How does a Cafeteria Plan create greater employee awareness of benefits?

A Cafeteria Plan enhances employee awareness of benefits primarily by requiring employees to select their benefits. This selection process prompts individuals to actively engage with the available options, leading them to consider and evaluate the benefits that best meet their personal and family needs. When employees are involved in choosing their benefits, they often become more informed about the different types of coverage available, understand the value of those benefits, and recognize how they align with their specific circumstances.

This engagement fosters a deeper knowledge of the entire benefits package, rather than passively accepting preset offerings. The act of making choices encourages individuals to reflect on their health, financial wellbeing, and lifestyle requirements, leading to a more customized benefits experience that is relevant to them.