Steering and Tiering in Benefit Plans: How to Communicate Value to Employees

Employers work hard to design great benefits, but if they’re too complicated or difficult to understand employees won’t use them. And they’ll miss out on the value strategies like tiering (guiding employees toward high-quality, cost-effective providers by offering lower out-of-pocket costs) and steering (offering financial incentives for choosing preferred options) are meant to provide. 

The Alliance recently held a webinar with Lauren Winans, CEO and Principal HR Consultant for Next Level Benefits LLC. External Link. Opens in new window. to give employers actionable tips and real-world examples on how to turn complex benefits into clear, compelling messages that empower employees to make informed decisions to maximize plan value. Lauren previously spoke at one of The Alliance’s webinars to help employers keep their employees engaged with their benefits year-round. You can get the insights from this session here. 

Why Clear Benefits Communications Matter

Designing an effective benefits strategy isn’t just about offering the right plans—it’s about ensuring employees understand and use them. When benefits information is simple and easy to understand, employees are more likely to make informed decisions and fully leverage the company’s investment in their well-being.  

Increased Engagement

When benefits are clearly communicated, employees are more likely to engage with their options, leading to higher utilization and a stronger appreciation for the company’s investments. 

Improved Plan Utilization

Clear and accessible benefits information empowers employees to make informed healthcare and financial decisions, leading to higher enrollment in relevant plans and maximizing the value of the company’s benefits offerings. 

Less Missed Opportunities

Without clear and accessible benefits information, employees may overlook the full value of their benefits package, resulting in underutilization and missed opportunities to maximize the company’s investment in their well-being and retention. 

Understanding Your Workforce

Effective benefits communication meets employees where they are both personally and professionally. Employers should consider generational, demographic, and industry-specific needs. For example, Gen Z prefers mobile-friendly visuals, Millennials engage with digital tools, Gen X values detailed emails, and Boomers favor printed materials. Language, culture, and literacy levels also impact accessibility. So, multilingual content and visual aids are essential. Industry-specific approaches—such as on-site kiosks for manufacturing, digital security for financial services, and mobile access for healthcare— can further enhance engagement. Tailored communication methods like persona-based communication, an omnichannel approach, and ongoing feedback, employers can ensure employees fully understand and utilize their benefits. 

Breaking Down Complexity of Steering and Tiering

Eliminate Jargon

Use plain, everyday language and focus on clarity and actionability by eliminating technical or industry-specific terms, using visual aids, and providing step-by-step guides to explain complex benefits information. 

Focus on Essential Details

Prioritize the most important information about the benefits plan. Highlight key features, eligibility, costs, and how to enroll or access the benefits. Eliminate unnecessary complexities. 

Use Visual Aids

Incorporate infographics, charts, and other visual elements to simplify complex information. Visual aids can make benefits details more engaging and easier to understand. 

Use a Storytelling Approach

Use relatable narratives and examples to explain how the benefits plan works in real-life scenarios. Storytelling can help employees better understand how to utilize the benefits. 

Leverage Checklists and Guidelines

Provide step-by-step checklists and detailed user guides to walk employees through key processes like enrolling, accessing, or claiming benefits. These practical tools promote clarity and actionability. 

Create Tailored FAQs

Anticipate common questions and pain points that employees may have and create centralized FAQs with clear, concise answers. Customize the FAQs based on employee demographics and feedback. 

Utilize Technology

Use analytics to measure understanding and engagement and iterate communications based on employee feedback. Utilize employee portals, mobile apps, chatbots, and personalized tools to amplify messaging, increase engagement, and gather data-driven insights. 

The Rule of 7

According to this principle. External Link. Opens in new window., someone needs to see a message seven times, through seven different channels, before they are likely to act. Below are some examples of messaging that communicates the value of steering and tiering in health benefits.  

	The first message could explain that steering and tiering mean having the freedom to choose a provider and the freedom to save money by choosing a preferred-value provider that offers good care at lower costs.
	Message two could clarify that low-cost care does not mean low value. In fact, there is no correlation between cost and quality.. External Link. Opens in new window.. External Link. Opens in new window.. External Link. Opens in new window. Employers can then link to their provider directory to help employees find in-network preferred-value providers.
	Message three could offer information about specific preferred-value providers in the area that employees could seek care from.
	Employers can use message four to identify the benefits of seeking care in an appropriate setting. For example, a visit to a primary care provider is more cost effective than going to the emergency room for a non-life-threatening condition.
	Message five could break down the copay structure for seeing providers in different tiers, emphasizing the savings of using preferred-value providers.
	The next message could highlight how high healthcare costs contribute to higher insurance costs and how employees can save money – both through current copays and stable future premiums – by seeking care from preferred-value providers.
	The seventh message could compare benefit plan options. For example, a high-deductible health plan (HDHP) has lower monthly premiums but a higher deductible, requiring participants to pay more upfront. A copay plan has slightly higher premiums but offers fixed co-pays and lower costs at preferred providers, reducing overall expenses for care.

Empowering Employees Through Better Benefits Communication

Engaging employees in their benefit plans requires a thoughtful, ongoing approach. By assessing current communication efforts, identifying quick wins, and planning for long-term improvements, employers can create a more accessible and engaging benefits experience. Investing in employee-focused tools and training ensures that benefits information is clear, personalized, and easy to navigate. Ultimately, a well-structured communication strategy empowers employees to make informed decisions about their benefits, leading to improved utilization and greater satisfaction.  

The Alliance helps our employer-members create communications that help their employees and covered family members get the most out of their benefit plan. Contact your Account Executive to access these communications.