How Inflation Will Impact Open Enrollment

3 minute read

The 2023 open enrollment may be more challenging than usual. With many employees feeling the financial strain of inflation, it could impact the choices they make when it comes to benefits. According to The Hartford’s Future of Benefits Pulse Survey, 40% of employees reported that they will cut back on the benefits they select during open enrollment in 2023.

Due to inflation-related financial stress, 70% of workers want their employers to help them optimize their benefits selections, including retirement savings, health care, health savings accounts, and voluntary benefits. And Voya research also said that employers will spend more time reviewing their benefits selections to consider which ones matter the most and how to optimize the money they spend on those offerings.

Inflation has placed employee benefits at the forefront of many employers’ attention and retention strategies. Employers can take steps now to help their employees better understand their benefits options and make more informed decisions. Here are some ways that employers can assist their employees this open enrollment season:

• Communicate early about benefits. By communicating early, especially the time leading up to open enrollment, employees can be better prepared to make benefits sections. Many employees enroll in benefits as soon as open enrollment begins, so being fully informed ahead of time can help them make the best selections.
• Use multiple communication channels. Employers can use a variety of communication channels to inform employees about benefits. Channels may include emails, webinars, in-person meetings, social meeting, videos, interactive tools, and more.
• Use clear language and personalized messaging. Instead of simply listing what benefits are being offered, employers can use clear language and personalized messaging to demonstrate how insurance products relate to employees’ lifestyles.
• Highlight the services that come with coverage. Letting employees know what services accompany their benefits selections can help them make better decisions to protect themselves. These may include services like an employee assistance program or financial or legal advice benefits.

Employers have the opportunity to simplify and personalize their open enrollment this year to help employees determine how best to allocate their potentially limited resources strained by inflation. By giving more time for employees to review benefits offerings, employers can help them optimize their resources and make the best benefits selections for themselves and their families during this period of financial difficulty. Download the bulletin for more details.