For most employers, open enrollment feels like a no-win situation. Costs go up. Employees worry about take-home pay. And then owners like yourself face tough decisions on whether to absorb increases or pass them on.
But here’s the truth: Open enrollment isn’t just about the benefits. It's about how you communicate them.
“Open enrollment isn’t just about the benefits, it’s about how you communicate them.” Paula Fulghum
The Real Cost of Poor Communication
When benefit costs rise, employers typically face two options:
- Absorb the cost, which may lead to smaller profit margins and fewer rewards like bonuses or raises.
- Share the cost, which can feel like you're taking something away from employees.
Either way, it can feel like you're the bad guy. But most of that perception comes from a lack of communication, not the decision itself.
Why Employees Don’t See the Full Picture
Many employees don’t realize the true value of the benefits they receive—or how much they actually cost the company.
Here’s an example:
- A typical medical premium might be $500/month per employee.
- A 15% increase equals $900 more per year—just for medical.
- Add dental, short-term disability (STD), and long-term disability (LTD), and the annual increase could easily exceed $1,000 per employee.
This is compounded every year, yet it often goes unmentioned.
If they don’t know, they can’t appreciate it.
And if they can’t appreciate it, they won’t value it.
What Most Employers Get Wrong
Too often, employers:
- Blame the insurance companies (understandable, but incomplete)
- Accept the cost without discussion
- Fail to explain the changes clearly to their team
Then a few months later, when someone asks for a raise, frustration boils over:
"Don’t they know how much I spend on benefits?"
No—they don’t. Because no one told them.
What to Do Instead: Communicate
Start by
bringing your team into the conversation:
- Be transparent about the increase in benefit costs.
- Show the math—explain what the raise
would have been if you passed the cost on.
- Meet individually when possible to explain the value of the benefits.
- Ask for feedback on which benefits matter most—and which ones don’t.
Questions to Ask Your Team
- If you owned this company, how would you handle annual benefit increases?
- Which benefits do you actually use and value?
- Are there perks we offer that no longer matter?
You might be surprised—many companies continue to offer outdated perks no one cares about.
What You
Can Do (Even If You Can’t Lower Premiums)
You may not be able to control rising insurance costs—but you
can control how you communicate about them:
- Engage in honest, consistent conversations with your team.
- Trust them to understand your position when given the full picture.
- Collaborate on benefit decisions that reflect what your team truly values.
When you treat open enrollment as a chance to educate—not just inform—you build trust and alignment.
Final Thought: Open Enrollment Is a Team Effort
Strong teams communicate, collaborate, and solve problems together.
You’re not in this alone. Use open enrollment as an opportunity—not a burden—to strengthen your team.
Communicate clearly. Listen actively. Lead transparently.
If you're navigating tough benefit decisions and want a sounding board or a second set of eyes, we're here to help. Whether it’s crafting the right message or rethinking your benefit strategy, you don’t have to go it alone.
