The Battle to Make Employees Care About Benefits Sign-Ups
Despite the importance of open enrollment, most employees lack enthusiasm when asked to review health insurance and other benefits forms annually.
Nearly 7 in 10 (67%) spend 30 minutes or less on options, per a 2023 Voya Financial survey, with 42% taking just 20 minutes. Additionally, around 90% opt for the same selections as the previous year, said an Aflac report.
"Choosing benefits is extremely overwhelming," an expert said. "It's not something people want to focus on."
This year brings a fresh challenge: Employees are willing to spend less just as costs climb. The 2024 median monthly benefits spend—minus retirement—is $120, a $30 plunge over two years, said the industry group LIMRA.
Employees Feel Overwhelmed and Cost-Conscious
It’s not that employees don’t care about benefits— they mostly feel overwhelmed, confused, and now cost-conscious, experts said. That’s where employers come in, as many have been falling short with communication.
Experts explained that employers often struggle to educate staff about open enrollment, as HR teams with limited time and resources cannot properly communicate details on all work-place benefits, especially options like supplemental health. In short, employers “need to ensure employees see the value” of benefits.
Telling Stories and Discussing Costs Are Key
To remedy the situation, experts said education and communication need to be significantly improved, whether through storytelling, discussing costs, or using multiple methods to reach employees.
Only 54% of employees said their employer communicates well about benefits, according to LIMRA.
Rather than just providing information, employers must educate employees on which offerings fit their needs, experts advised. Simply listing available benefits often fails to convey the value to employees.
Experts recommend connecting employees with colleagues willing to share positive stories about how certain benefits helped them. Employers should also clearly explain costs and potential savings to show the financial value of benefits.
Utilizing Multiple Communication Methods
Reaching employees in a variety of ways— from online to printed mailings—is also crucial since employees have different needs and preferences. Virtual fairs, hard-copy documents, and decision-support tools provided by carriers can all help spread information.
Discussing Benefits Year-Round
Even though open enrollment gets attention, experts say communication should happen year-round. Doing so ensures employees understand offerings when needed and are prepared for open enrollment.
Sending information just once annually is unlikely to improve knowledge. Through ongoing, easy-to-grasp communications, “benefits will be top of mind for employees, they will understand the purpose and value of benefits, and they’ll remember to actually use them,” said one expert.
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The Battle to Make Employees Care About Benefits Sign-Ups
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