Is your business ready for benefits renewal season? For small and midsize employers, the process of renewing your employee benefits package can feel like a whirlwind of deadlines, confusing paperwork, and—worst of all—significant cost increases.
Navigating this period can be daunting, and most employers just want to find a straightforward way to keep their employees happy without breaking their budget for benefits. But how?
“After a long period of high benefits inflation and in the face of a possibly weakening economy, employers are taking a step back and looking to focus on what drives real value for employees and the business,” Jeff Levin-Scherz, population health leader of the health and benefits practice for North America at WTW (formerly Willis Towers Watson), told HR Dive. “That means targeting support and spending on the benefits that matter most, enabling personalization and helping employees make better decisions.”
Indeed, with the right strategy and the right mix of benefits for your situation (and the right checklist) you can take control of the renewal process, reduce unnecessary costs, stay compliant, and deliver a stronger benefits experience to your team.
Below is your open enrollment checklist, structured to help you move step by step through review, planning, and execution.
Two-thirds (63%) of U.S. employers plan to shift their benefits strategy in the next three years, and the biggest reason by far is rising benefits costs. In response, many employers are adjusting their approach by reallocating resources, switching vendors, promoting wellness, or rebalancing plan design.
But cost savings are only one possible goal out of many. The first steps in your benefits renewal journey are goal setting and planning. Ask yourself: what do we want our employee benefits package to do for the business this year? Attract top talent? Support retention? Increase satisfaction?
But as you set your priorities and make your plans, be careful not to let a gap grow between intent and execution. For example, one study found that while 73% of employers say they want to improve communication around benefits, only 33% have developed formal communication guidelines. That kind of 40-point gap is how benefits programs fail to achieve their intended objectives. Make sure your priorities are matched by actions.
Open Enrollment Checklist:
2. Review Your Current Benefits Offering
Before you can optimize your offerings, you need a clear understanding of what you currently provide and how well they’re working. Moreover, look deeper than just what plans are in place. Look at enrollment, usage, satisfaction, and cost trends.
This step forms the foundation for every decision that follows. If a benefit has low enrollment and high cost, is it worth keeping? If employees are opting out of your health plan, what alternatives might better meet their needs?
From there, you can figure out what benefits to offer, and in what combination. You have a lot of options; according to the Society for Human Resource Management (SHRM), the number of potential benefit offerings has been rising dramatically. From 2023 to 2024, the sheer range of options increased by 23%.
“There is a huge amount of different benefits employers can provide now, and more new ideas come up all the time,” says Daniel Stunes, manager of data monetization with SHRM Data and Insights. Don’t assume you have to stick with what you’re already offering.
This is also the time to take a step back and review how your organization administers its benefits. For example, are there aspects of your benefits administration that are out of date? Are your internal staff overwhelmed by the workload? These kinds of issues will make benefits renewals and enrollment harder than they need to be.
Open Enrollment Checklist:
This step should probably be executed in tandem with #2, because your benefits should evolve alongside your workforce. As your team grows and changes, so do their priorities. Younger employees may want student loan repayment help. Parents may look for flexible leave policies. And nearly everyone appreciates mental health support.
You don’t need a massive survey project. Even a short anonymous poll or feedback gathered through informal one-on-ones can unlock key insights.
Open Enrollment Checklist:
4. Analyze Costs and Budget Implications
This is where strategy and reality meet. It’s one thing to identify ideal plan features; it’s another to fit them within your financial model. The good news: renewal season is your best chance to control costs.
For non-negotiable, must-offer benefits (like health insurance or paid time off), don’t automatically roll over your current plans. Shop the market, review contributions, and explore funding models like HSAs or level-funded plans.
For other parts of your employee benefits package, benefits renewal is the time to reassess your strategy. For example, some benefits, like flexible working hours, are highly desired by employees but relatively low cost to implement. Similarly, incorporating optional voluntary benefits and other “perks” can make employees feel valued and supported while reducing the overall cost of benefits packages.
Open Enrollment Checklist:
5. Plan Your Employee Communication Strategy
Even the best employee benefits package will fall flat if your employees don’t understand it or, worse, feel blindsided by changes. Planning how and when you’ll communicate is just as important as what you’ll say. And yet, communication remains a weak link for most employers. Proactive planning now can save your HR team hours of confusion later.
The key: “[T]hink like a marketer,” Kirk McConnell, product marketing lead at Collective Health, told SHRM. If you want your team to appreciate their benefits, tell them what’s great about those benefits. If necessary, get help. “Many brokers and consultants offer communications support,” McConnell pointed out.
6. Execute the Plan
Having a communication plan is only half the job. Now it’s time to bring it to life. From kickoff meetings to one-on-one support, every touchpoint helps reinforce the value of your benefits renewal and make employees feel supported.
This is also your chance to build appreciation for the investment you’ve made in your people.
Open Enrollment Checklist:
7. Leverage a PEO to Simplify the Entire Process
If all of the above sounds like a lot to manage, it is. That’s why more small and midsize businesses are partnering with PEOs to offload administrative burdens and improve results. And if costs are a concern, you can’t beat PEOs for cost improvements.
According to one analysis, the average PEO client saves $654 per FTE in health benefits costs alone…and that’s even as PEOs “are also able to provide a wider range of health benefits options to their clients, a benefit that is not reflected when focusing solely on cost savings,” say Laurie Bassi and Dan McMurrer, CEO and Chief Analyst respectively at McBassi & Company.
Ultimately, a PEO can help you benchmark costs, streamline compliance, offer large-group-level benefits, and support employee communication and engagement. They also bring systems, expertise, and scale that would otherwise be out of reach for small teams.
Open Enrollment Checklist:
Be Proactive, Not Reactive
Benefits renewal season doesn’t have to be a headache. With a clear strategy, a thoughtful review process, and a reliable open enrollment checklist, you can turn what’s usually a burden into a business advantage.
A well-managed employee benefits package can improve satisfaction, boost retention, and even enhance your employer brand. And with the support of a PEO like CoAdvantage, you can make every step from planning to paperwork faster, smarter, and easier. For more information about how CoAdvantage can help your team manage benefits renewal, learn more about our premium coverage and benefit administration services.
**The information provided on this website is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and completeness of the information, we make no guarantees about its correctness, completeness, or applicability to your specific circumstances. Laws and regulations are subject to change, and you should consult a qualified legal professional before making any decisions based on the information provided here.