How to Evaluate Employee Benefits Before Open Enrollment

Open enrollment is more than a chance to review next year’s insurance premiums. It’s an opportunity to ask whether your benefits package still works for your business and your employees.

Renewing the same plans may be the right decision. But you won’t know until you look beyond the renewal quote.

A benefits review is essential to understand company spending, employee preferences, and to identify areas to boost engagement and reduce unnecessary administrative work.

Here’s where to focus.
Quick Answer: To evaluate employee benefits before open enrollment, look past premiums to what employees actually pay, including deductibles, copays, and out-of-pocket maximums. Survey employees about what they value, review benefits beyond medical coverage, and measure the administrative work your team handles. Compare all options, including a PEO, and make decisions before enrollment begins.

What Do Benefits Actually Cost Employees?

Premiums are only part of health coverage costs.

When comparing medical plans, review employee contributions alongside deductibles, copayments, coinsurance, out-of-pocket maximums, prescription coverage, and provider networks. A plan with a lower monthly premium may cost an employee more when they need care.

The 2025 KFF Employer Health Benefits Survey found that average annual premiums for employer-sponsored coverage were $9,325 for single coverage and $26,993 for family coverage. Covered workers paid an average of 16% and 26% of those premiums, respectively.

Those are national benchmarks, not targets every employer should follow. Your costs and contribution strategy need to reflect your available plans, budget, and workforce.

Before making changes, compare several realistic coverage scenarios to understand potential costs for employees with varying medical needs and make better decisions.

That comparison gives you a clearer picture than premiums alone.

Which Benefits Do Employees Value Most?

Enrollment data tells you which benefits employees select. It doesn’t always tell you why.

To help HR professionals feel valued and trusted, ask employees directly which benefits they value most, ensuring your offerings truly resonate and boost engagement.

Ask employees directly.

A short, confidential survey can reveal which benefits they value, where they struggle with costs or access, and what they would like you to consider next year. Pair that feedback with enrollment and participation data rather than making decisions from either source alone.

Be especially careful with health-related information. Review appropriately aggregated data and avoid seeking individual employees’ medical details.

For a broader approach to measuring workforce needs, see INFINITI HR’s guide to HR metrics.

Which Benefits Should You Review Beyond Medical Coverage?

While medical insurance is significant, reviewing retirement plans, paid leave, and disability coverage can help HR professionals feel confident they’re supporting employees’ broader needs effectively.

Depending on your workforce, it may be worth evaluating financial wellness resources, emergency savings options, or voluntary benefits.

Don’t add programs simply because other employers offer them. Ask whether employees want them, what they cost, and how they fit into your overall package.

For example, a retirement plan with an employer contribution addresses a different need from short-term financial counseling. Neither is a universal substitute for the other.

INFINITI HR explores these considerations in The Workforce Blueprint: Why 401(k) & Financial Wellness Are Now Core to Your Workforce Strategy.

How Much Work Does Benefits Administration Create?

A benefits package can look simple on paper while creating significant work behind the scenes.

Consider how much time your team spends managing enrollment, answering questions, coordinating with vendors, correcting payroll deductions, and handling employee changes.

Review whether your current systems and processes streamline benefits management tasks like enrollment, employee questions, and vendor coordination. Identifying areas to simplify or automate workflows will reduce administrative burden and improve accuracy.

Benefits administration also involves legal obligations that depend on your organization and plans. Confirm which requirements apply, who is responsible, and whether your documentation and deadlines are in order.

Clear HR workflows and documentation can help your team manage that work more consistently.

Should You Consider a PEO for Benefits Administration?

If benefits administration is becoming difficult to manage, a professional employer organization (PEO) may be worth considering.

Depending on the arrangement, a PEO can provide benefits administration, payroll services, HR support, and access to different benefits options.

But a PEO does not automatically mean lower premiums or better coverage. Compare its complete proposal with your current arrangement, including plan costs, employee contributions, fees, services, contractual responsibilities, and implementation requirements.

The same principle applies when comparing insurance carriers, brokers, or benefits technology: evaluate what your organization will actually receive, not just the headline price.

When Should You Make Benefits Decisions?

Deciding early can help organizational decision-makers feel prepared and in control, reducing last-minute stress before enrollment begins.

Once you’ve reviewed the numbers and gathered employee feedback, decide what needs to change.

You may find that your current plans remain a good fit. You may identify a coverage gap, an affordability concern, a benefit employees don’t understand, or an administrative process worth improving.

Whatever you decide, communicate it clearly to build trust and ensure employees understand their options and costs.

The goal isn’t to offer the longest list of benefits. It’s to offer a package your organization can sustain, and employees can understand and use.

Key Takeaways:

• Premiums are only part of the cost. Compare deductibles, copays, coinsurance, and out-of-pocket maximums.
• Use KFF national averages as benchmarks, not targets. Your plans should fit your budget and workforce.
• Ask employees directly what they value and pair that feedback with enrollment data.
• Count the administrative work behind your benefits, including enrollment, vendor coordination, and payroll corrections.
• A PEO does not automatically mean lower premiums. Compare the full proposal with your current setup.

INFINITI HR helps employers evaluate benefits strategies and explore HR and benefits administration options. Contact us to discuss your organization’s needs.

For more on benefits planning, read Data-Driven Benefits Strategy: Lessons From Last Year to Transform This Year.

This article is for informational purposes only and does not constitute legal, tax, or financial advice. Consult a qualified benefits advisor, broker, or legal professional for guidance specific to your organization.