Key Employer Strategies for a Successful Open Enrollment Season

As the fall approaches, so too does the annual open enrollment season for employee benefits—the period during which employees have the opportunity to review and adjust their benefits plans for the upcoming year. These plans typically include health insurance, retirement funds, paid time off (PTO), and other perks like flexible savings accounts (FSAs).

In this article, we’ll explore some strategies for getting a head start on open enrollment and setting your employees—and your company—up for success.

What is Open Enrollment?

Open enrollment is a time an organization designates for its workers to review and, if desired, adjust their benefits plans. While there are no set parameters for the open enrollment period, the US Health Insurance Marketplace runs theirs from November 1 to January 15, so most employers align their schedule with these dates. This also ensures employees have sufficient time to review their options and select new plans.

Your Obligations as an Employer

In the US, the Employee Retirement Income Security Act (ERISA) requires that employers regularly update their workforce about their benefits options. Those that fail to inform their employees about open enrollment could incur a penalty.

Additionally, if an employee misses open enrollment, they won’t be able to make any changes to their benefits until the following year unless they experience a Qualifying Life Event such as:

• A change in marital status.
• Having or adopting a child.
• The death of an immediate family member.
• Moving to a new ZIP code.
• Receiving US citizenship.
• Turning 26 and losing family coverage.

Effective Open Enrollment is a Vital Element of a Sound Recruitment and Retention Strategy

Timely and effective communication about employee benefits during open enrollment season isn’t just important for compliance reasons. It’s also a way to attract and retain top talent in a highly competitive job market.

By preparing early, developing a suite of attractive and flexible benefits offerings, and proactively communicating them, you will:

• Send a signal to existing employees that they’re valued.
• Convince top performers who may be considering seeking employment elsewhere to stay with your company.

Equally important, you’ll likely catch the eye of job seekers. When people plan their next career move, one of the primary things they look for in a prospective employer is its benefits package. A robust benefits package helps attract talent to your business, while poor or limited benefits offerings may deter candidates from accepting an offer.

All content provided on Payactiv.com/financial-learning/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.

All content provided on Payactiv.com/financial-learning/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.