet handout. Instead, educate employees properly by hosting regular classes, workshops, or casual Q&A sessions led by HR or benefits specialists. Providing a safe space for employees to ask questions (including anonymously since health and personal finance topics can feel sensitive) ensures they’ll truly understand what’s available.

TC Riley, Senior Director of Data, Analytics & Research at Cariloop, explains it clearly in the Maximizing Employee Benefits Utilization podcast episode: 

“‘Build it, and they will come’ is not how benefits work. Comprehensive and consistent education is a driver of benefits. When that is at the forefront of focus, it reflects back to utilization and the maximum value provided through these benefits.”

3. Lead by example 

Employees often look to their managers for cues about what’s really valued in the workplace. If managers don’t talk openly about using their own benefits, employees might hesitate to take advantage of things like unlimited leave or flexible work hours, thinking they’re not encouraged or worthwhile. 

Coach your managers to be open about how and why they use their benefits. For example, if a manager uses their Headspace account or mental health services, encourage them to briefly mention this during a team meeting or casually in conversation. If another uses lifestyle spending accounts to support their hobbies or personal development, have them share their positive experiences with their team. 

4. Make your benefits accessible 

Your benefits might be fantastic, but if employees need a map and compass to find them, they’re probably going unused. People have limited patience, especially when they’re busy or stressed. If your benefits are buried behind complicated logins, many won’t even bother.

Steven Cardwell, VP of Benefits, Well-Being, and Retirement at Premise Health, puts it plainly:

“If I’ve got all these great benefits, but they’re scattered throughout, and I have to go to different portals or different websites, or if I have to find it on the intranet site under a different tab, my chances of being engaged in those programs are drastically reduced. It gets to a point where if I have to go 2-3 clicks to find something, and I’m limited to an intranet site or a hard copy guide that was given to me at annual enrollment time, you’ve already lost me.”

Make life easier for your employees by using modern tech to centralize your benefits into one straightforward platform, ideally accessible from their phones. When you remove the hassle, more people will dive in and want to know more. 

5. Prioritize flexibility 

Your people are more likely to utilize benefits that align with their individual lives and needs. The old-school, one-size-fits-all approach doesn’t cut it anymore—your team is diverse, and they need benefits to reflect that.

Shannon Olson, Human Resources Supervisor at Goodheart-Willcox, explains how gathering employee feedback helped her team build a more personalized program: 

“We did a benefit survey to find out if there were areas or topics that employees felt they did not have a lot of information on or that they were struggling in. That led to us implementing a holistic program that focuses on physical, career, social, and mental well-being.”

But it’s not just about offering different types of benefits. Employees also gravitate toward programs with clear financial impacts, especially when economic pressures are high. TC Riley highlights this point:

“The dollar drives decisions. Inflation is a hot topic, and employees are reflecting that this is true to them as well. Things that have a direct, clear financial benefit to the employee, we’re seeing trend up in utilization.”

When benefits are flexible and tailored to real employee needs, employers can expect significantly higher participation rates. Lifestyle spending accounts (LSAs) are a great way to provide this level of personalization. Employees can use their LSA allowance for expenses they genuinely care about, whether fitness, hobbies, ongoing education, or mental health benefits, making the program relevant to every individual. 

6. Incentivize benefits adoption 

If you’re looking for another strategy to boost benefits utilization, consider rewarding participation itself. Small, creative incentives can drive big changes in behavior.

For example, you could introduce gamification into your benefits program by creating team challenges, friendly competitions, or milestone-based rewards. Think gift cards, company swag, or extra time off for employees who participate actively or hit specific engagement goals. Even modest rewards can engage employees to dive deeper into the benefits available to them.

How benefits utilization achieves a better ROI

Maximizing employee participation in benefits programs is a strategic move that can lead to significant financial advantages for your organization. Here’s how increased benefits utilization can improve your return on investment:

• Optimized compensation spending: According to the U.S. Bureau of Labor Statistics, benefits account for nearly 30% of total compensation costs for private industry workers, averaging $13.20 per hour worked. When employees fully utilize these benefits, you extract the most value from every compensation dollar you spend.​
• Controlled healthcare expenses: Mercer indicates that U.S. employers expect a 5.8% rise in total health benefit costs per employee in 2025. Encouraging employees to engage in preventive care and wellness programs can mitigate these rising costs by promoting overall health and reducing the need for expensive medical interventions.​ 
• Increased productivity and reduced absenteeism: Employees who take advantage of health and wellness benefits are also generally healthier, leading to fewer sick days and higher productivity levels.​ 
• Improved financial predictability: High benefits utilization leads to more predictable expenditures, allowing for better budgeting and financial planning, so there are fewer surprises. 

Offer modern, flexible benefits with Benepass

Benepass is a people-first platform designed to consolidate pre- and post-benefits into one intuitive solution, so employers and employees build personalized, robust benefits packages that are valuable to them. 

The result? Higher utilization, happier employees, and an exceptional return on your benefits investment. 

Ready to create a benefits program your employees will love? Book a demo of Benepass today, or reach out directly to a benefits specialist at sales@getbenepass.com.