What Every Company Should Know about Open Enrollment
What Every Company Should Know about Open Enrollment

What Every Company Should Know about Open Enrollment

Open enrollment comes around every year and can cause a lot of unnecessary stress and headaches for you and your HR staff. According to Paycor, 42% of employers still have their employees enroll in benefits manually. So, before you nail down your 2020 benefits plans, HR leaders take note—the open enrollment process doesn’t have to be stressful. With the right technology and expertise, you can save a great deal of time and trouble.

When is 2020 open enrollment?

Open enrollment is a period during the year, usually one or two months, when companies allow their employees to make changes or additions to their elected fringe benefits such as health insurance, unemployment benefits or retirement plans.

Perhaps that includes investing in a new benefits administration solution or reorganizing your plans to suit a multigenerational workforce. Getting organized ahead of time will help streamline open enrollment. Keep in mind that some states have their own enrollment platforms for health insurance, so be sure to review your state requirements.

Be prepared for open enrollment:

  • Obtain renewal numbers and rates from your carriers for the coming plan year
  • Analyze costs and decide to switch carriers or not
  • Communicate with employees about any changes this year (especially pertaining to the Affordable Care Act) and prepare them for the open enrollment process

Once open enrollment begins, you should:

  • Collect all the relevant information from your employees
  • Update payroll with the new deductions
  • Notify your carriers of changes and new enrollments

employee-selecting-2019-benefits

How can I overcome the challenges?

  • Go paperless. At many companies, employees fill out a form with their benefit elections and send it to HR to be recorded and filed. That’s a lot of time and paper. Employers build their plans online, and their employees sign in to make their elections at home, in the office, or anywhere. Paycor's Perform HR and benefits solutions allow employees to view benefit plan summaries and other documents, receive updates on uncompleted enrollment tasks and review how their elections will affect their compensation.

  • Eliminate unnecessary data entry. Once employees have made all of their elections, HR has to input all of the updated information into their payroll system, which poses the risk of human error. Since Paycor has a single system of record, which means no double-entry, we save you time and eliminate the chance of error.

  • Access reporting and analytics. It’s impossible to make smart decisions about benefits without data. Paycor’s Perform HR allows employers to access status reports to see the progress of the current open enrollment, compare coverage costs from different years and gauge how employee election trends from year to year. With the right HR reports, companies are able to make informed decisions about their benefit coverage and costs.

  • Enjoy seamless connectivity to carriers. After all the benefit election information is updated in your system, there is still the matter of notifying carriers. Paycor’s Carrier Connect pushes all enrollments directly to the carriers for a small additional fee. Instead of having to update benefits in multiple places, you only have to do it once.

  • Communicate. We surveyed hundreds of HR leaders and found that 61% of employees are confused about the benefits offered at their organizations. To alleviate this confusion, employers most hold ‘benefit conversations’ throughout the year, not just during open enrollment. The topic of benefits is often complicated and very dry, so having a well-developed ‘benefits marketing program’ can help ensure your employees fully understand their options.

Since there are currently five generations participating in the workforce, one blanketed communication method won’t cover everyone. Consider these additional ways to reach your entire workforce:

  • Company intranet
  • Newsletters
  • Posters and banners
  • Paycheck inserts
  • Webinars

The open enrollment process can be challenging, but not if you let Paycor’s Perform HR simplify it for you. Watch this 2-minute video to see how Paycor can help make open enrollment painless.

Want to learn more? Contact us to speak to one of our consultants today.

More to Discover

How to Build Irresistible Benefits Packages for Employees

How to Build Irresistible Benefits Packages for Employees

Employee Benefits Packages: Foundational to Workplace Satisfaction While a competitive salary is an essential part of attracting top talent, in today’s hot hiring market, the employee benefits package is just as important.More than ever before, employees are being offered robust and interesting job benefits as organizations strive to keep pace with the shifting culture of work today. Historically, offering health insurance and a 401k were the expected aspects of a benefits package. Today, employees are being offered benefits packages that include generous vacation policies and flexible working arrangements.In this article, we’ll share the most important aspects of an employee benefits package. You’ll learn what to offer in order to fully...

Is Unlimited PTO a Good Idea?

Is Unlimited PTO a Good Idea?

If you’re debating whether or not to offer unlimited paid time off to your workforce, there are a few pros and cons to keep in mind.For starters, it is becoming more prevalent. The number of jobs on Indeed that advertise unlimited PTO increased 178% between 2015 and 2019. But still, only 1%-2% of companies in the U.S. offer unlimited vacation and most of those companies are in the tech industry (ex. Hubspot, Netflix, Roku), according to Society for Human Resource Management. Why Do Companies Offer Unlimited PTO? Offering unlimited vacation is an innovative tactic for recruiting talent. Afterall, who hasn’t daydreamed of taking off work whenever the mood suits? In fact, the 2019 MetLife Employee Benefit Trends Survey revealed that 72% of...

How to Conduct Exit Interviews

How to Conduct Exit Interviews

Fully Capitalize on This Underutilized HR Practice The Often-Overlooked Exit Interview In the world of human resources, the focus is always on a strong start. From finding that perfect candidate to conducting a spot-on interview, it’s all about the beginning. However, strong HR practices are not just about the first phase or hiring.Inevitably employees quit, which kicks off the process of wrapping things up and conducting an exit interview. For many companies, the employee exit interview is an afterthought.However, the exit interview is a powerful tool to consistently evolve and optimize company performance and culture. The exit interview is a rare opportunity to get honest and raw feedback about an organization’s effectiveness in many...

Top Signs of Employee Burnout

Top Signs of Employee Burnout

Employee burnout is more than just dealing with an overwhelming project or working overtime for a few days in a row. It’s a condition in which an employee feels chronic stress, energy depletion and cynicism at work and it can have a number of negative side effects.In fact, employee burnout is so prevalent in the workplace, the World Health Organization officially added “burnout” to its International Classification of Diseases in 2019. Researchers at Harvard Business School estimate employee burnout costs between $125 billion and $190 billion every year in healthcare costs.A key warning sign of burnout is low engagement, which ultimately means low performance and poor business results. It’s not that those employees don’t care, it’s that...