Every fall, millions of employees treat open enrollment like a formality, clicking "next" until it's over. But those few rushed minutes can cost real money over the next 12 months. Choosing the wrong health plan, skipping available benefits, or defaulting to last year's elections can lead to thousands in unnecessary expenses and missed opportunities.
The good new? HR teams can help employees slow down, think strategically, and make decisions that actually fit their lives. Here are the three biggest open enrollment mistakes and how to prevent them.
Employees often assume what worked last year will work this year. But life changes (new health needs, growing families, or shifting financial goals) can make last yer's choices a poor fit for the current year.)
Encourage employees to revisit every decision. Provide easy-to-follow comparison tools that highlight cost changes, deductible differences, and employer contributions each year. Host short "what's new" sessions to make updates visible and relevant. A few minutes of review can save hundreds or more throughout the year.
Employees focus on premiums, not the full financial picture. They often overlook HSA and FSA advantages, forget to update life insurance coverage, or underestimate the real out-of-pocket costs tied to their plan choices.
Integrate financial wellness into open enrollment. Offer interactive tools and AI coaches that estimate total annual costs based on real usage patterns. Remind employees how HSAs grow tax-free, how dependent care FSAs offset childcare costs, and how the right coverage can support long-term savings goals. When employees understand the financial impact, they make smarter, more confident choices.
Many employees sign up for benefits they never use (like mental health support, financial coaching, or wellbeing stipends) simply because they don't understand their value. That's wasted money for both the employee and the employer.
Simplify communication and personalize it. Replace dense benefit guides with plain-language summaries and short videos showing how to access key benefits. Use segmentation by life stage, income level, or family size to make the message resonate. The goal is to help every employee see how benefits connect to their everyday life, not just their paycheck deductions.
Open enrollment shouldn't feel like a chore for employees. It's an annual chance for them to reset, plan, and invest in their own personal and financial wellbeing. When HR teams provide clear guidance, relatable education, and integrated financial wellness tools, employees make better choices and feel more confident year-round.
The best benefit isn't just the one employees choose to enroll in. It's the one they actually use well.
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