"We value our employees. It is for that reason, that we are not making any plan design changes or rate increases to your benefits package this year." This is a statement that many companies would not dare to announce during Open Enrollment - let alone a decision that would be on the table at renewal. But what better way to get your employees attention than to send a message that you stopped to rethink your benefits strategy.

Let's face it; employees have become quite numb to the annual cost shifting tactics used by many benefits professionals. In fact, many employees cite poor communication, a feeling of no control over increases, and questionable employer commitment as feedback to their Open Enrollment experience. How do you overcome this negative employee perception when you used your benefits package as a value proposition during their candidacy? Addressing these three areas in your benefits strategy could satisfy your employees and your bottom line.

Commitment: Define your strategy by redeveloping your benefits philosophy and then communicate it frequently. Be sure to avoid fluff but don’t be so rigid where changing course would require you to address an angry mob of disgruntled employees at the next OE meeting. In addition, transparency in the actual renewal process goes a long way in allowing employees to see the philosophy in action while also reinforcing your commitment to their benefits as a token of appreciation for their service.

Your philosophy should address some of the following topics.

• Where benefits fit in your total compensation philosophy/company culture;
• The responsibilities of the employer/employee in maintaining a comprehensive benefits package;
• Contribution strategy;
• Renewal increase threshold (or the percent of increase that your company can tolerate before considering to make tweaks to plan design);
• Define your benchmarks when using terms like “competitive” or “comprehensive”’;
• Vendor selection process.

Control: You can’t control costs alone. Employees want to know how they can help keep their payroll and out-of-pocket plan expenses down. So, engage them in the process.

• Explain the cost drivers and give actionable steps that each employee can take to reduce exposure. Use metrics to provide meaningful feedback.
• Incent them to become better, more educated consumers who use the plan effectively, ask the right questions, and proactively manage their health.
• Form a wellness or healthcare committee that allows employees to be involved in the renewal process and plan targeted wellness and educational activities throughout the year.
• Give employees choice in their healthcare options that align with your benefits philosophy. Teach them how to select a plan that meet their needs rather than just jumping on the plan designed for the risk adverse.

Communication: It’s no secret, communication will be critical to the success of your new benefits strategy. They’re your “captive” audience for 8-12 hours per day. Find creative ways to communicate with them outside of Open Enrollment.

• Use your quarterly all-staff meetings as a platform to discuss healthcare. It is, after all, a major part of your overhead expenses. Define two to three metrics that you will track over the course of a year and communicate how they compare between the target goal of the current year and prior years. Celebrate when goals are accomplished.
• E-mail a monthly tip that will help employees (and the company) save money. Generics vs brand name, urgent care vs ER, in-network vs out-of-network, centers of excellence just to name a few. Many times your medical plan provider will have these tips in their monthly newsletter.
• Have your medical insurance provider come onsite quarterly or semi annually to help employees with claims issues and discuss related topics like how to resolve claims issues. They can also demo some of their web based decision support tools and drive participation to the carrier’s site for other self help topics.
• Use Open Enrollment as an opportunity to recap the events of the year and how they contributed (or not) to the renewal rates. Then lay the groundwork for the upcoming year while reinforcing the benefits philosophy – what are the goals, the supporting programs and the expectations.