Posted on Friday, August 30, 2019 by Marcy Klipfel
One of the most important decisions a benefits manager will make each year is whether to hold an active vs. passive enrollment.
- Higher employee engagement
- Better ROI on benefits offerings
- Higher benefits visibility
- Gives employees an opportunity to think about and select their benefits
- Can help promote higher benefits literacy
Active enrollment cons
- More administrative work
- If not properly implemented, employees may not have all the right information to make informed decisions about their benefits
- Employees could miss enrollment deadlines and be without coverage
- More time consuming
- Without a technology partner, could take more resources to implement
Passive enrollment pros
- Less time to implement
- Takes less communication to employees
- Employees don’t run the risk of being without coverage
- Less administrative work
- No plan changes, no worries
Passive enrollment cons
- Employees are defaulted to coverage that may not be a good fit for them
- Employees are less aware of benefits offerings and might not be aware of new options
- Low engagement from employees
- Potential higher benefits cost if employees are overinsured from default coverage
- Lower benefits literacy
Still on the fence about which one to choose? Take our handy quiz to find out which option would be better for your organization.
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