AI is becoming fully integrated into every aspect of business operations, and its capabilities are continually expanding. It has already transformed HR by increasing efficiency and enabling more effective people decisions, and the employee benefits experience is no exception.
In this competitive labor market, employee benefits often factor into where employees choose to work. Many are even willing to leave their jobs for better benefits. Therefore, your benefits program is a key opportunity to attract and retain employees more effectively, and AI can help make it happen.
Why AI is a Must-Have for Benefits Open Enrollment
While AI may have once been considered a nice-to-have in HR, it has now become essential for businesses striving for excellence in talent management. It not only improves decision-making and efficiency, but it delivers the personalized support today’s employees expect.
By partnering with a PEO skilled in using a range of AI tools in HR, you can improve open enrollment and achieve the following outcomes:
- More Satisfying Benefit Choices: Ill-informed benefit decisions can leave employees uneasy, with 53% regretting their most recent open enrollment choices, according to an Equitable study. However, using AI-powered decision support tools can help employees better understand their options, leading to more confident and regret-free benefit selections.
- Lower Benefit Costs: Better decision-making by employees often leads to more cost-effective benefit elections. An Aflac study found that employees who understood their benefits were much less likely to think they overpaid for health insurance than those who didn’t understand their benefits.
- Improved Employee Experience: Using AI tools to improve employee education during open enrollment can positively impact how employees view their employer and work experience. Sixty-two percent of employees in one study said that effective benefits education would give them a greater sense of stability at work, and 50% said it would increase their company loyalty.
5 Ways AI Transforms the Benefits Open Enrollment Experience
Given its numerous benefits, AI can be a total game-changer during your next open enrollment period. By incorporating AI tools and partnering with a PEO, you can streamline the process and enhance employee experience. Here’s what you can achieve:
1. Personalized Benefit Recommendations
AI-powered decision support tools help employees determine which benefit options are best suited to their budget and coverage preferences. By analyzing employee data such as claims history, demographics, preferred providers, and anticipated medical procedures, these tools help employees evaluate their options and make more informed decisions rather than just choosing the option with the lowest premium or deductible. Businesses looking to implement these tools may want to consult a PEO for expertise and assistance.
2. Proactive and Frequent Communication
Many employers already use explainer videos, newsletters, and benefit information sessions to communicate important open enrollment information to employees. However, the timing of these communications is just as important as the content itself.
One survey found that 93% of employees want benefits communications before open enrollment, and more than half want updates multiple times throughout the year. AI tools can facilitate this by delivering personalized reminders that are timely and relevant to each employee’s needs. Since many employees dedicate less than one hour to benefits open enrollment activities, these frequent reminders can capture their attention and encourage them to spend more time reviewing their options. A PEO can also help manage these communications, ensuring compliance and effectiveness.
3. Engaging Employee Education
Open enrollment can be stressful and confusing for many employees, as most don’t know enough benefits terminology or how certain benefits can help them or their dependents. In fact, a recent MetLife study found that almost half of employees (45%) don’t fully understand their benefits package. Another study found that most employees couldn’t define common benefits terms like deductible, co-insurance, and co-pay.
AI-powered education tools, such as chatbots and virtual assistants, boost employee benefits education and make it easier to understand benefits materials. Chatbots provide 24/7 support for answering employee benefits questions, while virtual assistants can help by reviewing benefit plan documents and summarizing them in simpler terms.
4. Predictive Analytics Insights
AI-powered analytics tools enable a more comprehensive review of your benefits program by analyzing large datasets and uncovering actionable insights. For instance, by collecting data such as employee claims histories, benefit elections, and survey feedback, these tools can identify trends and make plan design recommendations. In collaboration with your PEO, you can review the recommendations and craft an affordable benefits program that supports employees’ overall well-being.
5. A More Efficient Open Enrollment Process
AI tools using Robotic Process Automation (RPA) can streamline the most complex processes and make them more efficient. For example, they can verify employee benefits eligibility, prepare employee census reports for carriers, and handle other repetitive tasks previously done manually. This capability simplifies open enrollment, cuts down on errors, and makes it possible to offer employees a Fortune-500 benefits experience regardless of your company’s size.
Upgrade Employee Benefits with AI and PEO Support
AI has the potential to revolutionize open enrollment and enhance the way employees interact with their benefits throughout the year. From personalized recommendations to proactive benefits communications, AI tools deliver the insights and support employees need to make better informed and more cost-effective benefits decisions.
Partnering with a PEO can help you implement these AI-driven solutions effectively, ensuring your employees experience a seamless and engaging open enrollment process each year. To discover how Aspen HR’s PEO benefits solutions can support your business, contact us and speak to a member of our team.
