Category: Employee Benefits

Open enrollment is an opportunity for business owners to review and communicate their benefit offerings, ensuring employees can make informed decisions. To ensure a smooth process, employers should start by reviewing plan options, costs, and compliance requirements, including updates to healthcare laws or regulations. Clear, transparent communication is essential—provide detailed plan summaries, FAQs, and enrollment guides to help employees understand their choices.

USE TECHNOLOGY

Employers should also consider leveraging technology, such as online enrollment platforms, to streamline the process and reduce administrative burdens. Offering educational sessions or webinars can increase employee engagement and understanding of their benefits. It’s important to set deadlines and send reminders to ensure timely enrollments by employers.

FEEDBACK

Collect feedback from employees post-enrollment to identify areas for improvement. As a business owner you should review your budget allocations and negotiate with providers if needed to offer competitive and comprehensive benefits. Proper planning and communication during open enrollment can enhance employee satisfaction, improve benefits utilization, and ensure compliance with legal requirements.

Open enrollment is a crucial time for employees to review and update their benefits for the upcoming year. To make the most of this period, it’s important to consider several key factors.

WHAT ARE YOUR NEEDS?

Evaluate your current healthcare needs—are your medical, dental, or vision plans still suitable? Review your provider networks, coverage options, and costs. Next, assess your financial situation; consider premiums, deductibles, copayments, and out-of-pocket maximums to choose plans that balance coverage with affordability.

WHAT ARE YOUR LOVED ONES NEEDS?

Examine your dependents’ needs, such as whether their coverage has changed or if new plans offer better benefits.

Don’t forget to review your retirement savings options, like 401(k) contributions, and any supplemental insurance policies available. It’s also wise to compare flexible spending accounts (FSAs) or health savings accounts (HSAs) to maximize tax benefits.

BE INFORMED

Take the time to read all plan materials carefully and ask questions if needed. Making informed decisions during open enrollment ensures you select benefits that best support your health, financial stability, and long-term goals.

Jeff knows that flextime can be a valuable benefit for his employees, but he isn’t sure how to implement a flextime program.

Trying to balance work and life demands can be hard for employees. A traditional workweek schedule doesn’t offer the flexibility that all employees need. Allowing employees to work flexible schedules is an inexpensive way to help them find their work/life balance.

Flextime is any schedule that doesn’t follow the standard workweek model. A flextime workweek could consist of four 10-hour days or of hours set by the employee that include the business’s defined peak work hours. Schedules can essentially be whatever both Jeff and his employees agree upon.

For the flextime program to work successfully, Jeff will have to watch schedules carefully to ensure that key people will be available during critical work hours. He also should ensure that there is sufficient supervision and coordination between departments within his business. And safety and security issues will need to be reexamined and policies changed as necessary before flextime can be implemented.

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Consider tightening up the following three communication areas to make sure your open enrollment is a success.

First, make sure to get the word out about the value of your benefit offerings regularly. Benefits can comprise 20% to 40% of an employee’s total compensation, so sharing this information is important to help your company attract and retain the best and brightest.

Second, communicate through channels most likely to reach your employees throughout open enrollment. This means via smartphones and apps for younger workers and print and in-person presentations for an older workforce.

Third, make sure you communicate simply in a language your employees understand. Eliminate jargon to increase understanding. As important, give employees easy-to-reach resources should they have questions.

As summer turns to fall, employers across the country are getting ready to present their annual open enrollment options for employee benefits. As an employee, whether you’re a newbie or an experienced hand at choosing employee benefits, it is crucial to do your homework before making your selections.

WEIGH YOUR CHOICES

Health and other benefit options can change from one year to the next, even when providers haven’t. Health insurance plans regularly change their premiums, deductibles and other out-of-pocket costs, and employers could pass increases on to employees. Plans add and subtract network health providers, and may do the same with peripheral benefits such as chiropractic care and acupuncture.

You’ll also want to examine any health savings plans offered, including the Health Savings Account (HSA) if you have a high-deductible health plan. HSA contributions are deducted pretax, and potential earnings and qualified withdrawals are tax-free. In 2025, contribution limits will increase to $4,300 for self-only coverage and $8,550 for family coverage.

AND THERE’S MORE

Disability income (DI) insurance may also be an important coverage for younger employees, who are much more likely to become disabled than to die at their age. This insurance protects what is many employees’ largest asset — their ability to earn a living.

While health insurance is the primary “want” of most employees, other benefits may play an important role in your financial and risk planning. Employer-sponsored life insurance — typically of the term variety — can provide a good foundation of insurance to help protect loved ones. Because it is group life insurance, it typically won’t need underwriting — an important consideration for employees with preexisting conditions.

Life insurance, DI and other benefits may also be tax-advantaged, reducing taxable income and, ultimately, taxes. These are a few of what can be many benefit offerings.

Discuss your choices with your financial and tax professionals.

The Baby Boomers, Generation X, millennials, and Generation Z, who make up most employers’ workforce, have different situations and benefit needs. That’s why increasing numbers of employers are looking beyond a one-size-fits-all plan to multi-generational benefit plans.

KNOW YOUR DEMOGRAPHICS

The first step in moving your company’s benefit package toward a multi-generational offering is to know your workforce demographics and identify
what the different generations have in common and what their differences are.

The University of North Carolina Kenan-Flagner Business School Guide to Leading the Multi-Generational Workforce identified these age-arcing values: success for the companies; a culture that encourages leaders to lead by example, be accessible, serve as a coach or mentor, challenge employees, and hold them accountable; to enable success in their careers; recognition of different life stages; and expectation of new and unanticipated challenges ahead. Specific to benefits, a Forbes Advisor survey found that Gen Z, Gen X, and baby boomers all prioritize flexible work options, paid time off, and parental leave.

COMMUNICATION AND FEEDBACK

Tailor communications. Baby boomers, for example, value job security and loyalty to their employers. Gen Xers prioritize work-life balance and flexibility. Make all communication clear and easy to understand, and send through multiple channels. Gen X, millennials, and Gen Z have grown up in a digital age of instant information. They prefer short, straightforward messages. Solicit feedback throughout the year and act on it. And measure benefits use over time and adjust your program accordingly.

RECOGNITION AND TEAMWORK

Motivate employees with incentives that matter to them. To create effective reward programs, consider what inspires (or turns off) certain generations or individuals. Create programs that encourage generations to work together and to share knowledge. Let them know that sharing their knowledge is vital to the success of your organization. For more direction, review your benefits program regularly with your financial professional.