5 benefit challenges to tackle this open enrollment

October 17, 2023 3:34 PM

Benefits leaders have their work cut out for them when it comes to putting together the most impactful offerings.

Only six in 10 employees are satisfied with their benefits — the lowest rate in a decade, according to MetLife. Seeking to examine things from an HR perspective, new and exclusive research from Arizent, EBN's parent company, found that a mere 30% of HR leaders believe their company does a good job of improving benefits utilization, and sheds light on what all survey respondents plan to do to improve the state of benefits within their organization.

Below are some of the top priorities and perceived challenges shared by survey respondents that can help benefits leaders formulate a plan for their upcoming year. Check out some of the greatest learnings, and access the complete report here.

Expanding supplemental benefits — and think beyond healthcare

Over half of benefits leaders plan to focus on supplemental benefits over driving utilization across core benefits, although this too remains a high priority for many. By communicating with employees to determine which voluntary benefit additions are considered high value, leaders can ensure that HR's energy is being channeled correctly.

HR leaders are particularly keen to expand benefits in the areas of healthcare, financial wellness and personal growth, according to survey feedback. One major advantage of introducing a wider variety of options: They can achieve their goal of appealing to a diverse workforce, a top priority for 30% of respondents.

Prioritizing preventive care

Targeting employee wellness has brought about an uptick in the amount and types of benefits being added to healthcare packages. Utilization of preventive and chronic illness management programs was ranked as a top-three priority by 36% of employers, and 40% of HR leaders said they are likely to or will be adding prevention and wellness offerings to their next cycle (Figure 5).

This focus is understandable, as preventive wellness efforts can lead to a reduction in employer medical costs, according to a Harvard study. HR leaders say they are offering or planning to offer access to virtual care, in-office screening and vaccination services, and incentive programs to employees who take advantage of these targeted benefits.

Increasing communication

To get the word out about current or upcoming benefits, as well as to see which will be well-received, employers are finding success when they adopt a variety of communication methods with employees. Forty-four percent of benefits leaders ranked "improving benefits communication" as a most important priority in the next year, with many noting it as one of their greatest challenges as well.

While email remains the most popular form of benefits communication, reminders through benefits portals and integrating details into company programs throughout the year were also commonly used. Additionally, regular mail, printed materials in the office and manager and employee champions were commonplace among respondents.

Getting better guidance

According to the survey, a main concern among HR leadership is how to make more thoughtful decisions, and for this they plan to lean on their brokers for expert advice and increased employee awareness. Those that already do are finding it extremely impactful.

"Our broker outlined vision benefits and services to our employees, going directly out to the field and talking during stand-ups, briefings, etc., which drew interest and utilization," said an HR leader at a professional services firm with over 50,000 employees.

While 84% of respondents said they already or will likely use materials from benefits brokers or advisers to increase employee education, another 63% said they already or will set employees up with direct access to a benefits advisor for answers to in-depth questions (Figure 7).

Saving money

No surprise here — finding benefits cost savings came in as the top priority over the next 12-18 months for benefits leaders. Only 20% reported they effectively saved money during their most recent enrollment, which ties in with the lack of resources they feel are available to make smart, cost-efficient decisions.

"Educational materials on benefits trends, executive buy-in and employee education would make the process of selecting benefits easier on me and my team," said one respondent from a professional resources company. "My team and I would like better choices with costs across different carriers — it gets too complicated."