By Tom Perrotti, ADP
Benefits make up one of the largest parts of an employee’s total compensation. Nevertheless, when it comes to annual enrollment, many employers and employees dread what can be a time consuming and complex process.
 |
Some of this anxiety over open enrollment may be due to the fact that the Affordable Care Act (ACA) radically changed the employee benefits landscape, giving way to potentially increased healthcare costs, a broader range of healthcare options, and a more complicated benefits administration process.
According to the latest ADP Midsized Business Owners Study, three-quarters of midsized business owners and senior executives said increased costs from ACA were their biggest healthcare concern, and three of five said that benefits administration has become more complex as a result of ACA.
Despite their angst, employers realize the importance of offering a solid benefits package to help them win the war for talent. About 70% of midsized business owners surveyed said that benefits are critical in retaining and attracting quality employees. Further, a second study by ADP TotalSource revealed about 65% of employees said the benefits program their employer offers helped attract them to work there and is a contributing factor to why they stay.
Knowing how valuable benefits are to their workforce, it’s up to HR leaders to actively engage their employees in the benefits selection process so they make appropriate healthcare decisions.
Here are a few strategies to consider.