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How Better Benefits Communication Improves Employee Engagement and Utilization | MSA

Written by MSA Staff | Jun 2, 2026 2:00:00 PM

Key Takeaways

  • Many employees don't fully understand the benefits available to them.
  • Low utilization of benefits can reduce the value of an employer's benefits investment.
  • Financial education and coaching can improve awareness and engagement.
  • Employees increasingly want help understanding retirement, healthcare, and financial benefits.
  • Employers, EAPs, and PEOs can improve utilization through year-round communication, education, and support.

 

Employee Benefits Communication Is a Financial Well-being Issue

Employers invest significant resources in employee benefits, but those benefits only create value when employees understand and use them.

Whether it's a retirement plan, HSA, FSA, EAP service, or voluntary benefit, awareness and education often determine utilization.

When employees understand how benefits fit into their overall financial situation, they may be more likely to engage with available resources and make informed choices.

Employee benefits communication is ultimately a Financial Well-being issue. Employees can't take advantage of resources they don't fully understand.

 

Why Employees Aren't Fully Utilizing Their Benefits

When equipped with an employer's benefit offering, MSA can help increase employees' use of existing benefits through education and personalized Money Coaching. By increasing awareness and understanding of available resources, employers can help employees make more informed benefit decisions and improve engagement with existing programs.

By increasing awareness and understanding of what's available, employers can address common challenges such as:

  • Low 401(k) participation
  • Underutilized HSAs
  • Employee confusion during open enrollment
  • Poor understanding of retirement benefits
  • Low awareness of voluntary benefits

When employees better understand their benefits and how they apply to their personal situation, they are often more likely to engage.

 

Employees Need Help, and They're Asking for It

Employees are speaking clearly. They want help navigating their finances, making informed benefit choices, and building confidence in their financial future.

Here's what employees shared during an MSA Insights live event:

  • 62% are very likely to use a Money Coach to help choose benefits, even if they already feel confident.²
  • 71% lose sleep over their finances, and 72% lose sleep over their health, often both.²
  • 47% are unsure whether they're on track for retirement despite saving consistently.²
  • 34% identified investing and growing wealth as their top financial priority, followed by retirement (21%) and debt payoff (19%).²
  • 12% don't know where to focus financially.²
  • 94% of late-career participants didn't know when they hoped to retire.²

Another MSA survey found that 53.41% of employees want help understanding Traditional vs. Roth retirement accounts, Health Savings Accounts, and Flexible Spending Accounts.³

External research reinforces these findings. According to ADP's 2024 Employee Benefits Survey, 60% of employees rank retirement savings plans among their three most important benefits, a 9% increase from the previous year.⁴

Research also shows employees want more communication and education. In a 2024 Employee Benefit News survey, 64% of employees said they want more proactive communication and education around their financial benefits.⁵

Employees are asking for help. The opportunity for HR leaders is to make that help easier for their workforce to access.

How Employers Can Help Employees Make Better Benefits Decisions

 

Looking for ways to improve employee benefits engagement across your workforce?

 

Learn how educational guidance and personalized Money Coaching can help employees better understand and utilize available benefits.

 

Learn More About MSA

 

Improve Retirement Plan Participation

Employers often invest heavily in retirement benefits, but participation and engagement may remain lower than desired.

One approach is combining retirement plan education with Financial Well-being coaching.

An MSA Money Coach can work alongside a retirement plan advisor to deliver employee education focused on:

  • Plan overviews
  • Employer matching policies
  • Investment options
  • Retirement planning resources
  • Obstacles that may prevent employees from investing in their future

Money Coaches can also help employees understand available retirement calculators, educational tools, and support resources.

Employers may also benefit from offering workshops focused on budgeting and goal-setting, helping employees identify ways to increase their retirement contributions over time.

On average, MSA members increase their retirement contribution, in addition to existing contributions from annual salary increases, by more than 4%.¹

Employee Retirement Planning: Why Saving Alone May Not Be Enough

 

Support Employees Through Retirement Plan Changes

Retirement plan changes can create confusion and uncertainty.

Whether an organization is updating a pension plan, modifying a 401(k) offering, or introducing new retirement resources, employees often need help understanding what changes mean for them.

Educational sessions can help employees understand:

  • Plan updates
  • Available resources
  • Retirement planning considerations
  • The role of retirement advisors, Money Coaches, and other professionals

MSA complements retirement advisors and benefits providers by helping employees address the day-to-day financial challenges that may prevent them from taking full advantage of available retirement benefits.

By improving financial habits, building confidence, and helping employees manage competing priorities, coaching may help employees become more prepared to engage with retirement planning resources.

 

"[My Money Coach] has saved me hours of research by recommending collaboration with my CPA and financial advisor. She has been extremely helpful in my final stages of retirement planning. Gold Standard performance!!"

 

— MSA Member

 

Increase HSA and FSA Engagement

HSAs and FSAs can offer meaningful financial advantages, yet many employees don't fully understand how they work or whether they are eligible.

Money Coaches can help employees understand:

  • HSA-eligible health plans
  • Tax advantages
  • Contribution considerations
  • How HSAs and FSAs fit into an overall financial strategy

This education can be particularly valuable because many employees spend little time evaluating healthcare options and often default to the same plans year after year rather than exploring alternatives that may better fit their needs.

How Employers Can Improve HSA Education and Participation

 

Help Employees Navigate Workplace Changes

Changes such as updated pay schedules, payroll processes, or benefit offerings can affect household budgets and financial routines.

Educational sessions and coaching can help employees:

  • Understand upcoming changes
  • Prepare for budget adjustments
  • Ask questions in a supportive environment
  • Build confidence during transitions

Employees often benefit from having a trusted resource available before, during, and after major workplace changes.

 

Benefits Communication Doesn't End at Open Enrollment

Many organizations focus their communication efforts during open enrollment, but employees make financial and benefits decisions throughout the year.

Questions about retirement plans, healthcare costs, HSAs, FSAs, voluntary benefits, and life events often arise months after enrollment ends.

Ongoing benefits communication, educational resources, and access to personalized support can help employees better understand available resources when they need them most.

Employers that provide year-round benefits education may be better positioned to improve engagement, increase utilization, and help employees make more informed decisions.

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Why Benefits Education Matters

Benefits create value when employees understand and use them.

  • Education increases awareness.
  • Awareness increases engagement.
  • Engagement increases utilization.

Organizations that provide year-round educational opportunities may be better positioned to maximize the value of their benefits investments while helping employees make informed financial decisions.

 

Frequently Asked Questions

What is employee benefits utilization?

Employee benefits utilization refers to the extent to which employees understand, access, and use the benefits available to them.

Why don't employees use all of their benefits?

Many employees are unaware of available resources, don't fully understand how benefits work, or feel overwhelmed by complex decisions.

How can employers improve employee benefits engagement?

Employers can improve engagement through education, communication, financial coaching, and year-round awareness campaigns.

What role does financial coaching play in benefits utilization?

Financial coaching can help employees understand benefits, evaluate options, and connect available resources to their personal financial goals.

How do EAPs and Financial Well-being Programs support benefits utilization?

EAPs and Financial Well-being Programs can provide educational guidance, coaching, and resource referrals that help employees better understand and utilize available benefits.

 

Next Steps for Employers, EAPs, and PEOs

  • Review utilization trends across your benefits programs.
  • Identify areas where employee education may be lacking.
  • Evaluate opportunities to provide coaching and educational resources.
  • Incorporate benefits education throughout the year.
  • Measure engagement and adjust communications accordingly.

 

Help Employees Get More Value From Their Benefits

Employees often want help understanding their benefits, retirement plans, healthcare options, and financial resources.

When employers provide education, coaching, and ongoing communication, employees may be better positioned to engage with available benefits and make informed financial decisions.

Learn how MSA helps employers, EAPs, and PEOs increase benefits utilization through educational guidance, personalized Money Coaching, and Financial Well-being initiatives.

 

¹ My Secure Advantage, Inc., January 2025. Based on self-reported data from MSA members working with a coach on this specific issue, from 1/1/23–12/31/24.

² My Secure Advantage, Inc. August 2025. Based on MSA member self-reported live event data. 1,230 responses.

³ My Secure Advantage, Inc. February 2024. Based on MSA member self-reported live event data. 3,054 responses.

⁴ ADP Editorial Team. Employee Benefits Survey. ADP, December 18, 2024.

⁵ Cuadra, Deanna. "Did Americans Contribute Enough to Their Retirement in 2024?" Employee Benefit News, December 23, 2024.