Bigger isn't always better.

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

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

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

What's going on here? Surely those larger employers have correspondingly larger budgets and therefore more sophisticated benefits communication and enrollment programs, right?

Again, not so much. The reason for this apparent contradiction may be a more personalized focus on benefits education and enrollment.

Let's talk about it

Employees at smaller companies have much greater access to face-to-face communication to learn about their benefits, the survey showed. Workers at the under-100 companies are nearly twice as likely — 24 percent versus 13 percent for large companies — to get their benefits information in an individual meeting with a benefits counselor or human resources representative. Add in those who learn about their benefits in a group meeting with HR or their manager, and the disparity is even more dramatic: 61 percent compared to 39 percent.

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

Large employers, meanwhile, are twice as likely to use online enrollment systems: 53 percent versus 26 percent for small companies. Large employers may believe going digital is more efficient, but the survey showed it's not the most effective way to help employees understand their options and make the best choices for 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 clients don't get the return on their considerable investment in the benefits program — not to mention the impact on your potential income from lower-than-expected participation. Employers should consider shifting to a small-business mindset this enrollment season. Here's how:

Promote the value of personalized attention. Virtually all — 93 percent — of employees who participate in one-to-one benefits counseling sessions find them valuable, according to another Colonial Life survey earlier this year. The same survey found employees who are more engaged with their employer's benefits program are more likely to be satisfied in their jobs, have higher morale, and stay with the company longer.
Show them the bottom line. This kind of customized communication doesn't have to break the bank or overburden the HR team. A top-tier benefits provider will communicate with employees individually to ensure they understand all their employer's benefits — not just those the provider offers — as part of their included services at no direct charge. Be sure you're partnering with a provider that can bring this kind of value-add to the table with professional, licensed benefits counselors.
Combine high-tech with high-touch. Online enrollment isn't going away, and for many of your clients, it may make the most sense. But technology is a tool, not a stand-alone solution. For optimal results, use digital solutions as one element of a comprehensive benefits communication and enrollment plan that will reach employees and allow them to access information when and where they want. It may include call centers and online chats, website or portals, and print and digital materials offered over a period of several weeks — and yes, those all-important group and individual meetings.

Steven Johnson ( sdjohnson@coloniallife.com) is vice president of Enrollment Solutions at Colonial Life & Accident Insurance Company. Colonial Life & Accident Insurance Company is a market leader in providing financial protection benefits through the workplace, including disability, life, accident, dental, cancer, critical illness and hospital confinement indemnity insurance.

Instant Insights /

Acting like a small business can pay off big during benefits enrollment

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