Preparing for Benefits Renewal

As renewal season approaches, consider taking these steps to improve your outcome.

What Are Employee Benefits? Your employee benefits package is a vital tool in not only attracting and retaining top talent, but also in fostering high levels of engagement and productivity. In addition to pay, employee benefits could include health insurance, dental and vision coverage, life insurance, retirement plans, paid time off, and attractive perks such as educational assistance and remote work options.

While your benefits package comes down to your employees' needs and your budget, there are a number of other factors to consider, so it's never too early to prepare for the annual renewal process.

STEPS FOR A BETTER OUTCOME

Start Early. Begin several months in advance of the renewal date to allow enough time to gather important documentation, assess needs, determine a budget, evaluate workforce demographics, and gather feedback. Starting early also gives you time to review options, make changes, and negotiate better rates. 

Review Your Current Plan. As enrollment approaches, it’s time to take a fresh look at your benefits package to determine how it’s working for your business and your employees. Analyze your current plan performance through data on claims, utilization, and satisfaction levels. Find out if your insurance carrier plans to make changes, such as costs, coverage, and services covered, or add new benefit options. What is the cost of making changes or renewing your employee health plan? What are the costs of switching to a new plan? Review the renewal rate and compare it with other plans to ensure you get the best value.

Assess Your Current Carrier. Is your current insurance provider still a good fit? Consider the level of support the insurance provider offers, including a dedicated account manager who can help navigate your plan's features and benefits and any available resources or tools to help employees manage their healthcare costs.

Evaluate Current Benefits Trends. Is your benefits package competitive? Is recruiting and retaining top talent becoming more difficult? Is employee engagement on a decline? If so, the reason could be your benefits offerings. According to the 2024 MetLife Employee Benefits trend study, employees are 20% more productive when they feel cared for. Evaluate benchmarking data and current benefits trends to determine if there are areas that need improvement.

Conduct A Utilization Review & Gather Feedback. Before renewing, analyze how your employees are using your benefits. Over time, the demographics of your workforce and circumstances can change, requiring adjustments to your benefits program. A utilization review can tell you if your benefits align with the current needs of your workforce. Then, survey employees to understand what benefits they value most and areas needing improvement. Also, anticipate future needs by gathering feedback mid-year and after the open enrollment period ends. 

Develop A Rollout Strategy. Do your employees understand what you're offering? According to MetLife's Employee Benefit study, only 4 in 10 employees believe employers' benefits are easy to understand. Benefits can be complicated and overwhelming. When employees don’t understand the details of what you're offering, they are most likely to focus on cost and may end up with unexpected out-of-pocket expenses as a result. Develop a rollout strategy that includes simple and clear messaging. The easier it is for employees to understand their options, the more likely they are to make informed decisions about coverage.

Bring In Outside Experts. Leverage outside expertise to simplify the renewal process. Outsourcing to an IRS-certified PEO (Professional Employer Organization), like Propel HR, can help you to take advantage of being included in a larger buying pool to save money on top-rated health insurance plans at much lower rates and enterprise-level benefits packages similar to those only available to large corporations. 

▶️▶️READ MORE: Your HR Checklist for Q3 is Here!

THE COUNTDOWN TO RENEWAL IS HERE!

The renewal process doesn’t have to be complicated. By understanding all the factors that come into play, small businesses can ensure they provide their employees with the best possible benefits. If you need help finding the right options for your small business, give us a call at (800) 446-6567.

THE LATEST TRENDS IN EMPLOYEE BENEFITS 

If you're planning to renew or make changes to your employee benefits, watch our new Benefits Benchmark Report to learn more about the latest trends in employee benefits. Watch HERE.

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our website at www.propelhr.com.

PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your business may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated June 27, 2024)