As the U.S. workforce evolves and employers confront new health, economic and social challenges, organizational health literacy has become a defining factor in shaping healthier, more resilient workplaces. Healthy People 2030, America’s recently published federal blueprint for public health priorities, explicitly elevates health literacy as a national goal, emphasizing that organizations bear responsibility for enabling people to find, understand and use health information effectively.
This article highlights organizational health literacy and ways that employers can improve it in their own workplaces.
Understanding Organizational Health Literacy
Healthy People 2030 defines organizational health literacy as the degree to which organizations “equitably enable individuals to find, understand and use information and services to inform health-related decisions and actions.” This is a shift from previous definitions that placed the burden solely on individuals. Instead, the updated framing highlights that organizations, including employers, shape the information environments their workers navigate, including benefits enrollment, safety training and well-being programs.
According to the Centers for Disease Control and Prevention (CDC), these definitions differ from those used in Healthy People 2010 and Healthy People 2020, which defined health literacy as “the degree to which individuals have the capacity to obtain, process, and understand basic health information and services needed to make appropriate health decisions.”
Per the CDC, the new definition:
- Emphasizes people’s ability to use health information, not just understand it
- Focuses on making well-informed decisions rather than “appropriate” ones
- Acknowledges that organizations share responsibility for addressing health literacy
- Incorporates a public health perspective
Why Organizational Health Literacy Matters
Health literacy has been directly linked to employee well-being, productivity and health care costs. In fact, research from public health experts published in the National Library of Medicine in 2021 found that low health literacy contributes to higher hospitalization rates and poorer chronic disease outcomes. When employees struggle to understand health information, the consequences may include:
- Poor benefits utilization
- Increased workplace injuries
- Higher absenteeism
- Elevated presenteeism
- Lower engagement in wellness initiatives
- Greater long-term health care expenditures
Healthy People 2030 specifically calls for attaining health literacy for all to improve nationwide well-being, including within workplaces and other organizational systems. Achieving this requires employers to adopt clear communication practices and supportive health infrastructures that meet the health needs of their workforce.
How Employers Can Improve Their Organizational Health Literacy
Employers can use the following strategies to help improve organizational health literacy:
Embed health literacy into leadership and strategy. Leaders play a pivotal role in setting expectations and ensuring health literacy is woven into policies, processes and workplace culture. To build ownership, employers can help leaders understand how health literacy affects outcomes and can potentially lead to lower health care spending, reduced errors, improved benefits utilization and fewer safety incidents. When leaders champion this work, it becomes easier to allocate resources, redesign confusing systems and measure progress. For example, a leadership team might commit to reviewing all employee-facing materials for clarity before rollout, ensuring consistent communication.
Train managers and HR in clear, accessible communication. Managers and HR teams directly shape how employees receive and interpret health information, so equipping them with plain-language and cultural competence skills is essential. Training helps them avoid jargon, explain benefits and procedures clearly, and check for understanding in supportive ways. This aligns with Healthy People 2030’s emphasis on improving communication quality so employees can confidently use health information in their decision-making.
Simplify information and access to resources. Employers can reduce confusion by streamlining benefits platforms, organizing information logically, and offering multilingual or alternative formats, such as providing both online and in-person benefits enrollment options, to ensure employees can easily access and understand their choices. Because many adults struggle to understand complex health materials, simplifying instructions and reducing cognitive load directly improves employee engagement with care and benefits. Clearer pathways and easier access help employees act on information quickly and accurately.
Empower employees through clear communication. Organizations should adopt communication standards that give employees the clarity they need to perform effectively. Consistent, plain language across internal documents, portals and training materials helps staff understand expectations, act with confidence and share accurate information in their roles. Strengthening internal communication in this way supports employee competency and fosters a workplace culture where everyone is equipped to succeed.
Build partnerships to strengthen support systems. Employers can expand their health literacy impact by partnering with local health systems, insurers, community organizations and public health agencies. Partnerships create access to trusted resources, education and outreach that employees may not be able to access on their own. These collaborations also help organizations address diverse needs and advance health equity.
Engage employees in continuous feedback. Employee participation ensures health information, tools and programs reflect real-world needs and preferences. Surveys, focus groups and advisory groups help employers refine communication strategies and identify barriers early. This collaborative approach supports public health guidance emphasizing that health literacy is shaped through social interaction and shared responsibility.
Provide year-round benefits education to strengthen health care literacy. Many employees engage with benefits information only during open enrollment, requiring them to process a lot of information in a little amount of time and leaving them unsure how to use their coverage for the rest of the year. Employers can close this gap by offering ongoing education through brief, accessible touchpoints, such as newsletters, flyers or seasonal reminders. Regular communication can help employees build confidence in navigating their plans, understand when and how to seek care, and make better-informed decisions.
Conclusion
Organizational health literacy is a strategic necessity in today’s evolving workplace. As employee health care needs change and navigating the modern health care system grows more complex, employers who build systems that empower every individual to make informed, confident health decisions are likely to benefit from a healthier, more engaged workforce.
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This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2026 Zywave, Inc. All rights reserved.
