Bridging the Benefits Gap: Insights for HR Leaders During Open Enrollment
Bridging the Benefits Gap: Insights for HR Leaders During Open Enrollment
As open enrollment kicks into full swing, HR executives face a critical reality: there’s a noticeable disconnect between how employers and employees perceive workplace benefits. Understanding and addressing this gap is essential to ensuring workers feel supported and informed about their options.
The Perception Divide
According to a recent Prudential study, 68% of US employers believe their benefits communication strategies are effective. However, only 38% of workers share this sentiment. Similarly, while 66% of employers think their employees are satisfied with their benefits, just 51% of employees agree.
Another surprising finding is the difference in perceptions regarding personalized tools for benefit selection. While 75% of employers downplay the value of resources provided by brokers and insurers, nearly 70% of workers desire personalized advice to help navigate their options. These insights reveal an opportunity for HR leaders to rethink their approach to benefits communication.
Understanding the Communication Disconnect
For many HR teams, benefits communication has traditionally focused on providing detailed, technical information. However, as Casey Hauch, managing director at WTW, explains, this approach may not resonate with today’s workforce.
“Employees are expecting something beyond traditional HR jargon,” Hauch said. “You’re marketing a product to your employees. It’s about presenting information in a digestible, easy-to-understand way.”
This shift in mindset—viewing benefits as a product that needs effective marketing—can help bridge the communication gap and make benefits more accessible.
Small Adjustments, Big Impacts
While it may be too late to overhaul benefits packages for the current enrollment period, there’s still time to improve how they’re communicated. Melissa Foster, head of enrollment at Prudential, notes that many brokers and insurers offer tools that can be quickly implemented to support employees in their decision-making process.
One common misconception, Foster said, is that employees won’t use these tools. However, research shows nearly 90% of employees are willing to share personal information to receive tailored benefits recommendations. “It helps employees feel more confident in their choice when they know the personalized recommendation is based on their own specific needs,” Foster said.
Practical Steps for Improved Communication
There are several actionable ways employers can enhance communication during open enrollment:
Send Timely Reminders: Many brokers and insurers can assist with sending emails to employees who haven’t yet selected a plan. These emails can include reminders about deadlines and direct links to relevant information, making it easier for employees to act.
Simplify Access: Even if benefits information has already been distributed, providing quick access through targeted emails or online portals can save employees time and frustration.
Engage Employees Year-Round: Effective benefits communication shouldn’t be limited to the open enrollment period. Hauch emphasizes the importance of ongoing education. “You want to be engaging people and educating them about their benefits all year round,” she said.
Planning for the Future
Closing the perception gap requires a proactive approach. Foster suggests that employers start thinking about benefits strategy in the first quarter of the year. Reviewing current benefits usage, conducting employee surveys, and assessing feedback can provide valuable insights into what employees truly value and how they prefer to receive information.
By fostering open communication and building benefits plans that align with employees’ needs and expectations, HR leaders can create a more satisfied and engaged workforce. With the right tools and strategies, employers can ensure that their benefits truly resonate, providing the support employees need to thrive.