How leaders can help maximise workplace benefits for employees

A recent article from HR Review revealed a surprising statistic: 80% of employees fail to fully utilise their workplace benefits . Despite companies offering a range of perks and programs—from health insurance to professional development opportunities—many employees are not taking full advantage of these valuable resources. This presents a significant challenge for leaders in large organisations, as the underutilisation of benefits can directly impact employee satisfaction, engagement, and retention.

Why Are Benefits Underutilised?

One of the primary reasons employees fail to use workplace benefits is a lack of awareness. Many workers are simply not informed about the full range of options available to them or are unsure of how to access or apply these benefits. Complex systems and unclear communication can create barriers that prevent employees from fully exploring what’s on offer. Additionally, some benefits, while well-intentioned, may not align with employees’ needs or expectations, making them less appealing.

The Role of Leaders in Maximising Benefit Utilisation

Leaders play a critical role in ensuring that employees are not only aware of the benefits available but also feel encouraged and empowered to use them. Here’s how leaders can help:

Clear Communication: Leaders should prioritise transparent and accessible communication about available benefits. This includes regular reminders during team meetings, emails, and even dedicated Q&A sessions where employees can ask questions about their options. Making sure that employees understand the long-term value of these benefits, such as retirement savings plans or wellness programs, can increase their usage.

Tailoring Benefits to Employee Needs: Employees are more likely to use benefits if they feel those benefits align with their personal and professional needs. Leaders should regularly assess whether the organisation’s offerings are relevant and engaging. By seeking feedback from employees through surveys or one-on-one discussions, leaders can work with HR to adjust the benefits package to better serve the workforce.

Creating a Supportive Culture: Leaders set the tone for how benefits are perceived within the organisation. By openly discussing their own experiences with workplace perks—whether it’s taking time off for mental health, using professional development resources, or leveraging flexible working policies—leaders can normalise and encourage the use of benefits.

Providing Training and Resources: For benefits that require additional steps or understanding (like setting up a retirement account or navigating health insurance options), leaders can ensure that training sessions or resources are made available. Educational workshops, tutorials, or even partnering with external providers to offer consultations can help demystify complex benefits.

The Impact of Underutilisation on Engagement and Retention

When employees are unaware of or feel disconnected from their benefits, it can lead to dissatisfaction. Studies show that well-communicated and utilised benefits programs can lead to higher employee engagement, improved well-being, and increased loyalty to the company. Leaders who take the initiative to promote benefits can therefore play a pivotal role in reducing turnover and improving job satisfaction.

Moving Forward: The Future of Employee Benefits

As workplace benefits continue to evolve, particularly in response to changing work environments and employee needs, leaders must remain proactive in ensuring that their teams are well-informed and supported. Offering a wide range of benefits is no longer enough—leaders must actively foster a culture where employees feel empowered to take full advantage of them.

By focusing on communication, alignment with employee needs, and ongoing support, leaders can ensure that their workforce not only understands but also maximises the value of the benefits offered.

For more insights on the underutilisation of workplace benefits, check out the full article on HR Review here.