Let’s be honest, insurance already has a bad rap. 32% of employees between the age of 18-43 would rather apply to a new job than go through open enrollment. And when it’s wrapped up in the holiday season, this experience can be a major source of stress and confusion for both employers and employees. To help you help your employees, we’ll explore the essentials of open enrollment, why it’s so confusing for employees, and actionable tips for HR to reduce stress and empower their teams during this critical period.
The purpose of open enrollment is to ensure employees can select or change their coverage for the year ahead. It’s the designated time each year when employees can enroll in or make changes to their benefits, but unfortunately, not everyone revisit their options and many miss out on the opportunity to make adjustments. Here’s what you need to know about open enrollment:
Open enrollment is often confusing for both employees and employers due to the sheer volume of information, complicated terminology, and the high stakes involved in making time-sensitive benefits decisions. Employees frequently face a maze of insurance terms like deductibles, premiums, and co-pays, which can feel overwhelming and lead to rushed or uninformed choices.
This is especially true for younger generations like “Zillennials” with over half admitting to blindly selecting a health insurance plan because they didn’t understand the details, and 46% later regretting their decisions. For employers, the challenge lies in effectively communicating these options while managing questions, updates, and compliance requirements within a tight timeline.
The pressure to educate employees and facilitate decision-making without overwhelming them can make open enrollment a daunting experience for everyone involved.
The data from JustWorks shows that employees want more resources and information. 45% of the largest group in the workforce today are not sure where to direct their questions about the open enrollment process. HR teams play a pivotal role in simplifying open enrollment for employees, so here are a few actionable ways for HR to ease the process:
Launch your open enrollment campaign well in advance. If you have the means, launch the open enrollment period as an event. Use multiple channels like email, intranet updates, webinars, and live Q&A sessions to ensure employees have ample opportunities to absorb information.
Avoid jargon and break down complex terms. Offer a glossary of key insurance terms and real-world examples to illustrate how different plans work. Comparison charts, videos, or infographics are great learning aids that can help simplify the decision making process for employees.
If you provide a 2-4 week open enrollment period, you could break down different aspects of open enrollment for each week to help employees fully understand what they’re selecting. For example, the first week is for medical, vision, and dental. The second week could focus on financial support options like 401K, life insurance, and other insurance programs. Then you could wrap up open enrollment with non-opt in benefits and programs employees have access to, like paid parental leave and parent coaching with Parento.
Ask your broker or benefits provider for interactive tools, benefits calculators, or AI-driven chatbots that can help guide employees toward personalized recommendations based on their needs and budget. This can help employees feel more informed and confident about their choices.
Provide one-on-one or small-group meetings with HR or benefits experts to answer specific questions and address unique concerns. Make sure managers know where to direct employees with questions, preferably before open enrollment ends.
Beyond the immediate logistics of open enrollment, employers should consider the broader impact and usage of their current benefits offerings. Here are a few more ideas to consider between open enrollment periods.
With these ideas, employers not only make open enrollment more effective but also demonstrate their commitment to supporting employees year-round.
Open enrollment doesn’t have to be a source of dread. With clear communication, thoughtful resources, and a proactive approach, HR teams can transform this annual event into an opportunity to engage and empower employees. By helping them understand their options and make informed decisions, organizations can foster a more confident and supported workforce. While Parento doesn’t offer common open enrollment benefits, paid parental leave insurance can be included during the open enrollment window. However, unlike standard benefits, our comprehensive program can be added at any time of the year and requires zero employee opt-in. Chat with our team to learn more about offering paid parental leave and supporting your employees year round.
