Employers need to pick out the best employee benefits so that their workforce’s needs are met, and their benefits offerings are kept cost-effective.
This article will provide a comprehensive checklist to guide you through every step of the benefits enrollment process, helping you avoid common mistakes and ensuring you navigate through it smoothly.
What Is Open Enrollment for Benefits?
Open enrollment is a designated period during which employees can review, select, and make changes to their benefits plans for the upcoming year. It typically occurs annually, generally from November 1st to January 31st.
Open enrollment allows employees to enroll in or modify their health insurance, retirement plans, and other benefits without needing a qualifying life event. During this period, employees can choose from available options, update their coverage, and ensure their benefits meet their current needs. Open enrollment is a crucial opportunity for both employees and employers to align benefits with individual and organizational goals.
Note: A qualifying event means a significant life change that qualifies individuals to make changes to their benefits plans outside of the regular open enrollment period. There are different types of qualifying events, including loss of health coverage, changes in household, changes in residence, and more.
Key Phases of Employee Benefits Open Enrollment
Open enrollment typically proceeds through the following stages:
- Planning: This is the stage where you gather information and decide on the benefits to offer. For example, you might decide to add mental health support to your benefits package after noticing a growing demand for such services.
- Execution: This involves rolling out the benefits options to employees. You’ll provide them with the necessary information and guide them through the selection process. This could include creating a detailed employee benefits enrollment guide or hosting informational webinars.
- Review: After enrollment ends, review how the process went. Did employees face any issues? Were there any common questions? Use this feedback to improve the next enrollment cycle.
Employee Benefits Enrollment Guide
Employers can follow this checklist to prepare for their open enrollment process.
Review Employee Benefits Plans
The first step in pre-enrollment preparation is to review the current benefits plans. Employers need to evaluate whether these benefits still meet the needs of their employees and align with current industry standards.
For example, employers should look at which benefits employees are using the most. If any benefits plans are frequently utilized by employees, it might be worth expanding these offerings. In the meantime, if certain benefits are not used, it might be time to reconsider offering these.
Employers should also review the needs of their employees. This can be done through surveys, interviews, discussion boards, etc. It’s important to make sure that benefits offerings stay up-to-date and align with what the workforce needs. Employers can conduct employee surveys within a cloud-based HR software easily.
Update Benefits Plans as Needed
If employees have expressed a desire for new benefits, such as student loan repayment assistance or enhanced parental leave, consider adding these options. Offering benefits that employees need the most can help improve employee satisfaction and retention.
For benefits plans that are no longer relevant or useful, employers should discontinue providing these. For example, if your company previously offered COVID-related benefits, such as extra sick days for COVID-19, it might be time to either remove or replace these benefits.
Verify with Benefits Providers
After reviewing the current benefits plan, it’s time to communicate any potential changes to your benefits provider(s) and verify the final plans. It’s also important to discuss how to implement the adjusted plans and what resources are available to support them.
Furthermore, if your health insurance provider has made changes to coverage or pricing, ensure these are accurately reflected in the materials you provide to employees. This is important for avoiding confusion and ensuring employees are well-informed about their options.
Coordinate Benefits Plans Implementation
Work closely with your providers to ensure a smooth rollout of new benefits. For instance, if you’re implementing a new employee assistance program, coordinate with the provider to set up necessary training sessions or informational webinars for employees.
Employers should consider leveraging cloud-based benefits administration software to manage and track the implementation of the new benefits. Ensure that the software is configured to handle any changes related to the new program, such as tracking utilization rates or collecting feedback from employees. For instance, if your EAP includes a new feature like online counseling, ensure that your software can handle the integration and provide employees with a seamless experience.
Communicate with Employees
The next step would be to communicate the benefits offerings to employees. Start with crafting enrollment materials that are clear and concise.
Some tips for good communication include:
- Using simple language and avoiding jargon
- Including all necessary information and making sure all critical aspects of the open enrollment are covered, such as how to enroll, deadlines, and resources
- Consider designing a brochure or a digital guide to inform employees
Companies should also provide resources to help employees make informed decisions, such as:
- Setting up a team meeting to assist with questions during the enrollment period.
- If available, create a library of resources such as FAQs, video tutorials, and step-by-step guides that employees can access at any time.
Utilizing cloud-based benefits administration software can make this process easier and more efficient.
Verify Employee Benefits Enrollment Choices
After enrollment ends, verify that everything is correct. Managers should check for discrepancies or missing information.
For example, if an employee selected a new plan but it’s not showing up correctly, address it promptly.
Employers should also consider sending out confirmation emails or notifications to employees, letting them know their selections have been received and processed.
Ensure Compliance with Regulation Changes
It’s important to stay current with regulatory changes regarding employee benefits.
Managers need to ensure compliance with any new laws affecting benefits. Managers should consider regularly reviewing updates from government agencies, such as the Department of Labor or the Internal Revenue Service.
Companies can subscribe to industry newsletters, utilize labor law poster services, attend webinars, and participate in professional associations to stay informed about upcoming changes.
Navigate Benefits Enrollment Smoothly with Benefits Administration Software
With a well-structured checklist and effective strategies, employers can ensure a smooth benefits enrollment process that helps both the organization and its employees. Through thorough preparation, effective communication, and consistent reviews of offerings, you can make benefits enrollment a positive experience for everyone involved.
By following this checklist, you'll be able to streamline your benefits enrollment process with less time invested in planning. With cloud-based benefits administration software, this process can be completely automated without requiring manual monitoring and execution. Contact us today to learn more about how our solution makes your open enrollment more efficient.
