Benefits enrollment season is only a few weeks away for many organizations. At this point, employers are thinking about what they need to tell their employees, but may not be spending as much time on how to convey their messages effectively. While answering the question “What do I have to do?” is critical, employers also have to address the “Why should I care?” query if employees are going to make smart benefit choices.
Developing an action plan
Hewitt research shows that, despite efforts to encourage employees to become actively involved in benefits enrollment decisions, a certain percentage defaults into their current plan. The goal is to keep this percentage low, preferably below 20%. However, as choice, flexibility and complexity expand, it becomes even more difficult to engage employees in benefit enrollment so that they make the best benefit choices for them. And wrong choices can end up costing the employer—both in terms of dissatisfied employees and in money spent on benefit programs that aren’t fully utilized.
The solution starts by examining employee data. What plans are employees enrolled in today? How are they using their coverage? What tools are they using to make decisions? Employers should review the data, determine what employees are doing well and identify the two or three things they’d like to see them do differently during enrollment that will have a positive impact on both the business and their own lives.
Attracting attention
With an eye to changing behaviour, organizations need to focus on getting employees’ attention. Consider the following communication techniques for not only emphasizing the importance of smart benefit choices, but inspiring employees to take action:
• Add the personal element. It used to be that the only way to provide employee guidance was a one-on-one meeting with the benefits manager. Not anymore! Data and technology now offer simple ways to not only speak to the employee population as a whole, but also directly to individuals. For example, show an employee that not only didn’t he use the higher level of dental care coverage that he chose last year, but doing so meant that he wasn’t able to select other benefits he might have needed more. Providing employees with a personalized statement of how much they overspent on benefits enables them to clearly see how they can make smarter enrollment decisions.
• Utilize new media. Creative communication that captures people’s attention will result in more employees actively enrolling in much less time and in the best plan for them. If the goal is to guide people to the right benefit choices quickly, a lengthy printed enrollment guide isn’t going to cut it. Solutions like Flash presentations, podcasts, and even text messages can help employers reduce print costs while sharing information in a simple, engaging and convenient way.
• Keep the messages coming. E-mails also provide the opportunity make a big splash—and get the attention—at a good price. Employers can also track the results of how many employees open the e-mail and take the recommended steps.
• Provide decision-making help. Web tools are a powerful way to give employees the guidance they’re looking for. Options range from solutions that show how others “like me” made their decisions, to simple and fast quizzes that ask employees a few questions about their needs and preferences and provide enrollment recommendations.
• Use paper judiciously. Organizations don’t have to go paperless, but they should consider using less paper. Most people don’t (and won’t) read volumes. Printed materials should use marketing techniques and a clear call to action, directing people to additional tools and resources. Print can be especially effective for reaching the often forgotten audience — family members.
Making the most of what’s offered
Once employees understand why it’s important for them to consider their benefit options carefully and are prepared to do so, organizations need to provide them with the information they need to make the right choices. Fundamental messages beyond “how to” information include ensuring that employees know the enrollment deadline; understand the entire spectrum of benefits available and whatever coverage is provided by their partner’s employer; are familiar with new options; and, understand clearly how much they have to spend and how much available options cost.
Certain plan design features require additional explanation in order for employees to take full advantage of the benefits provided. For example, if the plan includes a health spending account or a group RRSP, it’s important for employers to ensure employees understand they can pay for healthcare expenses or make contributions to a retirement plan tax-effectively.
The plan may provide additional contributions toward the cost of benefits if an employee participates in certain initiatives, like smoking cessation or fitness programs. Some employers also offer matching contribution programs to retirement savings plans. Helping employees to understand these opportunities may ensure they’re utilized–and appreciated
If the employer offers investment advisory services, such as online advice or one-on-one financial counseling, it’s worthwhile to re-emphasize that employees can take advantage of these services to help determine what contribution to make to their retirement savings plan.
Developing strategies and solutions that get employees’ attention, simplify decision making, and give employees the right information to choose the coverage they need can help ensure that the benefits enrollment season is an active one.
Sarah Beech is managing principal, consulting, with Hewitt Associates. sarah.beech@hewitt.com
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