How to address top 2024 open enrollment concerns
Here are a few things benefits advisors and employers should keep in mind when it comes to providing support and tools to help employees this open enrollment season.
Inflation and financial hardships remain at the forefront
Although the cost of eggs has finally returned to “normal” levels, the overall value of goods and services and the ability to cover one’s monthly expenses is still costing many Americans more. While health benefits remain a clear concern, many Americans today are faced with competing financial decisions when it comes to allocating their monthly paycheck. Things like student loan debt, being able to save for retirement and the ability to save for an emergency fund continue to be important considerations for individuals when it comes to their holistic financial picture. As a result, it’s not surprising that 7 in 10 (72%) of employed Americans strongly or somewhat agree that they will spend more time reviewing their benefit elections during open enrollment to make the most of their benefit dollars because of inflation.
While open enrollment is primarily focused on health care benefit decisions, one can’t ignore the impact enrollment decisions have on the ability to save for retirement. Three-quarters of Americans worry about the impact of inflation on their ability to save enough for retirement (75%), up significantly from June 2022. This correlation shows that inflation remains a concern for many, leading them to look for workplace benefit savings possibilities and support this annual enrollment — and employers have an opportunity to provide support in more ways than they have before.
Financial concerns can impact mental health
It’s important for employers to understand that financial stresses can extend beyond one’s bank account to impact mental health and wellbeing. According to PwC’s 2023 Employee Financial Wellness Survey, in the past year, financial stress and money worries have had a negative impact on more than half (55%) of full-time employees’ mental health. Similarly, Voya research has found that nearly 6 in 10 (57%) Americans strongly or somewhat agree that their financial stability has a direct impact on their mental health. For employers, recognizing the connection between financial concerns and the influence on mental health is critical — and what’s even more telling for employers is that our research has also found that 63% of working Americans somewhat or strongly agree that their mental health has a direct impact on their ability to perform their job effectively.
Perhaps what’s most important to consider is that more than half (55%) of employed individuals strongly or somewhat agree that their employer has a responsibility to support their mental and emotional well-being. Nearly half (48%) would select a workplace benefit offered by their employer that provides more mental health support and resources even if it costs them more. As mental health care support becomes more crucial, providing the resources that employees have come to expect can benefit everyone. Thus, it’s important to understand that both financial and mental health needs are now equally important components to incorporate as part of a comprehensive benefits package.
Support and guidance remain critical
Knowing the ongoing financial concerns impacting employees today, it’s not surprising that many individuals are looking for help. In fact, according to Voya research, a majority (79%) of employed individuals are interested in receiving support to maximize their workplace benefit dollars across their retirement savings, health savings accounts (HSAs), health care insurance and voluntary benefits at work.
Offering workplace benefits and solutions that look holistically across benefits and employee needs may help employees better utilize their benefits and potentially save more effectively, and it could also encourage greater confidence and reduce stress. This is not only crucial during open enrollment, but also year-round — particularly as our research has found that about two-thirds of employees (65%) are open to receiving information about their benefits from their employer outside of open enrollment to help them understand their benefits. Offering more integrated benefits for the employee overall is a way to help support them that can be influential throughout the year.
Final thoughts
Helping employees manage spending today while still being able to save for tomorrow is vital. As we approach open enrollment season, keeping in mind how these three themes — inflation, financial concerns and the impact to mental health — coincide with one another will enable employers and their advisors to better help employees address their needs through a comprehensive benefits package.
Nate Black is VP of Health Solutions at Voya Financial.