How to Drive Employee Participation

Many employees do not realize how much their employer contributes to their benefits package. According to the U.S Bureau of Labor Statistics, benefits account for 30.1% of total compensation in the private industry, yet low participation remains a widespread challenge for employers.

Without meeting carrier participation thresholds, employers risk losing access to group coverage altogether, making employee enrollment a vital part of the process. This article discusses how to maximize employee engagement during open enrollment and year-round.

Why Participation Rates Matter

Plan participation is the foundation of your benefits package. Without strong employee engagement, even the most well-designed plan falls short of its potential. The risks of low engagement include the following:

• Poor benefits comprehension—Industry data shows that a third of employees lack a clear understanding of their benefits, and low participation is often the first indicator. Investing in employee education is one of the most effective ways to close that gap and drive meaningful engagement.
• Possible loss of coverage access—Falling short on your participation numbers could lead to losing access to coverage entirely. This is especially likely during the implementation of new lines of coverage or a move to a new carrier.
• Limited market options—Most carriers require 50%-75% participation, making low participation a frequent disqualifying factor in the small group market. When a group falls short of those thresholds, underwriters may issue a “Declined to Quote,” meaning the insurer has determined the group does not meet the minimum requirements to be offered coverage. Increasing enrollment not only reduces that likelihood but also broadens access to carriers and funding options.
• Rate increases—Changes in census data or participation could trigger premium increases for everyone. Insurers may respond by applying a rate load, an added cost built into the overall premium when risk or participation falls outside of expected ranges.
• Adverse selection and high claims—Low participation creates a smaller insured pool, which often leads to adverse selection. When healthier employees opt out, those who do enroll tend to be higher utilizers of care, concentrating claims costs among a smaller group. Insurers view this imbalance as a greater risk, which can lead to significant premium increases at renewal, making it harder for employers to maintain competitive benefits over time.
• Decreased recruitment and retention—Employees look for a strong benefits package as part of their total compensation, and employers often leverage their offerings to recruit and retain top talent. Low enrollment can signal to prospective and current employees that the plan lacks value, undermining one of your most powerful recruiting tools and making it harder to compete for talent in a crowded market.

Ways to Boost Participation

Building strong plan participation starts with a clear engagement strategy. The following tips can help you drive enrollment and keep employees informed and involved throughout the year:

• Engage employees year-round. Participation doesn’t have to be an annual conversation. Keep benefits top of mind throughout the year by sending midyear reminders, prompting employees to review coverage after major life events, and tying benefits awareness into any existing wellness programs or company communications. Employees who are informed year-round are far more likely to engage meaningfully during open enrollment.
• Start early and set deadlines. Launch your enrollment campaign at least four to six weeks before the deadline. Give employees enough time to research options, ask questions and submit elections without feeling rushed. Send a firm deadline reminder.
• Simplify materials. Replace jargon-heavy plan documents with plain-language summaries, comparison charts and brief explainer videos. When employees understand their options, they’re more likely to complete enrollment.
• Communicate across multiple channels. Use all possible resources to communicate offerings and timelines. Don’t rely on a single email. Utilize your company intranet, team meetings, printed flyers, text alerts and managers to carry the message directly to their teams and ensure every employee is reached.
• Leverage management and HR teams as enrollment champions. Train frontline managers to reinforce enrollment messaging with their teams. One-on-one meetings can have a significant impact on enrollment. Employees are more likely to act when their direct supervisor follows up personally and answers basic questions in the moment.
• Offer flexible enrollment access. Provide extended enrollment windows with evening and weekend access to online portals and enrollment teams so that every employee has a convenient opportunity to participate regardless of their schedule.
• Track enrollment in real time. Monitor participation as it happens so you can identify and target those who haven’t enrolled with personalized outreach before the deadline passes.
• Follow up after enrollment. Set up a post-enrollment survey to gather employee feedback and identify gaps in communication or understanding. This insight is invaluable for refining your strategy in future enrollment periods.
• Taking Action
• Improving participation doesn’t require a complete overhaul. Small, consistent efforts made throughout the year can dramatically shift employee engagement and ensure your plan continues to deliver value for everyone it was designed to serve.
• Your broker or benefits advisor is your partner in this process. Reach out to discuss a participation strategy tailored to your workforce and plan design. 

Article Published By: Zywave, Inc.