How to build an employee benefits strategy that drives real usage

With healthcare costs rising and HR teams increasingly stretched thin, it’s more important than ever to build benefits packages that employees will actually use. As open enrollment season brings record-level pressure, many employers are navigating their most difficult renewals in over a decade, driven by escalating costs across both medical and ancillary plans.

Benefits account for roughly 31% of American employers’ total compensation budget, making it critical for HR leaders to not only manage costs, but also ensure employees are actively engaging with and gaining value from the benefits offered. In a recent conversation, Nava Benefits CEO Brandon Weber and Cara Brennan Allamano, Advisor and former Chief People Officer at Lattice, explored how to meet modern employee expectations, reduce administrative burdens, and rethink ROI, without sacrificing impact.

Today’s workforce has higher expectations

Over the last several years, employee expectations around benefits have evolved dramatically. Factors such as mental health parity, increased caregiving responsibilities, and heightened health awareness during the pandemic have elevated benefits like:

• Mental health services
• Fertility support
• Family care

These offerings have moved from “nice to have” to must-haves in a competitive benefits strategy.

The rise of remote work and digital fluency has also changed how employees engage with their benefits. People now expect their experience to mirror the consumer-grade tools they use every day—simple, immediate, and personalized. If your benefits feel like “PDFs and hurry-up-and-wait,” you’re falling behind.

How to use technology to empower employees and support lean HR teams

With limited bandwidth and increasing demands, HR teams are under more pressure than ever—88% of HR leaders report burnout, according to Lattice’s People Strategy Report. Technology can be a critical lever, not just for scaling administrative efficiency, but also for delivering a better experience to employees.

Modern tools automate time-consuming tasks like carrier bill audits, EDI feed management, and high-touch inquiries—freeing up HR teams to focus on strategic initiatives.

At the same time, technology empowers employees with real-time, personalized guidance—enabling faster answers, fewer missteps, and easier access to the benefits they need, when they need them.

• AI-powered benefits assistants can answer employee questions 24/7, eliminating long wait times and reducing the burden on HR.
• Decision-support platforms embedded in the enrollment experience help employees compare plans based on real usage scenarios, guiding them toward smarter, more cost-effective choices.
• Mobile benefits hubs or self-service portals offer on-demand access to ID cards, provider directories, and claim information—no emails or phone calls required.

The result? Less friction for HR, more confidence for employees, and stronger engagement with your overall benefits strategy.

How transparency and framing improve employee engagement

Effective communication is essential for increasing benefits utilization and managing change.

Instead of rolling out new offerings and hoping for the best, consider this three-part framework:

1. Frame every new benefit as an experiment

Set expectations early. Define what success looks like—often based on usage thresholds (e.g., 15–30% engagement).

2. Track and share performance

Use quarterly usage data to inform decisions and prepare for renewal season.

3. Reinforce key messages year-round

Don’t wait for open enrollment. Remind employees of available benefits throughout the year, especially those that are underutilized.

By explaining these benchmarks and intentions upfront, HR teams reduce surprises and create room for iteration and improvement.

Tailor benefits communication to employees’ needs and mindsets

A modern benefits strategy requires omnichannel communication. Offer support across various touchpoints to ensure access is inclusive and frictionless:

• Text support for non-smartphone users
• Email or in-person office hours during enrollment
• Push notifications and reminders (e.g., “Here’s how to spend your leftover FSA funds before Jan 1”)
• Short-form videos that explain complex topics in under 60 seconds

The goal is to reduce friction, boost awareness, and let employees get support in the way that works best for them.

Empower employees to make confident, informed enrollment decisions

Most employees choose suboptimal plans during open enrollment, often over-insuring out of caution. One study showed that 62% of employees make suboptimal medical plan choices, leading to an average of 42% overspending.

Embedding decision support tools into the enrollment process helps employees:

• Compare plan costs based on real usage
• Understand what’s covered
• Make informed choices that align with their needs

Better decisions = smarter spending = a better experience for everyone.

Redefining ROI: from cost control to employee trust

Benefits are more than just a budget item—they’re a reflection of how a company supports its people. A well-designed experience reinforces trust, boosts satisfaction, and enhances performance.

When employees struggle to navigate their benefits or receive unexpected bills, it erodes trust, and that frustration often falls on HR, not the carrier. But when employees feel cared for and confident in their options, they’re more engaged and empowered to do their best work.

ROI isn’t just about dollars saved, it’s about confidence earned.

Final thoughts

Delivering benefits that employees actually use requires more than tradition, it demands modernization, empathy, and actionable data. With the right tools and strategies, HR leaders can:

• Reclaim time
• Communicate clearly
• Ensure every dollar in benefits spend delivers impact

This is the moment to raise expectations, not just for employees, but for the partners and platforms that power your benefits. A thoughtful, tech-enabled strategy can turn your benefits from a passive offering into a powerful driver of engagement, retention, and wellbeing.

Watch the full session on crafting benefits packages below, and register for our upcoming webinars here.

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