For business owners, open enrollment can feel overwhelming and time consuming. The goal for organizations should be to provide the best benefits for employees, while prioritizing the financial health of the company. By focusing on cost management, compliance, and employee well-being, companies can navigate the intricacies of benefits enrollment with confidence.
Cost Management for Business Sustainability
Balancing costs while providing affordable benefits is a primary concern for business owners. Businesses are projecting a 10% increase in health care costs for 2026, according to the International Foundation of Employee Benefit Plans. With the cost of health care continuing to rise, employers must develop strategies to find a balance. Many employers will be utilizing cost-sharing, raising premiums to shift costs onto employees. Employers also are seeking plan design initiatives such as high-deductible plans to reduce costs. Open enrollment is an opportunity to be transparent about the cost-sharing structure, explaining how contributions are determined. Transparency promotes trust and underscores the value of the benefits they receive.
While these solutions may be beneficial in the short term, businesses must assess vendors to determine if they provide adequate service while managing costs. PEOs like Lever1 have access to proprietary plans, enabling small businesses to access high level benefits, often at lower rates. Lever1 also handles the administration, empowering you to spend more time focusing on your core business. By using providers that offer both great service and a variety of options, employers are able to maximize the value of their benefit offerings.
Regulatory Compliance
Navigating the intricacies of regulations, including the Affordable Care Act (ACA), is vital to organizations. In 2026, the ACA affordability percentage will increase to 9.96%. Employer’s lowest-premium health plan must satisfy this updated affordability standard to remain in compliance. Staying up to date with changing healthcare regulations is crucial to avoid costly penalties.
Customizing Benefits for Employee Retention
Retaining talent continues to be a pressing issue for employers; nearly 90% of organizations are concerned about employee retention. One of the top retention strategies is offering personalized benefits. According to HUB International, almost 75% of employees say they would be more likely to stay in their current role if offered benefits that are customized to their personal needs. Personalized benefits may include financial wellness tools or quality-of-life benefits, such as pet insurance. Offering personalized benefits can reduce financial stress on employees, improving productivity, engagement, and retention.
Supporting Retirement Planning:
Empowering employees to make informed decisions about their retirement planning during open enrollment is a strategic long-term investment in your team. According to the EBRI, 7 out of 10 employees are not confident that they will have enough savings for retirement. Offering resources and encouragement regarding retirement planning is critical. Providing educational tools and access to retirement savings options, such as a 401(k) plan, can support your employees’ futures and promote financial well-being.
Open enrollment is an opportunity to find efficient solutions to improve both employee wellness and your organization overall. By effectively managing costs, ensuring compliance, and prioritizing employee satisfaction, businesses can complete open enrollment with success. For assistance in optimizing your open enrollment process, reach out to our experts at info@lever1.com. We’re here to help your business thrive, not just during open enrollment, but all year long.
Cheryl Daily | Brokerage Director
As Brokerage Director, Cheryl brings over 20 years of experience to her role. Cheryl is a licensed insurance producer and works one-on-one with our clients and prospects to ensure they receive first class customer service and education regarding their benefit options. Her hands-on approach to benefits is an added benefit to small businesses looking to grow their organization.