Helping employees make smarter benefits elections during open enrollment

As open enrollment season approaches, HR teams and employers face a critical challenge: how to effectively communicate benefits options to employees in a way that empowers them to make informed decisions. Unfortunately, many employees remain in the dark when it comes to understanding the benefits available to them, risking choices that could impact their health, financial wellbeing, and long-term satisfaction. Today’s workers are preoccupied; they’re busy at work and home, don’t have much free time, and are overwhelmed in general because of the daunting nature of health care and finance.

A recent study found that 1 in 4 employees feel uninformed during open enrollment, which means a significant portion of the workforce may be making decisions based on incomplete or misunderstood information. This can lead to costly mistakes for both employees and employers, affecting not only individual outcomes but also overall organizational performance.

The stakes are high for employers and employees alike

When employees make poor benefits choices, the consequences extend beyond personal inconvenience. Uninformed or rushed decisions can result in higher health care costs, inadequate coverage, and missed opportunities for long-term savings. For employers, this translates to higher costs related to health care claims, increased absenteeism, decreased productivity, and employee turnover.

A common example is, an employee doesn’t fully understand their health care plan and might select a high-deductible option because it seems cheaper, only to be hit with unexpected out-of-pocket expenses later. Similarly, skipping out on financial wellness benefits like 401(k) matching or flexible spending accounts (FSAs) could mean leaving money on the table that could have helped secure their financial future.

With so much at stake, the onus is on HR teams and employers to ensure employees are fully informed and confident in their decisions. However, traditional approaches to benefits communication—like dense emails filled with jargon, multi-page PDFs or long presentations—often fail to resonate with employees. There’s a growing responsibility for organizations to prioritize clear, accessible, and personalized communication strategies during this crucial period. The key is how.

The communication gap and where employers fall short

One of the biggest challenges in today’s workplace is disconnected between employers and employees when it comes to communicating benefits information. This gap is often attributed to:

Overwhelming information: Employees are bombarded with a tsunami of information during open enrollment. Rather than breaking down complex benefits into manageable, digestible pieces, HR teams often unintentionally present everything at once, leaving employees confused.

Generic communication: Mass emails or intranet posts fail to engage employees on a personal level. These methods often lack relevance and make it hard for employees to see how the benefits options directly impact their individual circumstances.

Failure to adapt to modern preferences: Today’s employees are digital natives. Relying solely on email or written materials overlooks the growing number of employees who prefer mobile apps, video content, or face-to-face interactions.

Jargon and complexity: Communications around enrollment and health care in general have a lot of jargon. For example, terms like PPO or high-deductible plans, FSA, HSA and more. HR teams play an important role in eliminating the complexity and using language that everyone can understand.

Related: More than half of U.S. employees regret their open enrollment decisions, study finds

Advice for HROs: Prioritize clear and personalized messaging

There are a few concrete and tangible next steps to improving internal communications around this year’s open enrollment period.

1. Segment communications: Rather than sending the same benefits information to every employee, HR teams should consider segmenting their workforce by demographics, job roles, or life stages. For example, a younger employee may be more focused on financial wellness and student loan assistance, while an older employee may prioritize retirement savings and health care coverage. HR pros can use an AI audience builder to address the specific needs of each group, making the information more relevant and engaging.
2. Drip, don’t dump: Instead of an information avalanche, consider a steady drip of bite-sized, easily digestible content throughout the year. This allows employees to absorb and retain information more effectively, preventing confusion and keeping them engaged.
3. Use an omni-channel approach: Some employees may prefer in-person meetings or 1:1s with managers, while others may appreciate mobile app notifications or short, digestible videos. It’s crucial to meet your workers where they are. This is especially important for deskless workers, which make up 80% of the workforce. It is essential to use omni-channel to ensure employees receive important HR information and access to benefits and programs on their preferred channels, like mobile.
4. Simplify the language: Benefits information can be complex, but it doesn’t have to be confusing. HR teams should aim to simplify the language used in benefits communications and break down the key points into clear, easy-to-understand messages. Using visuals such as charts, infographics, and examples may help employees grasp complex concepts more easily.
5. Implement ongoing support: Open enrollment isn’t a one-time event—it’s a component of an ongoing process of employee education and support. Employers should offer year-round resources, such as webinars, FAQs, and dedicated support teams, to help employees stay informed and ask questions as they arise. Providing a dedicated point of contact for benefits questions can also give employees the confidence to ask for help.
6. Focus on total rewards. Expand the communication to highlight the full spectrum of total rewards, ensuring employees understand the breadth of support available. This includes mental health resources, paid time off, and financial wellness. By communicating these elements clearly, employers can ensure employees see the full picture of what’s available to support their holistic wellbeing, making open enrollment a more meaningful and engaging process.

The open enrollment period is a crucial time for both employers and employees. To ensure that employees make the best possible benefits decisions, HR leaders must focus on clear, personalized, and accessible communication. By adopting modern communication strategies, HR teams can empower their workforce to make informed choices that support both their health and financial wellbeing, leading to smarter elections, fewer costly mistakes, and a more engaged, productive, and satisfied workforce.

Sabra Scioaro, Chief People Officer, Firstup