Despite a surge of AI tools for the workplace, research shows that tech investments could be used more effectively to communicate benefits information.
Findings from the State of Employee Financial Wellness Report by Payroll Integrations—a provider of API integrations for payroll systems and benefit providers—show that 73% of employees want more education on company benefits. However, less than half of employers surveyed use technology to improve benefits education, highlighting a gap between its recognized importance and actual implementation.
Vlad Gyster, CEO of Airbo, says this hesitancy is unwarranted. In fact, he says that AI-supported tech can personalize and revitalize employee benefits communications. His company, which specializes in interactive benefits communication, recently conducted a study demonstrating AI’s potential to boost employee benefits education.
“Many expect AI to be dehumanizing, but instead, it can be an angel on the shoulder,” says Gyster.
The pitfalls of poor benefits communication
Employee benefits information often falls into two extremes—either employees overlook it, or it’s critically important to them, says Gyster. This inconsistency makes it difficult for HR teams to provide timely, scalable support.
MetLife’s Employee Benefit Trends Study of thousands of employees in July 2023 revealed a stark contrast between workers who understand their benefits and those who don’t. Among employees who grasp their benefits, 76% report being happy on the job and 82% feel more financially stable. In comparison, among those who don’t understand their benefits, only 47% report happiness and just 52% feel financially stable.
This same MetLife study found that 62% of employees say that knowing how to use their benefits would increase their overall sense of stability, while 50% say that a better understanding of what’s offered and covered would boost their loyalty.
There’s another big reason for HR teams to ensure that benefits are understood: They are an expensive part of the bottom line. Employers spend roughly one-third (30%-32%) of their total employee compensation budget on benefits, according to Bureau of Labor Statistics data from early 2024. Put another way, for every dollar spent on an employee’s total compensation package, about 30-32 cents goes toward benefits rather than direct wages.
AI and employee benefits communication
According to MetLife, employers can better support employees by using multiple communication channels and personalizing benefits messaging. Employees report higher engagement when employers provide user-friendly benefits tools—a factor they ranked more important than having the HR team available to answer questions and having access to expert guidance about benefits.
To evaluate AI’s impact on benefits education, Airbo conducted a study with a large U.S. manufacturer, testing 35 employees on their comprehension of the benefits program. Of these, 19 relied on traditional resources such as benefits guides, portals and call centers, while 16 used an AI-powered tool developed by Airbo.
Each participant answered 13 multiple-choice questions about their company’s benefits. The study was blinded—researchers didn’t know which participants used AI during analysis—and all findings were statistically significant.
The results show a big range in the report card of these test takers:
- Employees using traditional resources scored an average of 69% (D+) on benefits knowledge.
- Employees using Airbo’s AI-powered tool scored an average of 92% (A-), with 44% achieving a perfect score.
- AI-driven benefits education reduced employee frustration by 74% compared to traditional methods.
Don’t overlook source documents
HR professionals often focus on whether AI can accurately interpret benefits documents, but according to Gyster, a more fundamental problem exists: The source documents themselves frequently contain errors and inconsistencies. When HR teams must reconcile these discrepancies, it creates unnecessary delays and additional work.
This reveals that poor document management is an overlooked source of inefficiency. Gyster emphasizes that maintaining accurate, consistent benefits documentation is crucial—without it, both HR staff and employees have difficulty finding reliable information. He says that it’s time to let technology help with this, rather than hoping people will read through disparate sources to understand complex benefit questions: “We’ve had an unreasonable expectation of people for too long.”
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