Workers at theunder-100 companies are nearly twice as likely to get theirbenefits information in an individual meeting with a benefitscounselor or human resources representative. (Photo:Shutterstock)

Bigger isn't always better.

Not when it comes to your clients' annual benefits enrollment,anyway. Turns out, workers at the smallest U.S. businessesunderstand their benefits the best, according to a recent surveyfrom Colonial Life.

The company asked 1,506 full-time employees how well theyunderstand the benefits available to them at work. Those atcompanies with fewer than 100 employees were significantly morelikely to say they understand their benefits "very well" — 47percent compared to just 35 percent for workers at large companieswith more than 500 employees.

Not only that, workers at those smallest companies are much morelikely to say enrolling in their benefits is "not difficult at all"— 71 percent compared to 55 percent of workers at the largestcompanies.

What's going on here? Surely those larger employers havecorrespondingly larger budgets and therefore more sophisticatedbenefits communication and enrollment programs, right?

Again, not so much. The reason for this apparent contradictionmay be a more personalized focus on benefits education andenrollment.

Let's talk about it

Employees at smaller companies have much greater access toface-to-face communication to learn about their benefits, thesurvey showed. Workers at the under-100 companies are nearly twiceas likely — 24 percent versus 13 percent for large companies — toget their benefits information in an individual meeting with abenefits counselor or human resources representative. Add in thosewho learn about their benefits in a group meeting with HR or theirmanager, and the disparity is even more dramatic: 61 percentcompared to 39 percent.

The same pattern holds true for actually enrolling in theirbenefits. Only 22 percent of employees at the largest companiesenroll in person with a benefits specialist or HR rep, while 38percent of employees at the smallest companies enjoy thisopportunity. In fact, that face-to-face meeting is the most commonenrollment method used by the small employers.

Large employers, meanwhile, are twice as likely to use onlineenrollment systems: 53 percent versus 26 percent for smallcompanies. Large employers may believe going digital is moreefficient, but the survey showed it's not the most effective way tohelp employees understand their options and make the best choicesfor themselves and their families.

How to think small

Employees who don't understand their benefits don't value them,and they're less likely to participate. That means your clientsdon't get the return on their considerable investment in thebenefits program — not to mention the impact on your potentialincome from lower-than-expected participation. Employers shouldconsider shifting to a small-business mindset this enrollmentseason. Here's how:

• Promote the value of personalized attention.Virtually all — 93 percent — of employees who participate inone-to-one benefits counseling sessions find them valuable,according to another Colonial Life survey earlier this year. Thesame survey found employees who are more engaged with theiremployer's benefits program are more likely to be satisfied intheir jobs, have higher morale, and stay with the companylonger.
• Show them the bottom line. This kind ofcustomized communication doesn't have to break the bank oroverburden the HR team. A top-tier benefitsprovider will communicate with employees individually to ensurethey understand all their employer's benefits — not just those theprovider offers — as part of their included services at no directcharge. Be sure you're partnering with a provider that can bringthis kind of value-add to the table with professional, licensedbenefits counselors.
• Combine high-tech with high-touch. Onlineenrollment isn't going away, and for many of your clients, it maymake the most sense. But technology is a tool, not a stand-alonesolution. For optimal results, use digital solutions as one elementof a comprehensive benefits communication and enrollment plan thatwill reach employees and allow them to access information when andwhere they want. It may include call centers and online chats,website or portals, and print and digital materials offered over aperiod of several weeks — and yes, those all-important group andindividual meetings.

Steven Johnson ([email protected]) is vice president of EnrollmentSolutions at Colonial Life & Accident Insurance Company.Colonial Life & Accident Insurance Company is a market leaderin providing financial protection benefits through the workplace,including disability, life, accident, dental, cancer, criticalillness and hospital confinement indemnityinsurance.