3 Ways to Help Your Employees Navigate Open Enrollment

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It’s open enrollment season. Read on for ways to make it less stressful and more successful for your employees. 

As a small business owner, there are different steps you can take to retain talent. One, of course, is to raise salaries every year and reward top performers with merit-based increases. And giving out bonuses wouldn’t hurt, either. Nothing says “please stay on board” like a lump sum of money in an employee’s checking account.

Offering a comprehensive set of benefits could also be essential to retaining talent. And now’s the time when you’re likely either kicking off your open enrollment period or are already in the middle of it.

Open enrollment is a good thing in theory. It gives employees the opportunity to choose different types of benefits. But it can also be stressful for employees — especially those choosing benefits for the first time. Here’s how you can help mitigate that.

1. Encourage your staff to consider total costs when choosing a health insurance plan

If your company offers more than one health insurance plan, then it’s important to present a big picture view of what each option entails. Your employees may be inclined to choose the health plan with the lowest premiums. In doing so, they might sign up for large deductibles that are difficult for them to cover.

When presenting your health plan options, try to show comparisons so your employees can get a sense of their total costs. Compare the cost of one health plan’s annual premium and deductible to another so they get a better sense of what they might be signing up for.

2. Explain the benefits of signing up for your company’s 401(k)

Only 34% of small businesses offer employees a workplace retirement savings plan, says Fidelity. If your company makes a 401(k) available to employees, they should know what a perk that is.

It’s also a good idea to review the benefits of contributing to a 401(k) so your employees are more motivated to sign up. These include shielding income from taxes (in the case of contributing to a traditional 401(k) plan), enjoying tax-advantaged growth on investments, and having an automated means of building a retirement nest egg. If you’re able to match worker contributions to some degree, even better.

3. Discuss voluntary benefits

You may be in a position to offer your employees the chance to buy life insurance or pet insurance. If so, explain the financial benefits of having these protections.

But also, explain what happens if your employees leave their job. Will they lose their coverage? Some life insurance policies bought through an employer are portable, while some aren’t — meaning, they go away when an employee separates from their employer. Make sure all of the details are clear so your employees end up with the coverage they need.

Open enrollment can be tough for employees to navigate without guidance. But if you take the time to really explain all of the options and benefits you’re offering, you’ll put your staff in a better position to make the right choices. And that could benefit you tremendously.

Workers who are less stressed about financial matters may be better able to focus on their jobs. So while you may want to help your employees through open enrollment for their sake, the reality is that offering added guidance could actually help your company’s bank account balance as well.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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