Worksite Marketing

The Keys to Successful Voluntary Enrollment
by Cindy Bryant

Getting employees to sign on the bottom line is harder than it used to be, but following a few simple principles can make sure they do so and in larger numbers. Having effective education and enrollment drives participation. Effective benefits communication is also important to ensure employee satisfaction. For example, a 2005 Watson Wyatt study reveals that how well a company communicates the value of its health benefits can do more to retain top-performing employees than the actual richness of the benefits themselves.

In the past, benefits were typically static and totally paid for by the employer. The CEO, H.R. director, or other employer representative used to make almost all benefit decisions. But, as medical costs continue to surge, employers have turned to the voluntary market to provide robust benefits without breaking the bank. Voluntary benefits have seen unprecedented growth while other benefit markets have sagged. In fact, voluntary worksite sales totaled more than $4 billion in 2006, according to an Eastbridge Consulting study.

Employees have become part of the decision-making process while employers have created a mix of group and supplemental benefits offerings. Instead of simply consulting with the employer, the producer must understand the employees’ needs since the final decision often rests at the employee level.

Today’s employee must understand benefits messages while contending with the complexities of benefit designs. Helping employees during this process makes the job harder for insurance carriers, enrollment firms, employers, and brokers most of all.

This added responsibility makes the enrollment process more important than ever.
The ingredients of a successful enrollment are probably not much different than they always were. But, it’s helpful to review the basic components of a successful enrollment to determine if we’re meeting the needs of the employer and employee.
Regardless of the enrollment structure, four basic principles are critical to success. Using these principles in each stage ensures that the enrollment process is comprehensive, eliminates gaps in your strategy, and boosts employee confidence and enrollment:

1. Commitment

An enrollment is doomed without customer commitment. Take the time to develop an enrollment strategy that meets employees’ needs. For example, working for a manufacturing plant that operates 24/7 is quite different than it is working for a large legal firm.

Make sure that you and your clients understand how the new benefit would fit into the company’s benefit program. Educate, not just HR reps, but also the company executives on the value of the benefits being offered. When they understand the value, they will be more committed to sharing information with employees. Employees look to their corporate leaders for cues about purchasing benefits.
Offer to educate employees about the value of the company’s benefit program and how the new offering fits in. Employees may not know that their benefits cost their employer thousands of dollars each year and they may not know how much the same benefits would cost if they had to purchase them on their own. As employers experience double-digit increases in medical costs, it’s important to communicate to employees that, while they are being asked to contribute, their employer’s portion is going up as well.

Watch out for warning signs that an employer is trying to make the enrollment process too easy. For example, if the employer’s idea of a solid communication strategy is to send one mass e-mail to employees the day before enrollers arrive, now is the time to discuss the need for a more robust strategy that includes in-person meetings. Take time to understand what is behind the objections so you can fully address concerns.

2. Communication

A strong communication plan should be set in stone and agreed upon by all parties.
Any confusion that employers may have about the process should be ironed out before dissatisfaction sets in.
Don’t assume that employees understand basic insurance concepts. There are employees in every industry and salary range who don’t understand their benefit plans. Simplify communications whenever possible and don’t overload employees with extraneous information.

If all employees have access to the Internet and e-mail, it’s appropriate to distribute some information electronically -- like sending a link to a benefits Website. But that approach won’t work if electronic access isn’t available to everyone. Use e-mail to support other communication methods, but not alone. Mass e-mails and other one-time communications don’t add up to a comprehensive communication plan and taking the easy way out often leads to low participation rates. Communications should be plentiful, clear, and concise. Help personalize the benefits through group meetings or one-on-one employee sessions.

Employees should have enough time to make buying decisions. Unum conducted focus groups with benefits managers and employees and found that many employees say they don’t have enough time to absorb information about their benefits before having to decide whether to buy. Access to an insurance agent at the worksite can help employees feel comfortable before signing on the bottom line. The focus groups revealed that it’s not enough to give employees brochures and invite them to large presentations. They want to learn in small groups where they feel comfortable asking questions or they want to sit down with an agent.

3. Coordination

Someone has to coordinate all of the moving parts to ensure the enrollment process goes smoothly. Although the mechanics of coordination aren’t typically a broker’s responsibility, it’s important to get a commitment from a trustworthy person to oversee the process from start to finish.

Avoid getting pushed into a timeline that doesn’t allow you to implement a solid enrollment strategy. Depending on the complexity, it can take up to 12 weeks to prepare for a robust enrollment. It can be done faster, but cutting corners often hurts participation in the long run.

Consistency is the key. One reason to have employers buy into a coordinated enrollment strategy is for every employee to get consistent messages about benefits. This can be even more important when employees work in several locations or speak different languages. Having someone responsible for delivering messages and materials on a consistent basis adds up to more satisfied employees.

Go beyond meeting surface expectations. It’s may be a relief to know that brochures were delivered to the company on time, for example. But where they ever distributed to employees? Don’t assume that a piece of the enrollment puzzle is complete until you know it has reached its final destination. This helps ensure that there will be educated, ready-to-buy employees when enrollment day arrives.
Always have back-up systems ready. Do your enrollers keep paper forms on hand in case laptops crash? Keep an open line of communication with customers. Refining expectations as new issues are identified and addressed is important to keeping your client in the loop and satisfied.

4. Ownership

Brokers aren’t typically accountable for every step in the enrollment process, but they are accountable to their clients. So, it’s important to investigate vendors closely to be sure that they are worthy of the trust you and your clients place in them. You need to ensure that the vendor can execute the enrollment flawlessly. You will have a dissatisfied client on your hands if the enrollment is not executed to the client’s expectations.

Keeping an eye on employee needs as you define an enrollment strategy can make the difference between a so-so and a stellar turnout. The key to success is simple: commit, communicate, coordinate, and take ownership. Higher participation not only translates into higher premiums; but can also give you a better chance at selling the employer another voluntary benefit and securing a client for the long term. q
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Cindy Bryant is regional enrollment manager for Unum and is based in San Diego. She can be reached at csbryant@unum.com.