Open enrollment communications are pivotal to a successful open enrollment process. Good communications are also a strategic opportunity to boost FICA savings for your company.
Most companies do a one-time information blast to their employees about their options, resulting in low participation rates. Despite good intentions, many companies see less than 20% participation in their Flexible Spending Accounts (FSA) or Health Savings Accounts (HSA).
Navia analyzed FSA and HSA open enrollment communications across its 10,000+ clients to bring you a deep dive into how to increase your benefit participation. The 2024 Open Enrollment Communications Report teaches you how to calculate your FICA savings and gives you specific actions you can do to boost enrollment. Here’s an overview of what you find in the report:
Table of Contents
1. Understanding Company Enrollment Savings
2. Carryover: Enhancing the Value Proposition
3. The Critical Role of Open Enrollment Communications
4. Crafting an Actionable Open Enrollment Communications Strategy
5. Proven Techniques to Drive Enrollment
6. Partnering with Your Benefits Administrator for Success
7. Conclusion
8. FAQs
Understanding Company Enrollment Savings
Before we discuss the mechanics of a successful open enrollment strategy, it’s crucial to quantify the possible financial savings. The question is, how much can your company save by optimizing the enrollment process?
Many employers fail to realize that open enrollment is not just a cost-center but can be a source of substantial FICA tax savings. By increasing HSA or FSA participation, even by a mere 11%, companies can see considerable savings that bolster the bottom line.
Depending on the average contribution amount, an 11% increase in FSA enrollment for a company with 1000 participants could be as much as $26,928 in additional payroll tax savings!
Use the provided tool below to calculate your potential FICA savings. Your FICA savings calculation can help drive your open enrollment communications strategy with a quantifiable goal in sight.
Carryover: Enhancing the Value Proposition
Your benefits package is only as good as its perceived value, and ease of use by the employees. Carryover options for FSAs and convenient access to funds make these plans much more appealing. Highlighting these “easy use” features in your communications can significantly impact participation rates, ultimately saving your organization money and providing greater value to your workforce.
The Critical Role of Open Enrollment Communications
An effective education plan is the backbone of successful open enrollment communications. MetLife’s 2023 survey revealed that a staggering 62% of employees desired more help in understanding their benefits. Furthermore, half stated that a better grasp of their benefits would boost their loyalty to the employer. These striking statistics underscore the necessity of a well-articulated education strategy.
Over the last three years, Navia has discovered consistent trends that point to which open enrollment communications activities work best. Some activities see an average 16% annual increase in FSA and HSA participation. Year-over-year these gains turn into significant FICA savings. We cover exactly which activities see the best results further below.
Crafting an Actionable Open Enrollment Strategy
Laying the groundwork begins with assembling an inclusive and proactive open enrollment education plan. Engage your workforce with an initial survey to understand their knowledge gaps and preferences. Set enrollment goals, establish a budget, and design a campaign theme that resonates. Identify the education and enrollment tools provided by your Benefits Administrator and build upon them. Schedule communications for optimal impact and use end-of-enrollment surveys to capture feedback and learn for future cycles. Download our 2024 Open Enrollment Communications report for a more detailed outline of how-to setup an effective communications strategy.
Proven Techniques to Drive Enrollment Engagement
Navia has three full years of data closely tracking the effectiveness of its open enrollment communications program. A consistent trend is starting to emerge with only a 1-2% deviation in effectiveness year-over-year. This consistency supports our conclusion that companies who participate in one of the following communications activities will see a noticeable increase in participation.
Navia sees an average 11-16% annual increase in FSA and HSA participation when employees participate in a benefits education webinar or receive our three-part educational email campaign.
Webinars see an average 16% increase, and the email campaign sees an average 11% increase.
Companies who do nothing see an average 5% increase. Those who host a traditional, in-person benefit fair—with no educational component—only see a 6% increase.
Education webinars and email campaigns have the biggest impact on boosting enrollment!
To further support our findings, Navia surveyed more than 500K employees about how they prefer to receive information about their benefits. Email and webinars are the clear winners by far. Check out the results:
Companies are seeing success with these activities across all industries and sizes. Here are a few real-life success stories to inspire your next open enrollment period:
Partnering with Your Benefits Administrator for Success
Your benefits administrator can be your most potent ally. Navia offers an array of support such as the Navia Benefits Academy, which equips employers with educational resources, custom webinars, email campaigns, and year-round services to support best-in-class open enrollment communications.
Conclusion
By leveraging the open enrollment communications strategies outlined in our guide, HR professionals and benefit managers can turn the tide towards higher enrollment rates, increased FICA savings, and happier and more loyal employees.
Remember, the key to successful open enrollment communications is to educate, engage, and empower. Implement these practices, measure your results, and continually refine for better outcomes. Your employees—and your financial department—will thank you.
FAQs
1. What is open enrollment?
Open enrollment is a designated period during which employees can enroll in or make changes to their health insurance and other benefit plans. It typically occurs once a year and is the only time employees can make these changes without experiencing a qualifying life event, such as marriage or the birth of a child.
2. How can optimizing open enrollment communications save my company money?
Optimizing open enrollment communications can lead to increased participation in Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). Higher participation rates in these accounts can result in substantial FICA tax savings for your company. Even a 10% increase in participation can significantly bolster your bottom line.
3. What are the benefits of offering carryover options for FSAs?
Carryover options for FSAs allow employees to transfer a portion of their unused funds to the next plan year. This feature enhances the perceived value and usability of FSAs, encouraging higher participation rates. Increased participation can lead to cost savings for the organization and greater value for employees.
4. Why is employee education important for successful open enrollment?
Employee education is crucial because it helps employees understand their benefits, leading to more informed decision-making. A well-articulated education strategy can improve participation rates and employee satisfaction.
5. What should be included in an actionable open enrollment strategy?
An actionable open enrollment strategy should include:
- An initial survey to understand employee knowledge gaps and preferences
- Clear enrollment goals and a budget
- A campaign theme that resonates with employees
- Identification of tools and resources provided by your Benefits Administrator
- A well-planned communication schedule
- End-of-enrollment surveys for feedback and future improvement
6. What techniques can drive enrollment engagement?
Effective techniques to drive enrollment engagement include:
- Detailed guides that clearly explain benefit options
- Engaging videos and webinars to elucidate complex information
- Tailored materials that address individual employee needs
- Digital resources that are easily accessible and simple to digest
7. How can partnering with a benefits administrator enhance open enrollment success?
Partnering with a benefits administrator, such as Navia, provides access to valuable resources like the Navia Benefits Academy, custom webinars, and year-round services. These resources can augment your communication efforts, ensuring clarity and accuracy in messaging. Working closely with your benefits provider can streamline the enrollment process and improve overall outcomes.
