Companies devote a great deal of energy and countless working hours to meet the demands of end-of-year open enrollment periods. Offering quality benefits is a crucial aspect of retaining existing employees and attracting new talent, so a less-than-enthusiastic response to open enrollment can be distressing for employers.
One thing an employer can do to improve enrollment results is thoroughly evaluate current benefits and the employee population. Offerings should fit both the business and employees; some firms will see obvious signs they need major changes, while others must look for subtler hints.
Three signals it may be time to change benefits
- Workforce demographic changes.
Any shift in employee demographics can change insurance and benefits needs. For example, a single college graduate hired five to ten years ago may now have a family and be interested in supplemental life insurance, dependent care accounts, or flexible scheduling.
A substantial change in employment numbers — for instance adding a new department or growing headcount — can also indicate a need to revisit benefits, and a larger employee pool may qualify you for better pricing.
- Direct and indirect employee complaints.
If employees are complaining to managers or co-workers that they aren’t satisfied with benefit choices, or if low participation shows up in enrollment results, determine the cause and adjust benefits so investment better serves employees.
- Rising costs.
Reassess your benefit package when costs consistently rise or when you question whether you are getting the most value for your benefit dollars.
Good enrollment results require planning well before open enrollment begins. Early planning helps avoid poor turnout and gives you time to align offerings with employee needs.
Measures to consider during the planning phase
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Survey employees and hold focus groups to learn which benefits are most attractive. You can’t satisfy every individual need, but good communication helps construct a package that better matches overall employee priorities and shows you care about their needs.
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Meet with your benefits adviser to confirm that core plans, such as medical and dental, are competitively priced. If they are not, you may want to begin a request-for-proposal process.
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Compare your offerings to those of your main competitors to ensure your benefits remain competitive in the labor market. For small employers navigating enrollment and marketplace options, see Affordable Care Act Open Enrollment for Small Businesses.
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Consider adding new benefits. Don’t let costs alone rule out options: many supplemental benefits can be offered on a 100% employee-paid basis, and pre-tax flexible spending accounts for dependent care or health care are another low-cost option that employees often appreciate.
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Establish a routine midyear review to evaluate how each open enrollment went and identify improvements. For example, review the effectiveness of communication, whether employees had the tools to make good enrollment decisions, and the cost-effectiveness of in-house and external resources and technologies.
When reviewing plan design and participation, consider resources that explain plan evaluation best practices; for guidance on reviewing health plan choices and cost-effectiveness, see Evaluating Employee Health Insurance Benefits.
If you need help implementing changes or explaining options to staff, consider reaching out to support and talk to an agent about next steps.
Frequently Asked Questions
How can I tell which benefits employees value most?
Use anonymous surveys and focus groups to identify priorities; participation data from past enrollments also reveals what employees select when given choices.
Is it worth offering benefits that are entirely employee-paid?
Yes—many employees appreciate access to supplemental or voluntary benefits even when the employer does not contribute, because the availability itself adds perceived value.
How often should I review our benefits package?
A routine midyear review and an annual pre-enrollment evaluation help you spot demographic shifts, cost trends, and communication issues before the next enrollment period.
What should I ask my benefits adviser during a review?
Ask about competitive pricing, plan utilization, alternative plan designs, and whether a request-for-proposal might yield better options or pricing.