Employee communication has always been a challenging part of an adviser's job. Not only do many employees lack an understanding of employee benefits and the role they play in an individual's overall financial strategy, they may be reluctant to learn more about their benefits if communication is coupled with bad news.
Bad news may come in the form of the implementation of a consumer-driven health plan, higher co-pays on traditional health insurance, a change in health insurance carriers or a confusing 401(k) enrollment. Even if it saves the employees money, it can be seen as an inconvenience. A confusing, stressful or angry enrollment meeting is not the ideal place to educate or attempt to sell a mix of voluntary products.
More advisers are revolting against the concept of annual enrollment, saying the best way to enroll employees in voluntary is by running a separate enrollment meeting. Dual enrollments for core and voluntary make sense for many. Separate enrollment meetings - outside of the regular enrollment cycle - can also be an effective tool to help communicate a new product, like a CDHP or a new line of voluntary offerings that the adviser would like to highlight.
There are times when breaking off voluntary enrollment may not be wise, however. If it's voluntary dental or vision, many advisers will still keep it with the core enrollment because it would follow well with health.
Multiple enrollments appeal to advisers for several reasons. First, it enhances their offering to their clients and secures their role as a proactive partner in the relationship. Second, increased education and communication should yield greater participation and more revenue for the adviser.
HR professional and benefits columnist Richard Quinn says employers have an incentive to break the strangle hold of annual enrollments, too.
"Communicate when there is no apparent reason to do so and do it often. Break the cycle of here comes the communications, here comes the bad news,'" Quinn says.
He recommends HR professionals send regular emails outside of enrollment that give employees tips on how to best use their benefits. Tell people what's coming and give facts so people can see how well they are doing compared to averages, say in their 401(k) plan, Quinn advises. That's where advisers can also lend a hand. Advisers should take an active role - even if HR doesn't see it as an issue - by stepping up these communications as well as workplace visits for enrollment and education sessions.
Sometimes there is resistance from HR because they see moving anything outside of the traditional open enrollment time as opening up Pandora's Box.
"HR has shown some pushback to the dual enrollment. But for employers that have many voluntary plans available, it gets too confusing. When people get hit with rate increases and there's pushback with the core plan, then they're not willing to put money into the voluntary plans," says Bud Martin, president of Martin Financial Services.
While benefit managers may interpret more visits from advisers as more work for them, Fernando Lopez, President of San Francisco-based Benelopez says this practice actually eases the workload for HR. Extra visits means he is extra visible and accessible to the client's HR staff and other employees, says Lopez. This way the adviser can help field some questions gradually throughout the year, rather than having HR face an onslaught of questions once a year.
Also, if there will be benefit changes announced at an enrollment meeting, constant communication is a good way to tell them in advance, so they're not quite so surprised and upset. Taking the heat and fielding difficult questions and concerns from employees proves the adviser is willing to work hard for his customers. Increased awareness of his firm and the adviser's involvement should only help his sales.
Whether employers realize it or not, employees value voluntary benefits. An Aon Consulting survey found that 80% of workers say voluntary benefits are either valuable or extremely valuable. Just 67% of employers measure the success of voluntary programs, however. There is a disconnect. Advisers can capitalize on voluntary interest by getting communications out to employees and making it a prized offering.
"It's commendable if you're able to get to the employees of your clients on a quarterly basis, I mean it's commendable to get that level of response from your clients," says Frank Tosto, VP of employee benefits for Hilb, Rogal & Hobbs in Stamford, Conn. Tosto says, he finds multiple enrollments helpful, but an equally important factor in successful employee communications is that employers make the enrollment meetings a priority.
"I recommend mandatory enrollment meetings," Tosto says. Giving someone the option of not showing up to an STD seminar won't work. "You've got to be a pretty high-end person to even think about short-term disability," he says.
If employers really want to convey the value of their benefits offerings and advisers want to uphold their role as benefit educators, they both need to make enrollment a priority. That may mean offering multiple enrollment opportunities throughout the year.
