December 11, 2025

Actionable Strategies for Employers and Brokers

A new industry report reveals a surprising trend in employee benefits: understanding is up, but satisfaction is down. According to data from a recent survey by global advisory firm WTW, 80% of employees now say they understand their benefits, yet satisfaction has dropped to roughly 60%, down several points from the previous year.

For employers and brokers navigating a highly competitive labor market, and an environment where health plan costs continue to rise, this finding is more than a statistic. It’s a signal.

Employees know more than ever about what their benefits offer. But they aren’t necessarily seeing the value they expect. And that gap has real consequences for attraction, retention, and overall plan performance.

What’s driving the disconnect?

The jump in understanding suggests that employers and brokers are doing better at communication and education — an encouraging sign. But when understanding climbs and satisfaction falls, it often means:

1. Expectations have changed.

Employees are more informed about what’s possible in the benefits market, including flexibility, personalization, and wellness support. Standard offerings may no longer feel competitive.

2. High health care costs are reshaping perceptions.

Even with solid benefits, higher deductibles, pharmacy costs, and out-of-pocket expenses influence how employees feel about their coverage.

3. Employees want benefits that match their life stage.

A multigenerational workforce expects choice: family-friendly options, mental health support, chronic condition management, virtual care, and cost transparency tools.

4. Education doesn’t equal empowerment.

Employees may understand what they have but still struggle to navigate the system, use benefits effectively, or feel supported during complex care journeys.

What this Means for Employers and Brokers

This growing gap between understanding and satisfaction is a call to rethink the benefits strategy from several angles:

• Align the benefits design with real employee needs: A plan can be well-structured on paper but fall short if it doesn't reflect the health, financial and lifestyle challenges employees are facing today. Data-driven customization is becoming essential.
• Prioritize year-round engagement - not just open enrollment: Employees need consistent reinforcement, easy-to-use tools, and real human support to feel confident using their benefits.
• Focus on cost management without cutting value: Employers can't keep absorbing rising health care costs, but shifting too much cost to employees erodes satisfaction. The key is identifying cost drivers and managing them effectively. 

The Bottom Line

The new industry data sends a clear message: employees are paying attention — and they expect more. Employers and brokers who focus on aligning benefit design, cost control strategies, and member support will be better positioned to improve satisfaction and manage spend in 2026 and beyond.

Working with the right third-party administrator (TPA) or benefits partner can have a meaningful impact.

Nova is ready to help you bridge that gap with self-funded benefit solutions that are flexible, data-driven, and designed to support the whole person. Ready to learn more? https://www.novahealthcare.com/resources/self-funded-insurance