Zillennials Say HR Needs to Help More During Open Enrollment

As open enrollment season gets underway, even more data reveals that HR may want to increase education around benefits for their employees.

A new survey out this week from technology firm Justworks found that so-called Zillennials (those aged 18-43) are confused and overwhelmed about their benefits choices—and are looking for more help from their HR departments.

More than half of Zillennials who participate in open enrollment (51%) admitted to having aimlessly chosen a health insurance plan in the past because they didn’t understand the complicated terms and definitions—double the amount of Gen X or older adults who said the same (25%), according to Justworks/The Harris Poll’s survey of 4,167 U.S. adults ages 18 and older, including 2,389 respondents who participate in open enrollment, conducted in September.       

Meanwhile, 46% of workers who participate in open enrollment said they regret certain decisions they’ve made about their health insurance plan during open enrollment, compared to just under a quarter of those aged Gen X or older (24%).

Significantly, the survey found, the vast majority of Zillennials (81%) said HR departments should provide employees with more help during the open enrollment process.

The Justworks survey findings are no outlier: Various other research has found that employees are confused and overwhelmed by their benefits choices and desire better communication and assistance from their employers.

We rounded up additional news from SHRM on open enrollment and benefits communication.

5 Things to Know About Open Enrollment This Year

Open enrollment season—a pivotal and busy time for organizations—is underway. From health care cost projections for 2025 to how well employees understand their benefits coverage, here’s a look at five things to know about open enrollment season this fall.

(SHRM)

Employers’ Biggest Open Enrollment Task: Convincing Employees to Care

Despite the importance of open enrollment, most employees don’t spend much time reviewing forms for health insurance and other benefits.

Nearly 7 in 10 benefits-eligible employees (67%) spend just 30 minutes or less reviewing their options during open enrollment, while 42% spend 20 minutes or less, according to a 2023 Voya Financial survey. The overwhelming majority of employees (roughly 90%) choose the same options as they did the previous year, a report by insurance firm Aflac found.

Choosing benefits is “extremely overwhelming for people,” said Christin Kuretich, vice president of supplemental products at Voya, a New York City-based financial and insurance firm. “It’s not something that people generally want to think about or take the time to focus on.”

But there are things employers can do to improve employee interest and understanding about benefits.

(SHRM)

Looking to Tighten Budgets, Employees Spending Less on Benefits

Recent research reveals what some industry experts call a troublesome trend—and one that serves as further evidence that employers would be wise to step up their benefits education and communication.

The new monthly median amount that consumers will spend on benefits in 2024—excluding retirement savings—is $120, down $30 from the previous two years, according to LIMRA, an insurance industry trade association based in Windsor, Conn.

“These findings are unfortunate, since employees’ willingness to spend is going down at the same time benefit costs are going up,” said Kimberly Landry, associate research director for workplace benefits research at LIMRA. “It’s not a good combination.”

Major drivers for the decline in employees’ benefit spend include inflation and tighter household budgets.

(SHRM)

How to Have a Successful Open Enrollment

Although a number of employers are bringing workers back into offices full-time, many employees are still remote, resulting in a spread-out workforce that might make enrollment complicated for HR and benefits leaders.

In short? It’s even more important for employers to get open enrollment right.

So, how can employers ensure they make open enrollment a success? Lots of strategies come into play, from old and new communication techniques to promoting available voluntary benefits and talking with employees about rising health care costs. SHRM spoke to a number of experts for their insights.

(SHRM)

Efforts to Communicate Benefits Are ‘Underwhelming,’ Report Finds

Improving communication to employees about their workplace benefits is a top strategic priority for benefits professionals, but many of them are falling short in their efforts.

That’s one of the main findings from Aon’s new 2024 Global Benefits Trends Study, which was conducted from March to April and received 288 responses from participants in 31 countries.

The survey of global benefits professionals found that although most (73%) said that improving communications to employees and boosting their perception of their benefits is a top priority for them, only 38% said that ensuring benefits are highly valued by employees is a key objective for global benefits teams, and just 33% of businesses include guidelines on benefits communication in their global framework.

“Current efforts are underwhelming, uncoordinated, and ineffective,” Aon said in its report.

(SHRM)

Employees Seek More Benefits Communications, Personalization

The majority of employees say they are looking for more help and guidance from their employer on benefits offerings, according to data from insurance provider MetLife. It’s a sentiment that’s especially felt by Generation Z workers, who are on track to become the largest generation in the workforce.

MetLife’s 2023 Employee Benefit Trends Study found that 54% of all employees said they wish they had personalized benefit recommendations, while half would feel more cared for if their employer improved its benefits communications.

“While employers continue to make significant strides in improving their benefits strategies year after year, there is still much work to be done to help close the gap between benefits education and utilization among employees,” said Jamie Madden, senior vice president of workforce engagement and benefits connectivity at MetLife.

(SHRM)