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Are today's working Americans financially stable?

Posted on: August 15, 2023

Part 2: Crafting a meaningful enrollment experience

In my last blog post, I discussed how sentiments of financial well-being varied based on three segments of working Americans. If you didn’t have the opportunity to read it, or if you missed it in your inbox, you could find it here. You might even want a refresher because I will be referring to employees who are either Financially Challenged, Financially Stable, or Financially Healthy in this post.

I’d like to pick up where we left off with crafting more meaningful messages this enrollment season—and I have five recommendations. Some may seem self-evident, but I implore you to look at each one with fresh eyes. Think about how voluntary benefits enhance your client’s package, sets you apart from the competition, and what type of messaging speaks to feelings of financial confidence for your client’s employees—which in turn helps elevate job satisfaction and retention.

1. Make more of your awareness campaigns: Workers may need “triggers” as open enrollment approaches with reminders that include key call-to-action dates and accessible resources to learn more about products being offered. It’s the first step in driving interest and confidence in selecting what’s right for them and their family.
2. Be aware of price sensitivity: Not all products are made the same and products that have more resilience and endurance carry more financial well-being for the long term. They may cost more initially but they make a wise choice for individuals seeking comprehensive financial protection for today and tomorrow.
   If there are changes to benefits or premiums during the upcoming enrollment period, be clear and provide detailed information as to what has changed and why—but remember the adage, “price is only an issue in the absence of value.” A good example of this is MassMutual’s Group Whole Life Insurance. Promoting its three guarantees: the death benefit, increasing cash value, and level premiums, may be of greater significance to those who are price sensitive.
3. Opportunities for a consultative approach: For voluntary benefits that are 100% employee paid, additional hand holding may be required. Some people may need more personalized guidance and support throughout the enrollment decision-making process. They might find that talking with a financial professional would make them feel more confident with their decisions. Consider supporting your clients with in-person or virtual meetings where questions may be asked, or a dedicated hotline for a more personalized experience.
4. Longer open enrollment period: Considering the value voluntary benefits add to financial well-being, providing working Americans more time to make their selections or do additional research may help them feel more prepared in making their choices. Extending the open enrollment period offers numerous advantages. It may lead to better decision-making and understanding of the benefits, help accommodate life events, and encourages more time to evaluate voluntary benefits. In some cases, it may make sense to have an off-cycle enrollment period.
   Remind your clients that an extended or off-cycle enrollment period demonstrates that a company values it’s employee’s well-being and wants to provide ample time to make the best decisions for themselves and their families. It may also lead to higher employee satisfaction and loyalty.
5. Be mindful of the three segments: It’s the reason I dedicated time to define the sentiments of working Americans in my last blog post. Make sure your communications speak to those who are financially challenged, stable and healthy. It may prove to be extremely useful in a multi-channel communication strategy.
   a. For the financially challenged: Focus on how voluntary benefits are designed to fit most any budget, the cost-effective options for essential coverage, and to help ensure financial security against unexpected life events.
   b. For the financially stable: Focus on maximizing their voluntary benefits. Consider elevating coverage and comprehensive protection for life events, such as new family members, marriage, or a new home. These may equate to a need for more protection.
   c. For the financially healthy: Promote the need for voluntary benefits and coverage that complement not just life events, but a thriving lifestyle. Discuss how voluntary benefits can further expand their financial well-being.

And, if you work with a carrier like MassMutual, you won’t have to go it alone. We provide a dedicated implementation manager to help you strategize your enrollment activity.

Effectively positioning a benefits package during enrollment is essential. By highlighting how the offered benefits align with an employee’s financial well-being, companies can help ensure their workforce understands the value and relevance of the benefits offered.

Communications need to clearly state how they help to address a worker’s financial challenges, protect those that count on them, improve overall perceptions of well-being, help them to make better decisions, and feel more confident about their choices.

If you are a follower of our monthly Workforce Financial Stability Score (WFSS), you may be tracking the sentiments of employees when it comes to feelings of financial security. If you are not, I would recommend signing up now because we are about to release a full analysis based on a year’s worth of surveys that describes the state of financial well-being for working Americans. This may provide even greater insights as you plan for this enrollment.

Benefits producers have a unique opportunity to help make a difference. By promoting voluntary benefits and helping their clients understand the challenges of their employees, they can empower companies to support their financial security. Employers who support these initiatives not only enhance the overall productivity of employees, but also cultivate a work environment that recognizes their financial needs and overall financial health. Recognize that one in four employees are feeling financially challenged and you can help change that.¹

Let’s make this enrollment season Worksite Better.