Not a lot of things are certain these days, but one thing you can count on is annual benefits enrollment. That said, your communication and engagement strategy for open enrollment should not be a rinse, wash and repeat process. Annual enrollment is one of the key opportunities during the year to cut through the clutter and get your employees’ attention.
WTW research shows healthcare benefits are a key factor in attracting and retaining employees. In fact, according to our 2022 Global Benefits Attitudes Survey, 48% of employees felt their healthcare plan was an important factor in why they chose to work for their current employer. 60% of employees felt their healthcare plan was also an important reason to stay with their current employer.
Think about that — all things equal, the reason people join or stay with your organization could be because of your benefits program. So, it stands to reason that annual benefits enrollment is one of the best times to highlight the value of your programs. We also know what employees look for when choosing their benefits.
This underscores the importance of making sure your employees understand the benefits available to them and their family members, how to maximize their value and how to select the right plans for their needs at the right price.
Make benefits enrollment a moment that matters in 2023
This year, employers should think about positioning their benefits, so employees pay attention, make smart decisions, maximize value and feel protected.
Everything costs more — and we’re all feeling the effects
The current economic environment is putting pressure on employers to contain costs and manage their healthcare spend, while balancing how to improve or maintain affordability for employees. In fact, 78% of employers reported increasing healthcare prices as a challenge to effectively delivering on their healthcare strategy.
Employees are struggling, too. Everything from eggs to mortgages are more expensive and the average 3-4% annual pay increases aren’t keeping pace.
Financial resilience and wellbeing are also center stage during 2023 benefits enrollment as costs continue to increase and employee spending power erodes. Many people over-insure as a precaution, but employees may not be able to afford higher premiums for that peace of mind.
Employers are helping their people understand why their healthcare costs are increasing. They’re also providing resources and information to help them choose the benefit options right for themselves and their families and better manage their healthcare costs throughout the year. This increased understanding helps employees maximize the value of their benefits and makes their dollars go further. Other ways employers are helping their employees during benefits enrollment this year include highlighting other benefits that support and protect employees financially, such as tax-advantaged accounts, voluntary benefits and life insurance.
The balancing act between cost management and affordability underscores the importance of helping employees make smart decisions
Employees continue to struggle with awareness and understanding of their benefits, not to mention how to select and navigate them, which is why 58% of employers cite improving communication regarding benefits a priority.
At the same time, employers are also providing more diverse, equitable and inclusive benefit choices to meet the needs of all employees. Whether that comes in added programs and point solutions or through plan design features like coverage tiers, the goal is there is something for everyone, especially as healthcare benefits increase in importance as an attraction and retention tool.
88% of employers are also planning to make changes to their benefit programs in the next two years. While this certainly expands choice, it makes it more complex for employees to decide which benefits are right for themselves and their families. And thanks to the family glitch fix, on top of what employers provide, there may be more affordable coverage options for dependents in the marketplace.
To help employees make informed decisions and get the most out of existing and new programs, it’s critical that employers highlight this once-a-year opportunity to make changes to their benefits and encourage them to take the time to evaluate their options. When it comes time for enrollment, employers should offer decision support tools to ensure their employees have access to the information they need to make informed decisions. With decision support tools, employees can receive plan recommendations best suited to their needs. More sophisticated tools can even help employees compare plan features and associated costs using their prior claim history. Information and resources should also be readily available to family members and dependents that may be the decision-makers.
Employees want to feel heard
Listening to your employees is an essential step in creating a successful benefits enrollment strategy. By taking time to listen to your employees, you can gain valuable insights about their needs, wants and desires for their benefit plans and communications, which can then be used to tailor your benefits enrollment strategy to ensure you offer the right benefits and communicate them in a way that optimizes your return on investment.
If you haven’t yet, there is still time to run an employee pulse survey or virtual focus group. Moving forward, consider building in listening to your annual enrollment strategy for the opportunity to compare year-over-year results. Giving your employees ample opportunities to share their opinions supports an all-around better employee experience.
The mental health crisis is pervasive
Since the pandemic, we’ve only seen the mental health crisis worsen, both in terms of prevalence and access. It not only impacts healthcare costs but also business performance, the employee experience and organizational culture.
Employers are using benefits enrollment as an opportunity to make sure employees are aware of the mental health programs available to them. While they continue to promote their EAPs, employers are taking mental health support to the next level by introducing new programs, implementing robust communication campaigns that demonstrate the organization’s commitment to emotional wellbeing, and making sure leaders and managers walk the talk.
Workforces are split between remote, hybrid and on-site work, so reaching employees and their families is even more of a challenge
There has never been an effective one-size fits all communication strategy, but today’s employers are implementing more tactics and channels (think ‘mobile-friendly’ and ‘mobile-first’) than ever before to meet people where they are. They are also leaning more on digital tools given how many hybrid and remote workers remain in the workforce post-pandemic.
QR codes on banners, digital signs and postcards are a simple, yet effective tactic that allows employees to download information easily without providing all the detail up front. Digital employee experience platforms and virtual benefits fairs are also growing in popularity for their ability to connect with employees when and where it’s most convenient for them. These tools power up enrollment by elevating the employee experience, delivering personalized messages that get the right information into employees’ hands at the right time, and supporting employees in making informed enrollment decisions for themselves and their families.
Employees are readjusting to life after COVID and sorting out what this means for them
Post pandemic, people are finding themselves in new and/or different situations, whether physically emotionally, financially or socially. They want help navigating their benefits to get support aligned to their new priorities, needs and challenges and make the most of their benefits.
With the national COVID-19 emergency ending, employers also need to decide what changes they’ll make to their benefit plans (i.e., covering over the counter COVID-19 tests) and how to communicate these changes to employees, whether they plan design changes or a call to action to reprioritize their wellbeing after putting off care.
Awareness of voluntary benefits may be low — and employees may be missing out
Voluntary benefits — such as life, disability, critical Illness, identity theft, legal, and pet insurance — can provide employees with financial stability and security during times of economic uncertainty and help protect their long-term financial wellbeing. By empowering employees to understand the voluntary benefits available to them, they can take advantage of these financial resources and feel protected for whatever life throws their way. While employees can sometimes enroll in them throughout the year, annual enrollment is a great time to remind people of their options and how they can supplement their “core” benefits to meet their unique needs.
Let’s make annual benefits enrollment a moment that matters
A thoughtful approach to employee communications can improve employees’ perception of their benefits package and improve both attraction and retention. This year, as you roll out your benefits enrollment communications, consider:
