Five ways to improve employee benefits education & engagement

Turn open enrollment season from a challenging time to one of the most impactful, setting the stage for a healthier and more productive year.

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An organization is nothing without its people, and the human resources team is vital in ensuring a company’s employees are satisfied and getting the support they need. The reality is, workers won’t hesitate to leave for a better opportunity if they aren’t. In a 2022 Pew Research Center study, 43% of respondents said they left a job in 2021 because the benefits were not good enough. Yet, those individuals did not necessarily find greener pastures: only 42% said they saw an improvement, while 58% said their options were similar or worse in their new role. In today’s environment, open enrollment season should be looked at as the start of a new opportunity to educate and engage employees – helping your people and your business thrive.

HR leaders face significant challenges year-round due to the many moving pieces in people management, combined with the individual needs and wants of each person. There is variety in everything, from mental, physical, and emotional health needs to financial status to family dynamics. Employees have greater expectations than ever when it comes to their health and wellbeing, and companies today are expected to design and deliver employee benefits that are tailored to each person’s needs – a tall order. They also must educate employees about the full range of benefits available to them, from understanding different terminologies to parsing through numerous choices. It can be confusing for employees to evaluate and comprehend their options.

While open enrollment is the busiest time of the year for many HR professionals, benefits managers, and employees, it’s also the best opportunity to get in front of staff to discuss their health and wellbeing, helping them know that their company cares about their needs. Leadership should view open enrollment as an opportunity to boost employee engagement and increase participation in crucial programs that will help them be healthier and happier. When employees know their organization has prioritized health and wellbeing programs, they’re more engaged, motivated, and productive, leading to better business outcomes and a thriving culture.

Below, we’ll discuss five ways HR can successfully navigate the open enrollment period, avoiding common pitfalls while engaging employees and building community.

1)      Communicate through multiple channels

Information overload is a real issue for today’s workforce, with 80% of workers suffering its effects, according to a 2022 survey. The same report found that 76% of U.S. workers experience higher stress levels, 35% say their productivity suffers, and 30% are less satisfied with their roles. There are two primary catalysts: 1) the ever-growing amount of data processed daily, predicted to reach over 180 zettabytes by 2025, and 2) the sheer volume of platforms we use regularly: 26% of U.S. employees access more than 11 accounts daily. It’s no wonder that when it’s time for employees to choose their health care benefits (a complex decision in its own right), it often proves to be a challenge. The more benefits an organization offers, the more overwhelmed employees are, making it crucial to establish clear lines of communication.

HR teams should take a streamlined, digital approach to benefits communications to reach employees regardless of location. Save materials and resources in a centralized location accessible by computers and mobile devices, and leverage a range of communication methods like email blasts, virtual or in-person information sessions, and on-site signage to get the word out. In today’s world, multiple channels are necessary to bridge the physical gap between remote and in-person employees and the generational gap between younger and older workers. This approach allows employees to easily find the most relevant content for their needs. However, before starting any communications with employees, it is critical to understand the individual, focusing on factors like age, cultural identity, gender identity, pre-existing conditions, and social determinants of health (SDOH). With this information, HR can segment employees and deliver targeted communications that resonate and align with specific needs, maximizing impact and driving better engagement

2)      Be transparent about costs

Health care costs are expensive and don’t appear to be declining soon. Inflation has caused employees to be more cautious in choosing a benefits package they can afford, with data from Aon indicating that people spent six additional minutes on open enrollment in 2021. At the same time, employers are being hit with higher insurance premiums: Aon also found that average health care costs could skyrocket 8.5% to more than $15,000 per employee, nearly doubling the 4.5% increase from 2022 to 2023. Despite these cost increases, many companies are investing in the total wellbeing of their people. A recent Virgin Pulse survey revealed that 59% of employers planned to expand health and wellbeing programing, while 71% of companies indicated a definitive return on their investment.

While some employers absorb these increased costs, others pass them on to employees through elevated monthly premiums and out-of-pocket expenses. Either way, it is important to be transparent with employees about health care expenses because, unlike HR leaders, staff aren’t always familiar with the ins-and-outs of health costs. They may balk at higher costs – especially if it seems like they are being asked to pay more for the same benefits package. Companies must be willing to disclose the details of expenses in the spirit of transparency. However, it can’t be just about the numbers; it’s critical to weave in a narrative that depicts the positive impact of increased investment on individual wellbeing – how and where your company is investing in employees, including new or improved benefit offerings and portions of costs increases the organization is covering.

3)      Make open enrollment fun

Let’s face it: open enrollment season is not considered an exciting time of year for anyone. Yes, it’s vital to have adequate insurance coverage, but getting there can be stressful and time-consuming. Companies should look beyond the benefits themselves and have a broader organizational strategy focused on positive employee engagement and culture – and health and wellbeing is an important element of that strategy.

HR leaders can inject fun into the open enrollment process by creating company-wide challenges that involve everybody. Hosting activities like a group walk or yoga session – both of which could be adapted for remote employees – will get people thinking about their health and wellbeing. Allow employees to earn points for activities and redeem them for prizes. Implemented correctly, these activities can positively impact culture and help employees build new connections with coworkers or strengthen existing ones.

4)      Create new goals & course-correct when needed

In today’s business world, the “if it ain’t broke, don’t fix it” mentality is a recipe for disaster. As mentioned earlier, employees are more than willing to leave their roles if they aren’t satisfied. Companies must be agile and open-minded, especially around people management. For HR and benefits professionals, three common scenarios present hurdles to the effectiveness of health and wellbeing programs: 1) low or stagnant enrollment and utilization, 2) higher costs associated with specific lifestyles or conditions, and 3) incentives that fail to impact population risks. If these situations occur, HR must start planning to switch gears to address employee concerns/situations, match offerings with their priorities, and reevaluate how goals are defined.

Use the coming year to dig into the current state and understand where and how to make improvements. This is the time to determine the outcomes you want to drive among your workforce and establish new, meaningful, and measurable goals. Create opportunities to reassess progress along the way and adjust course as needed to keep your overall goals within reach. As yourself the following questions:

5)      Build an employee-first culture & reap the rewards

Open enrollment cannot and should not be the only time leadership communicates with employees about wellbeing and benefits. The overarching goal is improving employee total wellbeing, not just ensuring people are signed up for health care. To create a thriving culture, infuse health and wellbeing into the corporate mission, values, policies, and daily activities. When employees see their needs being reflected in the organization, it will build loyalty and reduce attrition.

Related: Create a dynamic company culture

Today’s HR challenges are different than they were five years ago. Employees are spread around the globe, and the diversity of factors impacting the workforce continues to grow and evolve, underscoring the need for more customized and humanized offerings. HR must ensure initiatives are inclusive of all populations. Building a team of wellbeing champions can help all employees feel connected to the organization with engaging activities year-round. And, most importantly, establishing a mechanism for obtaining feedback throughout the year will allow organizations to accurately measure the success of wellbeing efforts and adjust where necessary.

It’s time for change: turn open enrollment season from a challenging time to one of the most impactful, setting the stage for a healthier and more productive year.

Laura Walmsley, chief commercial officer, Virgin Pulse

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