You know the drill—the open enrollment package arrives, you go online to sign up for benefits, and your new insurance card shows up a few weeks later. Seems simple, right? A wave of the magical HR wand and everything is done. Sorry folks, but the “easy button” doesn’t exist for the HR and Benefits professional.
Of course, nothing in HR is ever that simple. As with the 7 Key Functions of HRM, benefits administration has multiple moving parts happening behind the scenes.
Facing the Renewal Shock
Humor me for a minute and let’s pretend you are the benefits person at your company. It’s 8:30 a.m. on June 4th. You’re in a conference room across from your insurance broker, who has just presented a renewal from your medical insurance company that includes a huge premium increase.
Your stomach drops as you scan the report. Large claims show costly treatments for terminal illnesses, and the premiums-to-claims ratio looks so poor that you almost agree with the increase. With an offer like this, you have no choice but to shop competitors. After enduring multiple in-person meetings with insurance salespeople, you finally push the renewal offer down to a level that your CFO won’t laugh out of his office.
This is just one example of the financial juggling HR faces, a challenge that reflects the broader Characteristics of HRM that Make All the Difference.
Balancing Costs and Employee Needs
It’s time to present the renewal to the Benefits Committee. You put together a concise presentation of the offers you received, plan changes which could help to soften the premium increase and your recommendation on the benefits package for the upcoming year.
The committee decides that the deductible should be increased and more cost sharing shifted towards employees this year. The company hasn’t been performing as it has historically and simply can’t afford a several thousand-dollar increase.
Rolling Out Open Enrollment Communications
Fast forward to late July—it’s time to start developing marketing and communication for this year’s open enrollment. You’ve posted updated benefits summaries on the intranet, created posters, drafted employee emails, and built open enrollment packets.
You’ve also coordinated with insurance representatives to hold meetings educating employees on the new benefit changes. On top of this, you’re consulting with a benefits attorney to make sure your company is compliant with PPACA (Healthcare Reform) updates going into effect.
Staying on top of regulations is no small task. It mirrors the kind of compliance expertise needed for HR certifications such as the SPHR and GPHR, where benefits law and policy knowledge play a huge role.
Testing Systems and Handling Snags
By mid-August, you’re loading the new rates into the payroll system and prepping the HRIS for open enrollment. Testing takes several weeks, and of course, you hit snags—coverage tiers aren’t working properly. Partnering with your payroll vendor, you eventually solve the issues, but valuable weeks are gone, and October is quickly approaching.
Open enrollment begins and ends a few weeks later. Along the way, you field complaints about premium increases, deductible hikes, and reduced FSA limits. But despite the challenges, the process wraps up smoothly enough.
Why HR Deserves Appreciation During Open Enrollment
So, the next time an open enrollment package lands on your desk or arrives in your mailbox, take a moment to thank your HR and Benefits professionals. The process may look simple from the outside, but it involves sleepless nights, tough financial negotiations, compliance checks, and countless hours of preparation.
Their work embodies the larger mission of HR management, as outlined in the Fundamental Functions of HRM—balancing employee well-being with organizational realities.
FAQs on Open Enrollment
Why is open enrollment so challenging for HR?
Because HR professionals must balance cost control, compliance, communication, and system testing all at once. Behind every “easy” enrollment package is months of preparation and problem-solving.
How can employees support HR during open enrollment?
Employees can help by reading all communication materials, attending information sessions, and asking questions early. This reduces errors and eases the administrative burden on HR.
