Navigating the post-open enrollment marathon for employee benefits

Embarking on an employee benefits program is like leading a marathon team. The weeks and months leading up to an organization’s annual open enrollment period, when employees get to elect their benefits for the new plan year, are used to prepare the organization and its employees for the race ahead.

What follows is the ultimate long run: For employers, that’s operationalizing the organization’s benefits program. For employees, that’s using the benefits they’ve selected to access the services they need cost-effectively.

As open enrollment for 2024 slowly winds down and the focus moves from preparation to implementation, it’s important to talk about what comes next. For employers, that means continuing to support their employees once enrollment is over, including offering insights and strategies to ensure their benefits programs realize their full potential.

The three E’s of open enrollment: Engage, educate and empower

Recent statistics show that nearly 1 in 5 employees are either not confident or only slightly confident in their understanding of the benefits offered to them by their employer. According to the 2023 Alera Group Employee Benefits Market Outlook Report, 49% of respondents describe the process of making health insurance decisions “very stressful”, 41% find open enrollment “extremely confusing”, 20% have regrets about their decisions and only 47% know how much their employer contributes to the overall cost.

The onus is on employers to promote the value of their benefits programs during open enrollment and beyond, thereby increasing the benefits literacy inside their organizations. Better benefits literacy doesn’t just serve employees; it can also help the employer save money, considering that health insurers and employers spend $26 more on administration for every consumer with low health care system literacy. That translates to an annual cost of $4.8 billion across the United States, compared to the $1.4 billion each year spent on more literate workers.

With a potential savings of $3.4 billion a year, it makes sense that employers should invest in how their employees engage with open enrollment and their benefits. They can do that by:

• Enhancing the employee experience. That means guiding employees through their choices during enrollment and then helping them use what they choose in a way that drives satisfaction. This is especially important as employers work to meet the expectations of a younger and ever-changing workforce and offer them a variety of new benefits, from infertility and mental health to paid parental leave, according to the Outlook Report. MetLife’s 21st annual U.S. Employee Benefit Trends Study shows that employees who feel cared for in this and other ways are 65% more likely to be loyal. Insights from Voya Financial also show that 72% of employees will spend time reviewing their benefit elections during Open Enrollment to help make the most of their benefit dollars. Helping them along and providing comprehensive packages — from mental health counseling to critical illness treatment, family leave and Life Insurance payments — ensures organizations are meeting evolving employee expectations.
• Using proven techniques for year-round engagement. Establishing a robust strategy to engage employees throughout the year is not just a best practice, it’s also critical for employee satisfaction, usage and the overall success of the program. There are plenty of ways to do it, with HR technology like AI-powered automation playing a key role as highlighted in the report. That includes communicating around benefits and enrollment during new hire orientation and conducting regular employee check-ins to address any concerns or changes. Organizations can also create a feedback loop where employees can share their experiences and suggest improvements.
• Providing resources for timely benefit utilization: The easier your organization makes it for employees to access benefits information, the better it is for everybody. That involves making resources readily available across a variety of channels (e.g., print, digital, mobile and even in-person meetings) so as to reach all employees based on their individual learning styles and communications preferences.

Related: 5 generations of employees share their real open enrollment wants and needs

In the dynamic landscape of employee benefits, having the right strategy and ensuring that employees understand their benefit options will always be critical. Engagement, education and empowerment are the cornerstones of the intricate post-open enrollment marathon. The right strategies can also translate into program success and substantial savings.

Open enrollment is a holistic journey requiring continuous refinement. Nimbly navigating the post-Open Enrollment marathon offers employers and employees the opportunity to thrive, positioning the entire organization to maximize the value of the benefits program in the long run.

David Cagliola, president of employee benefits, Alera Group, Berwyn PA office