As open enrollment season quickly approaches, it is time to begin thinking about the best ways to engage and prepare employees for this annual opportunity. But with the Affordable Care Act (ACA), shifting demographics and ever-evolving technologies, the employee benefits landscape only continues to get more complex which makes HR administration even more time-consuming, confusing and burdensome.
According to the U.S. Bureau of Labor Statistics, the average cost for comprehensive employee benefits equals approximately 30% of total compensation. The highest expenditures go to health insurance and legally mandated benefits (social security, workers’ comp, unemployment and Medicare), which account for almost half of total compensation. With such a costly line item, it’s alarming to realize that too few employees truly understand what their plans have to offer.
Considered the building block of financial wellness, open enrollment is one of the most important opportunities of the year for employees to establish a strong financial foundation and learn about employee benefits. But, according to MetLife’s 15th Annual Employee Benefit Trends Study (EBTS), nearly half of employees are concerned, anxious or fearful about their current financial wellness because they can’t navigate the benefits information they receive, they don’t have the time or energy to dig in, they don’t know who to turn to with questions or they simply assume they don’t need employee benefits.
But with so much time and energy spent on processing paperwork, it can be a challenge. How do HR departments educate employees on the value of benefits offered and translate the services they have available?
4 Tips to Address Employee Benefits During Open Enrollment
Take advantage of this annual opportunity to help staff better understand their employee benefits, highlight how they can offer financial protection in the event of something unexpected and strengthen loyalty among employees in the process.
Here are 4 quick tips to prepare for a successful open enrollment period.
1. Live and Learn.
Use last year’s open enrollment experience as a guide to identify any past inefficiencies and review commonly asked questions. Determine ways to streamline processes and clarify how information is communicated this year.
2. Communicate.
One of the best ways to drive engagement with employees is to connect with them one-on-one. This allows them to ask questions and become actively involved in their benefit selections. Clear, frequent communication touch-points can help to reduce anxiety around the annual plan selection process.
3. Educate.
As the employee benefits landscape gets more complex and confusing, it’s up to the HR department to help employees understand their options, provide pros and cons and clarify questions through employee enrollment education so they can make the best decision for themselves and their family members.
4. Calculate.
It’s easy for employees to feel confused about “true costs” once deductibles, premiums and copayments are all factored in. Help them calculate costs, compare choices and weigh their options by offering the right tools and support.
Ultimately, HR departments should view open enrollment as a way to drive greater employee engagement, increase loyalty and help staff better understand employee benefits. But for some, the sheer volume of work outweighs these goals. For that reason, many savvy companies are turning to trusted support services to unload some of the burden.
NPPG Employee Benefits Planning
Northeast Professional Planning Group, Inc. (NPPG) has the experience and knowledge to help companies of all sizes administer strategic insurance and employee benefits programs to advance business goals, meet employee benefits coverage and retirement needs.
Take the burden off your shoulders and trust in NPPG. Our dedicated client relationship managers take care of the entire scope of plan administration to allow for uninterrupted plan coverage during open enrollment, assist with all applications for new coverage, termination procedures from previous carrier to new carrier, employee communications and administration protocols for new enrollees.
Grow your company with the right partner (stress-free)! Call NPPG at 732.758.1577 or contact us with any questions.