From Campus to Career: Teaching Recent Graduates About Benefits

Quick look: As small and midsize business (SMB) leaders welcome recent college graduates to their workforce, one common challenge often arises: educating them on the value of their benefits package. For many young professionals, this may be their first time navigating health insurance, retirement savings, and voluntary perks. Clear, accessible benefits education can reduce confusion and boost engagement, retention, and satisfaction. Here’s how to coach recent graduates on their benefits, and how partnering with a professional employer organization (PEO) can simplify the process.

Benefits education tips from the pros.

Our free guide has all the tools you need to succeed, from expert advice to customizable email templates.

Access My Copy

Recent graduates offer significant value as employees: they bring fresh perspectives, are engaged and eager to learn, and help businesses build a pipeline of talent.

However, for many, college was focused on academics and career preparation, not health insurance premiums or 401(k) matching. As a result, when they enter the workforce, they may feel overwhelmed by complex terminology, acronyms, and paperwork.

Without clear guidance, this knowledge gap can lead to:

• Underutilization of benefits: Employees may skip preventive care, ignore wellness programs, or miss out on retirement contributions.
• Higher turnover: Staff who don’t recognize the value of their total compensation may leave for organizations with seemingly better benefits.
• Increased human resources (HR) workload: HR teams may spend substantial time re-explaining basics instead of focusing on strategic initiatives.

By prioritizing benefits education early, companies can set new hires up for long-term success while emphasizing the investment the company makes in their well-being. Below, explore which benefits this demographic values the most, essential topics to teach, tips for improving information retention, and how a professional employer organization (PEO) can streamline the process.

The most important benefits for recent graduates

In today’s diverse workforce, different generations value different benefits. While individual needs vary, recent graduates tend to value the following:

• Student loan repayment: Student loan debt in the United States tops $1.8 trillion, and a repayment program can help graduates pay down their balances faster.
• Mental health benefits: Gen Z is more likely than Gen X and Baby Boomers to say their mental health and well-being negatively impacts their work performance. Offering mental health coverage and access to an employee assistance program (EAP) can support mental wellness for all staff.
• Pet insurance: In 2024, the American Pet Products Association (APPA) reported Gen Z comprised 20% (18.8 million) of U.S. pet owners, a 43.5% year-over-year increase, and 70% own two or more animals.
• Financial wellness: Of all workplace generations, Gen Z has the highest interest in financial wellness benefits, including debt management services, personalized financial coaching, basic money management tools, and financial planning education.
• Health insurance: Some recent graduates may still be covered on their parents’ plan, but will need their own insurance when they turn 26.
• Professional development: According to LinkedIn’s Employee Well-Being Report, 61% of Gen Z employees want more workplace opportunities, and 76% would like to learn or practice new skills.
• Work-life balance: Nearly 90% of Gen Z believe the benefits of working remotely outweigh being on-site, highlighting the value of flexible work arrangements.
• Opportunities to give back: Research shows that 75% of younger employees believe an organization’s community engagement and societal impact is an important factor when evaluating potential employers, making perks like volunteer time off (VTO) crucial.

5 key benefits topics to teach recent graduates

Helping recent graduates understand their benefits doesn’t have to be complicated. By breaking things down into simple, jargon-free terms, employers can make a lasting impact on new hires’ financial well-being and job satisfaction. Here are five areas where a little extra guidance goes a long way:

1. Health insurance basics

Many graduates are used to being covered under a parent’s plan, and transitioning to employer-provided health insurance can be confusing. A clear overview can help them feel more confident about their choices, including:

• What a premium, deductible, copay, and coinsurance mean
• How in-network vs. out-of-network coverage works
• The importance of preventive care and wellness visits
• Differences between plan types (HMO, PPO, HDHP, etc.)

2. Retirement planning options

While retirement may feel far away to new graduates, studies show that younger employees contribute to 401(k) plans earlier than prior generations and understand the importance of saving for the future. Employers can support this momentum by explaining:

• Employer 401(k) match programs and vesting schedules
• How compound interest helps savings grow over decades
• Options for pre-tax vs. Roth contributions

3. Paid time off (PTO) and leave policies

Many employers have several PTO categories, and leave policies are often confusing even for tenured workers. Offering clarity upfront helps set expectations around:

• Types of PTO, and how it’s accrued and tracked
• The process for requesting time off
• What holidays are observed
• Available leave benefits (i.e., sick leave, family leave, bereavement leave, etc.)

4. Voluntary benefits

Optional perks can take a benefits package from average to extraordinary. Taking time to explain these options can help new employees understand the full scope of what’s available to them, such as:

• Supplemental insurance (accident, critical illness, hospital indemnity)
• Student loan repayment assistance
• Employee wellness programs and EAPs
• Pet insurance
• Family-forming support plans
• Legal services benefits
• Lifestyle perks like commuter benefits, gym memberships, discount programs, etc.

5. The importance of total rewards

Finally, consider communicating the “big picture,” or how salary, benefits, perks, and culture contribute to overall compensation and the employee experience. For instance, employees may ultimately take home more money at a company offering a slightly lower salary but strong healthcare coverage than one with higher pay but limited insurance benefits.

Best practices for educating recent graduates

After determining the key areas you want to cover, the next step is finding ways to educate and engage new hires. Here are strategies that work well with recent graduates:

Make it visual

Younger employees are accustomed to consuming information quickly and visually, making infographics, videos, and interactive guides more powerful than lengthy policy documents.

Use plain language

Avoid jargon and acronyms when possible. For example, instead of saying “qualifying life event,” you can explain it as “big life changes, like getting married or having a baby, that allow you to change your benefits outside the open enrollment period.”

Host onboarding sessions

Hold live or virtual benefits orientations where new hires can ask questions. These sessions should cover not just the “what” but also the “why” behind certain benefits, highlighting real-life use case scenarios.

Provide ongoing education

Benefits conversations should ideally take place year-round, not just during open enrollment. Share regular reminders, wellness tips, and updates to reinforce understanding.

ExtensisHR: Transforming benefits from “daunting” to “done”

For many SMB leaders, delivering benefits education that’s both thorough and understandable is easier said than done. Limited HR resources, competing priorities, and constantly changing regulations can make it challenging to offer the level of support new hires, especially recent graduates, need. This is where a PEO like ExtensisHR becomes invaluable.

We simplify every aspect of employee benefits for SMBs by providing:

• Access to Fortune 500-level benefits: We help SMBs offer competitive benefits packages that rival those of larger companies, including robust health plans, retirement options, and voluntary perks.
• Dedicated employee support: Recent graduates often have questions about their benefits. Our Employee Solution Center quickly delivers answers, providing clarity and saving your internal HR staff time.
• Proactive benefits communication: We share user-friendly resources, webinars, and tools that explain benefits in plain language, ensuring staff understand their options and make informed decisions.
• Compliance expertise: As regulations around health insurance, retirement, and leave policies evolve, we keep companies compliant and workers informed.

With the support of a PEO partner, SMBs can offer competitive benefits, impactful educational materials, and year-round communication to foster awareness, to both recent graduates and seasoned staff.

Ready to simplify benefits education without adding more to your plate? ExtensisHR can help. Learn more about our benefits solutions or start a conversation with us today.