Why Onboarding Matters: Integrating Employee Benefits from Day One

When employees begin a new job, the excitement often comes with an overwhelming array of information. New responsibilities, policies, and procedures flood their first few days. Unfortunately, a crucial component of this information flow—understanding their employee benefits package—often gets lost in the shuffle. Worse, failing to clearly communicate employee benefits early in the onboarding process can have manifold negative consequences, including lower employee satisfaction, reduced productivity, and increased turnover rates.

And research shows that benefits communication is an area of challenge for employers: nearly two-thirds (62%) of employees say they are “unconfident” when selecting benefits, which suggests inadequate support and access to information during that process. Even among HR leaders themselves, only 14% express confidence in the benefits selection process. Incorporating at least some kind of employee benefits guide or other support during onboarding can make a significant difference.

The Importance of Benefits Package Education Starting During Onboarding

1: Immediate Understanding of Total Compensation

Onboarding is prime time for correcting issues related to understanding benefits. By incorporating benefits education into the onboarding process, 85% of employees will go on to make full use of their benefits.

However, without a proper explanation early on, many employees might not fully grasp—or appreciate—how their benefits figure into their total compensation. By communicating the details of benefits right from the start, the employee’s perception of the company and their work can improve. “Effective benefits communication and engagement efforts can boost returns on benefit investments; at minimum, all employees should understand what’s available to them and how to sign up,” writes MetLife in its 21st annual U.S. Employee Benefit Trends Study (EBTS). 

2: Improved Employee Satisfaction and Retention

Understanding and utilizing benefits effectively is closely linked to employee satisfaction and intent to stay. According to a separate MetLife study, when employees understand how their benefits work, they are 100% more likely to trust their employer’s leadership, 78% more likely to be happy with their role, and 50% more likely to be loyal to their employer.

The reverse is true as well, unfortunately. Pew Research has found that, of those who quit their jobs, nearly half (43%) do so specifically due to dissatisfaction with their benefits. Here, it’s worth asking: is it dissatisfaction with their actual benefits, or did they just fail to understand the benefits available to them? With so many employees routinely confused about their benefits or unaware of their options, they are less likely to take full advantage of them. Clear benefits communication during onboarding can prevent this turnover-increasing frustration. 

3: Boosted Productivity and Focus

Employees who have unresolved questions, concerns, or complaints about their benefits can experience distractions, less satisfaction, and reduced engagement, leading to decreased productivity. For example, an employee unsure about how to sign up for health insurance or how to access wellness resources might spend valuable time seeking answers instead of focusing on their work. A well-organized onboarding process that includes benefits education helps employees hit the ground running, contributing to a smoother and more productive transition into their new position.

Best Practices for Integrating Employee Benefits Guidance into Onboarding

Incorporating employee benefits into the onboarding process doesn’t have to be a complex or overwhelming task, but it is critical. “To boost adoption and help employees appreciate the value of their benefits, it must be efficient and intuitive for all employees to learn about, enroll in and modify their benefits,” writes MetLife. 

1: Begin Benefits Discussions Early

The earlier benefits are introduced, the better. In fact, the Society for Human Resource Management (SHRM) recommends getting the onboarding process started early, so new hires (and HR) will be ready to hit the ground running. Ideally, employees should start receiving information about their benefits package before their first day. This gives them time to review options and ask questions without feeling rushed. Sending a welcome packet or benefits guide a few days before the employee starts allows them to come prepared with questions when they meet with HR during onboarding.

Then, on day one, benefits should be a key topic of discussion, not an afterthought. A dedicated portion of the onboarding process—whether it’s an in-person meeting, video presentation, or detailed handout—should focus on explaining the benefits available, enrollment deadlines, and how to navigate the benefits portal.

2: Use Multiple Communication Channels, Including a Detailed Employee Benefits Guide

People learn and absorb information in different ways. To ensure all employees fully understand their benefits options, it’s helpful to communicate through multiple channels. For instance, an in-person presentation or Zoom session could be accompanied by a printed or online employee benefits guide that employees can refer to later. Follow-up emails or video tutorials can reinforce key points, ensuring that employees will continue to have access to the information they need after the onboarding session.

Small to mid-size businesses may not have large HR departments, so making use of technology can be especially helpful. A user-friendly, well-organized online benefits portal can allow employees to explore their options at their own pace and refer back to the information whenever necessary. An online portal seems to be the most popular and preferred channel for benefits education, according to an EBRI/Greenwald Workplace Wellness survey, but it’s followed closely by online tools that offer guidance through the decision-making process, online informational materials, and in-person group sessions. 

3: Offer One-on-One Benefits Guidance

Even with clear materials, navigating benefits can be confusing for some employees, particularly those new to the workforce or unfamiliar with certain benefits like health savings accounts (HSAs) or flexible spending accounts (FSAs). Offering one-on-one meetings with HR or a benefits specialist can go a long way in making sure employees feel comfortable with their choices.

One-on-one meetings won’t be necessary for everyone; the EBRI/Greenwald study suggests that only about a fifth (21%) of employees will actually need or want that level of hands-on support. However, offering the option of one-on-one guidance can be pivotal to a certain subset of workers whose unique situations are more complicated than normal. In these cases, these meetings provide a chance for employees to ask personalized questions, receive tailored advice, and make informed decisions. 

4: Get Help

The level of education and support needed for employees to fully understand their benefits package and confidently make benefits-related decisions can outstrip both the logistical capacity and the subject matter expertise of small to mid-size employers. Here, getting third-party support can be invaluable. 

In other words, an organization like a PEO can provide a level of support to employees related to employee benefits that most employers can’t match. This is particularly important for employers without staffed, in-house HR teams. For instance, according to Guardian’s 11th Annual Workplace Benefits Study, “Employers that use PEOs are far likelier (70%) than those that don’t (61%) to prioritize doing a better job of helping workers make better benefits decisions.”

Onboarding Is a Critical Period for Setting the Tone of an Employee’s Experience with Your Company

By incorporating a clear and comprehensive benefits guide and related communication from day one, employers can improve employee satisfaction, boost productivity, and increase retention. Small to mid-size businesses, in particular, can benefit from engaging employees early with their benefits, ensuring that employees feel supported and informed about their benefits package right from the start. This can not only help employees make informed choices but also help employees feel valued and confident in their decision to join the company.

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