Open Enrollment Is More Than Choosing Benefits
What Employers Need to Know About Planning, Communication & Compliance
For many employers, open enrollment can feel like a once-a-year administrative task:
✓ Send employees the benefits information.
✓ Open the enrollment window.
✓ Answer questions.
✓ Collect elections.
✓ Update payroll.
✓ Done.
But a successful open enrollment requires much more than simply asking employees to choose their benefits.
Open enrollment is an opportunity to review your benefits program, prepare your internal processes, communicate with employees, identify potential compliance concerns, and make sure your organization is ready to administer those benefits after enrollment ends.
And when the process isn't well planned..................
Employees become confused.
HR gets overwhelmed.
Deadlines get missed.
Payroll deductions may be incorrect.
Benefit elections may not match carrier records.
And what should have been a straightforward process becomes a year-round administrative headache.
That's why employers should think about open enrollment as a process - not an event.
What Is Open Enrollment?
Open enrollment is the designated period when eligible employees can review, enroll in, or make changes to certain employer-sponsored benefit elections for the upcoming plan year, subject to the terms of the applicable plans.
Depending on the employer's benefit offerings, employees may be reviewing options such as medical insurance, dental insurance, vision insurance, flexible spending accounts, health savings account elections where applicable, life and disability benefits, and other voluntary benefits.
For employees, this is an opportunity to evaluate whether their current elections still meet their needs.
For employers, it is an opportunity to make sure employees understand their options and that the systems behind those benefits are ready.
Why Employers Should Start Preparing Early
One of the biggest open enrollment mistakes employers can make is waiting until the enrollment window is about to open before beginning preparations.
There are several things that should happen before employees ever receive an enrollment email.
Employers may need to coordinate with their benefits broker, insurance carriers, HR team, HRIS or benefits system, payroll provider, and leadership.
Questions to Address Early
Are plan offerings changing?
Are employee contribution amounts changing?
Are eligibility rules changing?
Are there new benefits being introduced?
Are any benefits being discontinued?
Are plan documents and employee materials current?
Are enrollment systems configured correctly?
Are payroll deductions ready to be updated?
What information needs to be communicated to employees?
Who will answer employee questions?
Open enrollment shouldn't begin with employees. It should begin with employer preparation. |
Open Enrollment Is Also a Compliance Checkpoint
Benefits administration can involve a number of federal and state requirements depending on the employer, plan, workforce, and benefits offered.
Potential considerations may include requirements related to ERISA, HIPAA, COBRA, Affordable Care Act requirements where applicable, Section 125 cafeteria plans, required benefit notices and disclosures, and applicable state insurance and benefit requirements.
Not every requirement applies to every employer or benefit plan. Employers should work with their benefits broker, plan administrator, legal counsel, HR professional, or other qualified advisors to understand which requirements apply to their specific organization.
Open enrollment provides a natural opportunity to confirm that required documents, notices, processes, and employee communications are being handled appropriately.
HR TIP: Don't assume your broker, payroll provider, or HR system is handling every compliance responsibility. Clarify who is responsible for each part of the process. |
Communication Can Make or Break Open Enrollment
Employees shouldn't have to become benefits experts to understand what their employer is offering.
Benefits information can quickly become overwhelming: premiums, deductibles, copays, coinsurance, networks, HSAs, FSAs, voluntary benefits, coverage tiers, and deadlines.
When employees receive a large packet of information with little explanation, it's easy to see why questions start pouring into HR. Instead, create a communication plan.
Before Enrollment
When open enrollment will begin
When it will close
Whether action is required
What major changes employees should expect
Where enrollment will take place
Where employees can find additional information
During Enrollment
Benefits guides
Plan comparisons
FAQs
Educational sessions
Broker or carrier resources
Instructions for completing elections
A clear contact for questions
Before Enrollment Closes
Send reminders
Reinforce the deadline
Follow up on incomplete action where appropriate
Explain What Changed - Not Just What's Available
One of the first things employees want to know during open enrollment is: “What's different this year?”
Make that information easy to find. If applicable, highlight changes to employee premiums, deductibles, copays, plan options, provider networks, employer contributions, coverage levels, eligibility, new benefits, discontinued benefits, and enrollment procedures.
Clear communication can reduce confusion and help employees focus on the decisions they actually need to make.
Make It Easy for Employees to Compare Their Options
Providing employees with plan documents is important. Helping them understand those documents is equally important.
Consider providing a simple comparison showing key differences between available plans. The goal isn't to tell employees which plan they should select. It's to give them information they can use to make their own informed decision.
Compare | Plan A | Plan B |
Employee premium | $___ | $___ |
Deductible | $___ | $___ |
Primary care visit | ___ | ___ |
Specialist visit | ___ | ___ |
Out-of-pocket maximum | $___ | $___ |
HSA eligible | Yes/No | Yes/No |
Benefits Communication Is Part of the Employee Experience
Benefits may represent a significant investment for an employer. But employees can't appreciate benefits they don't understand.
Open enrollment is also an opportunity to remind employees about the total value of their benefits package.
Don't only communicate what employees are paying. Where appropriate, explain what the employer is contributing and highlight benefits employees may have forgotten about, such as employer-paid coverage, retirement contributions, Employee Assistance Programs, wellness benefits, disability coverage, life insurance, paid leave programs, and other employer-sponsored resources.
Employees may already have access to valuable benefits they aren't fully using simply because they don't know they're available.
Enrollment Isn't Finished When the Window Closes
The enrollment deadline may have passed, but benefits administration isn't over.
After enrollment closes, employers may still need to:
Review elections
Resolve incomplete or questionable enrollment information
Confirm carrier enrollment
Verify dependent information where applicable
Update payroll deductions
Confirm effective dates
Address discrepancies
Maintain appropriate records
Respond to employee questions
Prepare for the new plan year
A successful enrollment isn't simply one where employees submit elections on time. It's one where those elections are accurately implemented. |
Don't Forget Payroll
Benefits and payroll are closely connected.
If an employee elects coverage but the corresponding deduction isn't updated correctly, the problem can continue across multiple pay periods.
Before the new plan year begins, employers should have a process for comparing:
Employee Elections → Benefits System → Carrier Information → Payroll Deductions
Look for discrepancies before the first payroll of the new plan year whenever possible.
HR TIP: Don't wait for an employee to notice an incorrect deduction. Build verification into the process. |
Track Enrollment Progress
During open enrollment, employers should know where things stand.
Depending on the enrollment process, track who has completed enrollment, who still needs to take action, outstanding questions, enrollment discrepancies, required documentation, and follow-up items.
Then establish a process for following up before the deadline. This is especially important when employees must actively elect or waive coverage.
Create an Open Enrollment Checklist
Instead of managing open enrollment through scattered emails and memory, create a repeatable process.
Before Open Enrollment
Confirm plan offerings and rates
Review changes with your broker
Confirm applicable compliance requirements
Review employee eligibility information
Configure enrollment systems
Prepare employee communications
Create benefits guides and FAQs
Schedule employee education
During Open Enrollment
Launch employee communication
Conduct benefits education
Answer employee questions
Monitor enrollment completion
Send deadline reminders
Track unresolved issues
After Open Enrollment
Review elections
Confirm carrier enrollment
Update payroll deductions
Resolve discrepancies
Maintain applicable records
Confirm readiness for the new plan year
The best open enrollment process is one you don't have to reinvent every year. |
Open Enrollment Can Strengthen Your Benefits Strategy
Open enrollment isn't only about administration. It's also a chance to listen.
What questions did employees repeatedly ask?
Which benefits caused confusion?
Which benefits appear underused?
What feedback did employees provide?
Where did HR spend the most time troubleshooting?
Those insights can help employers evaluate their benefits communication and administration strategy for the following year.
Because offering benefits is only one part of the equation. Employees also need to understand, access, and use them.
Final Thoughts
Open enrollment is more than a benefits election window.
For employers, it's a coordinated HR process involving planning, communication, compliance, employee education, systems, payroll, and ongoing administration.
The organizations that handle it well don't wait until enrollment opens to start thinking about it.
They prepare early. They communicate clearly. They create repeatable processes. And they verify that what employees selected is what ultimately gets implemented.
That's how open enrollment becomes more than an annual administrative requirement. It becomes part of a stronger employee experience and a more effective HR operation.
Need Help Preparing for Open Enrollment?
Ahrise Consultant Group helps small businesses, nonprofits, and growing organizations strengthen the HR processes behind benefits administration. From open enrollment planning and employee communication to HR systems, payroll coordination, and benefits administration support, we help organizations create a smoother process for both employers and employees. Subscribe to the Ahrise Resource Shop for practical HR guides, checklists, templates, and resources designed to help your organization stay Confident. Compliant. And Covered |
This article is provided for general informational purposes and is not legal advice. Employment requirements may vary based on jurisdiction and individual circumstances.
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