The Downside of Online-Only Self-Enrollments for Employee Benefits
- November 26, 2024
- Posted by: admin
- Category: Enrollment
Introduction
The open enrollment period is one of the most significant times of the year for employees and employers alike. It’s the window where employees make crucial decisions about their health insurance, retirement plans, and supplemental benefits. Yet, despite the importance of these decisions, a growing number of companies are turning to online-only self-enrollments or selfenrollment via url.
While these systems promise convenience and cost savings, they often leave employees unsupported, confused, and frustrated. The lack of in-person guidance can lead to errors, missed opportunities, and even a devaluation of the entire benefits package. For businesses, the fallout includes lower participation rates, increased turnover, and strained relationships with employees.
This article explores the pitfalls of online-only self-enrollments, the reasons behind their growing popularity, and practical strategies to ensure a better enrollment experience for all.
Table of Contents
What Are Online-Only Self-Enrollments?
Online-only self-enrollment systems are digital platforms where employees independently select their benefits without direct assistance from HR professionals or brokers. These platforms typically offer:
- Plan Comparison Tools: Allowing employees to view options side-by-side.
- Cost Calculators: Estimating out-of-pocket expenses based on selected plans.
- FAQs and Knowledge Bases: Answering generic questions about coverage.
- Automated Workflows: Guiding users through the enrollment process step by step.
While these tools aim to simplify enrollment, they often fail to address the unique needs of employees. For example, someone managing a chronic health condition or expecting a child may need specific advice on which plan best meets their circumstances—advice that an automated system simply cannot provide.
Why Are Online-Only Self-Enrollments Gaining Popularity?
The Pandemic Shift to Digital
During the COVID-19 pandemic, digital tools became essential for maintaining operations while adhering to social distancing protocols. Employers and brokers quickly adopted online-only platforms for benefits enrollment, and many have continued to rely on these systems even after returning to normal operations.
Brokerage Staffing Challenges
Open enrollment season—especially during the fourth quarter—creates a surge in demand for brokers. Faced with limited staffing and tight deadlines, many brokerages prioritize their largest clients, leaving smaller businesses to navigate enrollment using self-service systems.
Cost-Effectiveness
Online platforms reduce administrative workloads, travel costs, and the need for in-person meetings. For brokers and employers, this can be an appealing way to cut expenses, even if it compromises employee satisfaction.
The Illusion of Convenience
Employers often perceive online systems as a convenient solution, but this convenience is one-sided. While it streamlines backend processes, it leaves employees without the critical support they need to make informed decisions.
The Real Costs of Online-Only Self-Enrollments
Employee Confusion and Errors
Benefits are inherently complex, and employees often lack the expertise to fully understand their options. Without guidance, they may select plans that are ill-suited to their needs or miss out on valuable supplemental benefits.
Devalued Benefits Packages
When employees struggle to navigate their options, they are less likely to appreciate or value the benefits being offered. This perception can lead to lower participation rates and reduced engagement.
Increased Turnover
Dissatisfaction with the enrollment process often spills over into dissatisfaction with the company itself. Employees who feel unsupported may begin exploring opportunities with competitors who provide more personalized benefits experiences.
Added Strain on HR and Managers
Without adequate broker involvement, HR teams and managers frequently step in to help employees navigate the enrollment process. This diverts their focus from critical operational tasks and increases their workload during an already busy time of year.
The Impact on Non-Tech-Savvy Employees
Not all employees are comfortable with technology. For non-tech-savvy individuals, online-only enrollment platforms can feel intimidating and inaccessible. These employees face unique challenges, including:
Navigating Digital Barriers
Employees who lack familiarity with online platforms may struggle to log in, navigate menus, or understand the information presented. This can lead to frustration, errors, or even missed enrollment deadlines.
Reliance on Managers
In the absence of direct support from brokers or HR professionals, employees often turn to their managers for help. While well-intentioned, this approach is far from ideal:
- Managers Lack Expertise: Most managers are not benefits experts and may struggle to provide accurate advice.
- Operational Disruptions: Time spent assisting with enrollment takes managers away from running the business or supporting their teams.
- Employee-Manager Strain: Constantly asking for help can strain the employee-manager relationship, especially if the manager feels overwhelmed.
For example, a retail store manager may find themselves spending hours assisting employees with benefits questions during the busy holiday shopping season—a time when their focus should be on customer service and sales performance.
Case Study: A Tale of Two Companies
Company A: Online-Only Enrollment
A 200-employee manufacturing company implemented an online-only enrollment system to streamline their benefits process. Employees received a link to a digital portal and were expected to complete their enrollment independently. The results were less than ideal:
- High Error Rates: 25% of employees accidentally selected out-of-network plans.
- Frustration and Confusion: Many employees reported feeling overwhelmed and unsupported.
- Missed Opportunities: Enrollment in wellness programs and supplemental benefits dropped significantly.
Company B: Hybrid Approach
A similarly sized company in the hospitality industry opted for a hybrid enrollment model. They supplemented their online system with in-person sessions led by a brokerage team. The outcomes were vastly different:
- Increased Participation: 90% of employees enrolled in voluntary benefits, up from 60% the previous year.
- Improved Satisfaction: Employee surveys showed a 95% satisfaction rate with the enrollment process.
- Reduced Errors: Fewer than 5% of employees required corrections to their benefits selections.
This case underscores the importance of providing hands-on support during the enrollment process.
How to Improve the Enrollment Experience
Adopt a Hybrid Model
Combining online tools with in-person support ensures employees have access to both the convenience of digital platforms and the expertise of knowledgeable brokers. This approach benefits employees of all comfort levels with technology.
Invest in Employee Education
Providing clear, concise, and accessible educational materials is essential. Examples include:
- Workshops and Webinars: Live or recorded sessions that break down benefits options.
- Infographics and FAQs: Visual aids that simplify complex topics like deductibles and copays.
- Scenario-Based Guides: Real-life examples that show how different plans apply to common situations.
Partner With Hands-On Brokers
Employers should seek brokers who prioritize engagement and employee education. A proactive broker can offer:
- On-Site Assistance: Helping employees navigate their options in real-time.
- Tailored Advice: Providing one-on-one consultations to address unique needs.
- Ongoing Support: Being available year-round for questions and updates.
Why In-Person Support Matters
Fostering Trust and Confidence
Employees are more likely to feel confident in their benefits decisions when they have access to live guidance. This trust extends to their perception of the company as a whole.
Reducing Managerial Burden
When brokers take on the responsibility of assisting employees, managers can focus on their core responsibilities rather than acting as de facto benefits counselors.
Better Outcomes for All
In-person support leads to fewer errors, higher participation rates, and improved satisfaction—benefiting employees, employers, and brokers alike.
Medcore Brokerage: Redefining Benefits Enrollment
At Medcore Brokerage, we understand the challenges employees and employers face during open enrollment. That’s why we prioritize a hands-on approach that blends technology with personalized care.
Our services include:
- On-Site Consultations: Helping employees navigate their options with confidence.
- Interactive Education: Workshops, webinars, and resources tailored to your workforce.
- Year-Round Accessibility: Providing support long after the enrollment period ends.
By putting people first, Medcore Brokerage helps businesses maximize the value of their benefits packages while fostering employee satisfaction and loyalty.
FAQs
What does self-enrollment mean?
Online-only self-enrollments are digital platforms where employees independently choose benefits, often without live guidance.
Why are online-only self-enrollments problematic?
They leave employees unsupported, leading to confusion, errors, and reduced participation in voluntary benefits.
How can employers improve the enrollment process?
Employers can adopt a hybrid approach that combines online tools with in-person guidance from brokers or HR professionals.
What challenges do non-tech-savvy employees face?
These employees often struggle with digital platforms and rely on managers for help, which can disrupt business operations.
Why should businesses consider Medcore Brokerage?
Medcore Brokerage offers hands-on, personalized support to enhance employee confidence and ensure successful enrollment outcomes.
Can technology replace brokers entirely?
No, while technology can simplify the process, it cannot replicate the empathy, expertise, and personalized advice that brokers provide.
Want more information on how to select a medical insurance plan check out the video here
