Four things employers should know for open enrollment season

RADNOR, Pa. (BUSINESS WIRE), October 18, 2022 - Employees are changing the way they approach open enrollment this year — and many are looking to their employers for benefits that can provide financial security in today’s economic environment. According to new research from Lincoln Financial Group, 45% of employees surveyed expect inflation will impact their benefits decisions this year.

Employees are looking for stability and protection — for their family, their finances and their health — with more than 85% of those surveyed indicating they would like to better understand what they can do to protect against the impact of inflation.² It’s important for employers to communicate how the benefits offered at the workplace can protect against the unexpected and ease financial stress during times of volatility.

“As employee benefit needs change, employers interested in attracting and retaining talent must adapt to meet the current expectations of the workforce,” said James Reid, executive vice president, president of Workplace Solutions at Lincoln Financial Group. “Offering a well-rounded benefits package sends a clear and deliberate message that you care about the financial security and health of your people — leading to positive outcomes for your employees and for your business.”

Below are four ways to help employees make the most of their benefits:

1. Life changes — make sure the benefits you offer are changing too. As personal situations and individual benefit needs change from year to year, employer offerings and resources must also adapt with the workforce. It’s no surprise that in recent years, as the market fluctuated and the pandemic ensued, Americans took a closer look at their finances and questioned their financial readiness in an emergency situation. Amid this growing concern, interest in supplemental coverage offered by employers increased: 89% of consumers reported being interested in Critical Illness insurance, and 86% are interested in Hospital Indemnity and Accident insurance.³ Now is the time for employers to consider reviewing their policies and bolstering their offerings with protections that support the needs of today’s workforce.
2. Education is essential. Although interest in benefits and protection is high, choosing the right benefits during open enrollment can be a complicated process — 54% of those surveyed say they would enroll in more benefits at work if they could understand them better.⁴ It’s important for employers to offer simple, relevant and personalized information that helps employees make informed decisions and achieve their long-term objectives. Providing information through a variety of digital and mobile channels can help alleviate some of this frustration. Cost clarity can also help — the top concern about benefits enrollment is understanding their cost and value.⁵ Employers can partner with their carriers to offer tools and resources that can help employees make these selections and understand the impact to their paycheck, including videos and digital calculators that can help estimate life insurance and disability coverage needs.
3. Benefits get employees through the door, and keep them there. Competition for talent is fierce, and workplace benefits can play an important role in recruitment and retention. In the past year, 67% of those surveyed said they considered a career change.⁶ And while offering a benefits package has always been seen as a significant tool to help attract talent, more and more employees are looking for additional protections and options from their employer. In fact, 77% of employees surveyed see insurance benefits other than health insurance as a must have or very important when deciding to take a new job.⁷ Offering supplemental benefits — including dental, vision, life, disability and retirement options — can help attract employees looking for a career change, and also help retain them. Close to 70% of those surveyed said paid leave benefits contributed to their job satisfaction and loyalty to their current employer.⁸
4. Focus on financial wellness. In our current economic environment, many employees may be feeling heightened levels of financial stress and uncertainty, which can have a negative impact on their health and performance at work. Offering access to financial wellness tools can help ease some of this stress by providing employees with an accurate picture of their holistic financial situation. Research shows that nearly all who have used financial wellness resources report a positive impact, with 42% of those surveyed saying the impact has been significant.⁹ When employees improve their financial wellness, they’re able to better manage everyday expenses, ultimately reducing stress levels and allowing them the confidence to plan ahead for the future.

For more tips, resources and benefits information, visit www.lfg.com/wellnessatwork.