Hidden Trust Gaps in Employee Benefits: Why What You Say You Offer Isn’t Always What Employees Feel They Get

The Trust Gap You Didn’t Know You Had

If you ask most business owners whether they provide strong benefits, you’ll get a confident “yes.” They point to the dollars invested, the plans compared, and the renewals negotiated. But here’s the uncomfortable truth:

Employees often don’t feel that same level of confidence.

In fact, research shows that less than half of employees fully understand their company’s benefit package, and even fewer believe leadership is investing in their best interests. That disconnect is what I call the hidden trust gap.

It’s not just about information—it’s about perception. When an employee doesn’t understand their benefits, or doesn’t trust that leadership considered their real-life needs, the entire investment gets diminished.

And this gap isn’t abstract. It shows up in measurable ways: higher turnover, lower morale, recruitment struggles, and disengagement that quietly eats into productivity.

Why the Gap Exists

Leaders are not failing out of neglect—they’re failing because the system is designed to confuse. Benefits communication can often be filled with jargon, complexity, and a once-a-year scramble to explain plan changes in a thirty-minute meeting. Employees walk away with more questions than answers.

There are three root causes I see most often:

1. Complexity – Employees don’t know the difference between deductibles, coinsurance, and copays, and no one has the time to translate. If they can’t explain what they have, they can’t value it.
2. Communication – Employers spend months choosing a plan, but almost no time telling the story of why it matters to employees.
3. Connection – A benefit on paper doesn’t feel like a benefit until it touches an employee’s life. If the plan doesn’t address their priorities—or they don’t trust that it will—engagement never happens.

A Story That Illustrates the Gap

I recently met with a business owner in Central New York who was frustrated by high turnover. She was paying top-dollar for benefits, but exit interviews kept mentioning “better packages” elsewhere.

When we dug deeper, the truth emerged: her team didn’t actually understand the value of what she offered. They saw line items on a summary sheet but had no real idea how the plan supported them through everyday needs—like urgent care visits, mental health counseling, or protecting a growing family.

The benefits themselves weren’t the problem. The trust gap was. Once we helped her company reframe the plan in plain language, add simple education sessions, and show real-life scenarios, employee perception flipped. Turnover slowed dramatically.

The lesson: sometimes the best ROI comes not from changing the benefits package itself, but from changing how it’s communicated.

Closing the Gap: From Fine Print to Real Value

So how do leaders close this hidden gap and turn benefits into one of their strongest tools for trust, retention, and culture?

It comes down to three strategies:

1. Storytelling.
Tell the human side of benefits. Instead of “$25 copay for primary care,” tell the story of the new parent who doesn’t have to delay a pediatrician visit because it’s affordable. Employees connect with stories, not fine print.

2. Education.
Don’t settle for once-a-year open enrollment meetings. Offer brief, practical touchpoints throughout the year. Lunch-and-learns. Short videos. Q&A sessions. When people can ask questions in a safe space, they walk away with confidence.

3. Strategic Design.
Align benefits with both budget and employee priorities. For example: a small business might not compete with a Fortune 500 on health premiums, but can differentiate with voluntary benefits, wellness programs, or retirement matching. The goal isn’t to spend more—it’s to spend smarter.

Why This Matters Right Now

We’re at a pivotal time of year. As businesses plan for 2026, benefits decisions are on the table. And here’s the reality: employees have more choices and higher expectations than ever before.

Retention isn’t just about wages. It’s about whether people feel valued—and benefits are one of the most visible signals of that value.

If employees don’t trust the benefits, they don’t fully trust leadership. That’s why addressing the trust gap isn’t optional. It’s strategic.

The CH Advantage: Small Business Expertise

At CH Insurance, we’ve built our entire approach around helping small and mid-sized businesses close this gap. Why? Because we know their challenges are different.

• • Our BOOST (Benefits Optimization Opportunities for Small Business Teams) program is designed to make every benefits dollar work harder—helping leaders both design smarter plans and communicate them in ways employees actually understand.
• • Our 100 Under 100 initiative focuses specifically on companies with fewer than 100 employees, giving them tools, leverage, and expertise usually reserved for larger organizations.

A Call to Leaders

If you’re a business owner or HR leader, here’s my challenge to you:

Don’t just ask, “What can we afford?” when planning your 2026 benefits. Ask instead:

• Do my employees understand what we’re offering?
• Do they trust that leadership considered their real needs?
• Do they feel supported in ways that matter to them?

Those are the questions that separate an average benefit program from an unforgettable one.Because at the end of the day, being “in your corner” means more than managing premiums. It means closing the trust gap—so employees know their company has their back when it matters most.

 Joe Courcy is Asst. Vice President of Group Benefits at CH Insurance. He leads the firm’s BOOST program, which helps small to mid-sized companies design, communicate, and optimize employee benefits that build both trust and retention. Learn more about CH’s 100 Under 100 program and how it helps businesses in Central New York compete for top talent.