Open Enrollment Requires Clear Presentation

The annual open enrollment period can be a time of dread for both employers and employees. The process is usually complicated by multiple plans, coverage level changes, cost increases, and strict deadlines. Yet, like death and taxes, open enrollment is unavoidable.

Studies have found that benefit enrollment functions much better, and employees show a greater level of appreciation, when a good communication plan guides the process. A survey by MetLife found that employees spend less time making annual benefit decisions (13%), than they do planning a vacation (28%), doing their taxes (24%), and/or shopping for a new car (16%). With benefit decisions having the potential to either create or avert financial havoc for an employee, a good communication plan is critical to capture the attention of employees and drive home the important message that benefits matter.

Most employees will not seek assistance or advice from outside professionals when enrolling for benefits, so the communication package employers provide must educate beyond the basics to help employees make really effective, responsible decisions. Retirement/investment plans require frequent review as family status, age, and career change. Health plans often require extra attention now, too, as coverage shifts to more consumer-driven arrangements.

As a general rule, the annual enrollment process should be approached as an opportunity for employees to take stock of their current coverage, assess their future needs, and make any necessary adjustments to provide adequate coverage. Communication materials should guide the employee through life-stage decisions and fiscal responsibility, not merely cost increases and plan changes.

While many benefit professionals agree that ongoing and frequent communication provide the most satisfying results for employees, a concentrated effort needs to take place at annual enrollment time. Employees need plenty of tools, time, and honest information to help them through this difficult, but potentially rewarding, process.