Why Employers Should Review Employee Benefits Well Ahead of Time
Managing a business is no small feat. With so much to keep track of, it’s easy for certain tasks to get pushed to the back burner. And let’s be honest, reviewing employee health care benefits often falls into this category. Hear us out though: Tackling this task early on can yield significant advantages. Barbra Chambers, Senior Client Executive here at Snellings Walters, dives deep into why it’s crucial for employers to review their employee health benefits program well ahead of the open enrollment (OE) period, and how you can do so with ease. Let’s scroll.
A Financial Head Start
One of the biggest advantages of reviewing employee benefits early is the financial foresight it provides. Imagine this: It’s August and you’re already aware of your expected costs for the next plan year (woah, what?). This allows you to strategically plan your budget without any last-minute scrambles. On the flip side, if you’re guessing your budget until November, you’re not only adding stress but also risking financial missteps. Having a clear picture early on helps you allocate funds more efficiently and avoid unnecessary financial strain.
Broader Range of Medical Plan Options
When you’re pressed for time, making strategic decisions becomes a race against the clock. If your benefits renewal comes up and you’re not satisfied with it, you’ll have the flexibility to explore alternative plan options if you started the process early. This means you can thoroughly compare plans, negotiate better terms, add more value, and ultimately select the most suitable package for your employees. In contrast, a last-minute review limits your choices and forces you to settle for what’s available rather than what’s best.
Smooth Open Enrollment Process
Another critical aspect is the open enrollment period. If your renewal comes out in November, the benefits enrollment process often spills into the holiday season, making it a chaotic time for everyone involved. By starting early, you can complete OE meetings in October, giving yourself and your employees a stress-free holiday season. Early preparation ensures that OE doesn’t feel like an annual fire drill, but rather a well-orchestrated event.
Challenges of Last-Minute Reviews
The longer you wait, the less options you have. To put it in perspective, delaying your benefits review is similar to shopping for a wedding dress or suit with only a few days to spare. Your choices are limited and you might end up with something that’s not quite the right fit. The same goes for employee benefits. Waiting too long narrows your options, potentially leading to a suboptimal program that could cost you and your employees more money. Time is a luxury that allows you to make informed decisions, ensuring that the chosen healthcare plans align with the needs of your business and your employees.
Integrating Early Review into Strategic Planning
Early review of employee benefits isn’t just about ticking a box; it’s about strategic planning. What are your employees saying they need? Do they require richer benefits, more expansive health coverage, lower premiums, or more health savings account (HSA) money? What about a flexible spending account (FSA)? And how does life insurance fit in? Addressing these questions early on helps build a stronger company culture and improves retention. When you have the luxury of time, you can explore the best benefit plan options, potentially spending less on insurance and reallocating those funds to boost employee satisfaction. Instead of funneling more money to insurance companies, imagine investing more in salaries or programs that directly improve the lives of your employees.
The Role of Producers in Early Reviews
Producers like those at Snellings Walters play a pivotal role in assisting employers with early reviews. They bring expertise, market knowledge, and negotiation skills to the table, ensuring you get the best possible deal on your health insurance plans. Their guidance is invaluable in navigating the complexities of the benefits landscape, helping you make decisions that align with your company’s goals and values. For example, producers at Snellings Walters have a reputation of helping their clients save an average of 24% from the original year—and yes, the clients who are proactive in reaching out early give themselves an advantage.
Effective Communication of Benefits Changes
Clear and effective communication is key when rolling out changes to your health benefits program. Early preparation allows for comprehensive annual open enrollment meetings where employees can ask questions and thoroughly understand their new benefit options. Rushed communication often leaves employees confused and defensive, especially if they notice premium increases without proper context. By starting early, you can better communicate the generosity of their employer, highlight cost-saving measures, and ensure that employees feel valued and informed.
Reviewing employee benefits early is not just a good practice—it’s a strategic imperative for the wellness of your company. It provides financial clarity, a wider range of options for employees and their family members, a smoother OE process, and ultimately leads to higher employee satisfaction and retention. By embracing an early review, you’re not just planning for the next year; you’re investing in the long-term success and well-being of your business and your employees. So don’t wait. Start your review early and reap the benefits of a well-prepared, proactive approach. As always, we’re here to guide you through it when you’re ready.