Are There Gaps in Your Employee Benefits Plan? What Employers Need to Know in 2026

Employee benefits are one of the most powerful tools an organization has to attract and retain talent. According to Hub International’s 2025 US Workforce Vitality Gap Index, roughly three-quarters of employees said they would be more likely to stay with their current employer if offered comprehensive and personalized benefits.

The findings reveal that many organizations believe they are meeting employee expectations, but the data suggest otherwise. Let’s explore how employers can support their employees with their benefits coverage.

What Are Employee Benefits Coverage Gaps?

A coverage gap occurs when an employee benefit plan does not fully protect employees or the employer in a specific situation. These gaps can arise from:

• Outdated plan designs
• Inadequate employer-paid coverage limits
• Lack of voluntary benefit options
• Misalignment between workforce demographics and plan offerings
• Misunderstanding of exclusions or waiting periods

Why Coverage Gaps Matter

Coverage gaps don’t just impact employees; they affect your organization’s:

• Recruitment competitiveness
• Retention rates
• Employee morale and engagement
• Financial risk exposure
• Brand reputation

In today’s workforce environment, employees expect transparency and meaningful benefits. A strong, well-designed program builds trust and loyalty.

How to Identify Coverage Gaps in Your Benefits Program

1. Collect Employee Feedback:

Send out surveys to your employees to gather information and opinions about benefits. Here, you can measure general sentiment and satisfaction.

2. Monitor Employee Benefits Trends

Stay informed on national and regional benefits trends to ensure your offerings remain competitive. For example, mental wellness continues to emerge as a top priority. Eighty-one percent of employees feel workplaces need stronger mental health benefits (Modern Health, 2025). Additionally, flexibility remains a leading workforce value, especially after COVID-19 accelerated demand for hybrid and remote work.

3. Analyze Workforce Demographics

Your benefits strategy should reflect who makes up your workforce today, not who it was five years ago. This includes:

• Age distribution
• Caregiver population
• Early career professionals with student debt
• Income bands and compensation structures 

4. Collect Claims Data Insights

Claims data can reveal patterns that employee surveys may not capture. For instance, if employees frequently use emergency services, that may signal gaps in primary care access. Evaluate:

• High-frequency medical claims
• Rising chronic condition trends
• Mental health utilization rates
• Prescription drug cost drivers
• Emergency room usage vs. preventive care visits

5. Pay Attention to Voluntary Benefit Participation Rates

If only a small percentage of employees elect supplemental disability or critical illness coverage, they may not understand the potential income gap risk. Analyze enrollment data by demographic group to identify which benefits resonate with employees and which need adjusting. Low participation in voluntary benefits may indicate:

• Poor communication
• Misalignment with employee priorities
• Confusing enrollment processes
• Inadequate employer education

6. Conduct a Compliance Documentation Review

Benefits compliance is another critical area where gaps can emerge. Even minor documentation errors can create legal exposure. A compliance audit ensures your program protects not only employees, but the organization as well. Review:

• ERISA documentation
• Summary Plan Descriptions (SPDs)
• ACA reporting requirements
• COBRA processes
• State-specific mandates
• Fiduciary responsibilities

Let’s Strengthen Your Benefits Strategy

At Ansay & Associates, we work with employers to evaluate their current benefits programs, identify potential gaps, and design customized solutions that support both business goals and employee well-being.

If you’re unsure whether your employee benefits plan fully protects your team, now is the time for a review.

Speak with an advisor today!