Making Your Ancillary Benefits Actually Worth the Cost

If you're a Long Island business owner spending thousands on dental, vision, and life insurance benefits that employees rarely use, you're not alone - and you're not getting your money's worth. Recent industry analysis shows that 40% of ancillary benefits at small companies go completely unused, representing wasted dollars that could otherwise boost retention and recruitment.

The post-enrollment period is the perfect time to audit whether your ancillary benefits investment is actually paying off. Most employers focus on major medical costs, but those "small" ancillary premiums add up to significant money - money that delivers zero return if employees don't understand or use what they have.

The Hidden Cost of Unused Benefits

Consider a 25-employee practice paying $150 per month for comprehensive dental coverage. That's $45,000 annually. If half your employees never schedule their covered cleanings or don't know about their orthodontic benefits, you're paying for coverage that generates zero employee appreciation. Those employees won't give you credit during performance reviews, won't mention benefits when referring friends, and won't factor dental coverage into their decision to stay.

The same pattern repeats with vision insurance, voluntary life coverage, and disability benefits. Employees can't appreciate benefits they don't understand, which means your investment fails to improve retention or make recruiting easier.

What Changed in 2026

This year's benefits landscape shows increased focus on preventive care utilization, with employers realizing that unused preventive benefits lead to higher claims costs later. Dental practices, accounting firms, and other professional service companies are discovering that employee education directly impacts both utilization rates and employee satisfaction scores.

The data is clear: companies with structured benefits communication see 60% higher utilization of ancillary benefits and report better employee retention. The difference isn't the benefits themselves - it's whether employees actually know what they have.

The ROI Problem

Every dollar spent on unused benefits is a dollar that could have gone to salary increases, bonuses, or benefits employees would actually value. Worse, employees who don't understand their benefits package often underestimate its total value by 20-30%. They're more likely to leave for a competitor offering a seemingly better deal that's actually worth less.

For Nassau County medical practices and Suffolk County law firms competing for talent, this creates a double loss: you pay full premium prices but get minimal retention benefit because employees don't recognize the value you're providing.

Making Benefits Work Harder

The solution isn't cutting benefits - it's making sure employees understand and use what you're already buying. Start with these immediate steps:

• Review last year's utilization reports from your carriers. If dental utilization is below 70% or vision below 60%, you have an education problem.
• Survey employees about their benefits knowledge. Most can't name their deductible, coverage limits, or even which services are covered.
• Calculate the per-employee cost of each ancillary benefit. When employees see that dental costs $1,800 annually per person, they're more likely to use it.

The goal is turning unused benefits into appreciated benefits. When employees actively use their dental, vision, and life insurance, they credit you as an employer - improving retention and making recruitment easier.

Beyond Open Enrollment

January through March offers the best opportunity for benefits education without the enrollment pressure. Employees are more receptive to learning about what they have versus what they might switch to. Professional benefits education during this period typically increases utilization rates within 90 days.

Consider hosting brief lunch-and-learn sessions focused on one benefit at a time. Twenty minutes explaining dental coverage generates more employee appreciation than a comprehensive benefits guide that sits unread in email.

Remember: every unused benefit represents money that's not working for your business. In today's competitive job market, Long Island employers can't afford benefits that employees don't understand, use, or appreciate.

When your investment in ancillary benefits translates to actual employee appreciation and retention, you get the ROI you're paying for. When it doesn't, you're essentially writing checks for goodwill you'll never receive.

Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This summary is for informational purposes only. Please contact your Benton Oakfield representative to review how these changes impact your specific plan documents.

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