Employers invest time and money to build a benefits offering that meets diverse employee needs and supports the organization's recruiting and retention goals. However, less than half of employees (44%) report that their employer does "extremely well" or "very well" when communicating about the company's benefits offering.
Organizations are missing opportunities to optimize their benefits programs through strategic employee communication, education and decision-making tools. The missed opportunity comes at a cost. When employees rate the employer as communicating about benefits "extremely well," 89% also report high satisfaction with their benefits.
The annual open enrollment period can be overwhelming for employees, with plan complexity and a lack of understanding affecting their enrollment decisions. The International Foundation of Employee Benefit Plans finds 49% of employees don't understand their health benefits. As a result, employees spend an average of only 18 minutes on benefits enrollment. Most elect to re-enroll in the same coverages year-over-year rather than consider options based on current needs.
Employers can optimize their benefits investment by enhancing three elements of their communication and education strategy – personalization, frequency and decision-making support.
Strategic communications bolster benefits enrollment
In today's digital and hybrid work environments, annual one-size-fits-all benefits communication packets often get lost. Instead, employees expect to have basic benefits information and educational resources easily accessible when needed.
Start with personalization
As consumers, employees are familiar with targeted, highly customized shopping experiences. They approach benefits enrollment with the same mindset and employers need to adjust.
Employers can address these expectations by personalizing enrollment communications to highlight benefit options and plan features based on an employee's age, life stage or family dynamic. More sophisticated personalization tailors relevant messages for the employee's preferred communication channels, language translation and interests.
Increasing frequency produces better results
The timing of communications also plays an important role in employee engagement and participation. A mix of on-demand access to information combined with proactive messages helps to keep benefits top of mind for employees. By providing regular reminders and educational information throughout the year, employers can reduce information overload during open enrollment.
Education helps with decision making
Educational decision-making tools empower employees to explore their benefits options and make enrollment choices that align with their personal needs. Educational tools and resources also help employees make the most of their benefits after enrollment. For example, Harvard Pilgrim Health Care provides its eligible members with an interactive Decision Doc tool, powered by HYKE, that gives offers cost comparisons and personalized guidance during enrollment. After enrolling, the Estimate My Cost tool helps members find and compare available care options for services and procedures as they need them.
During the enrollment period, better communication helps employees understand their benefits packages. Employers can create a more personalized approach that uses education and decision-making tools to enhance the experience with their workforce.
Learn more about how Harvard Pilgrim Health Care, a Point32Health company, can help build whole-health benefits packages to support employees and their families.
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