Topic: HR & BENEFITS

What now separates one platform from another comes down to a unified experience, and whether the retirement benefit feels like part of the product, or a place where the product ends.

The 2-50 small group market, roughly 6 million employers, is the gateway to long-term PEO growth, and unlocking it at scale requires distribution strength in the broker channel, since brokers still own the relationships that shape most funding decisions.

One of the most valuable services a PEO provides to its clients is access to welfare benefits. Communication surrounding these benefits also represents some of the most impactful opportunities for a PEO to interact directly with covered employees. Key moments such as open enrollment, new hire enrollment and qualifying life events create meaningful touchpoints that enable employees to build relationships with the PEO’s client service and benefits teams. The quality of these communications can strongly affect an employee’s perception of both the PEO and their employer.

For the average person navigating benefits enrollment, it can feel like learning a new language. To fully realize the value, clients and employees must understand the range of benefits available and how those offerings support their workforce. At the same time, the wide range of benefit options can be overwhelming, often leading to decision paralysis and numerous questions during open enrollment. It is the responsibility of the PEO’s benefits team to communicate effectively with employees about their options and to provide the required guidance for well-informed decision-making.

Clear, timely and consistent communication is essential throughout the benefits lifecycle. When both clients and employees understand the value and practical details of their benefits offerings, everyone is better positioned to appreciate the complete compensation package, utilize available resources, and recognize the strategic value of the PEO partnership. Effective communication supports satisfaction, retention, and overall well-being for all parties.

Bridging these two perspectives, clients who make benefit decisions and employees who rely on those benefits require a coordinated communication strategy.

COMMUNICATING WITH CLIENTS

Each open enrollment cycle presents an opportunity to educate clients on the full value of the PEO’s benefits offerings. It is an ideal time to reinforce the advantages of a PEO’s purchasing power, which enables small businesses to access high-quality, competitive benefits that would often be unavailable or cost-prohibitive on the open market. Open enrollment discussions should not be viewed simply as a renewal process, but as a strategic conversation about employee attraction, retention, and satisfaction.

Renewal communications should provide clients with a comprehensive overview of any plan changes, premium adjustments, carrier updates, compliance considerations, and key enrollment timelines. Delivering this information well in advance gives clients time to understand upcoming changes and prepare for employee questions, helping support a smoother enrollment experience.

KEY COMPONENTS OF CLIENT COMMUNICATIONS

Effective client renewal communications should provide a clear, detailed summary of the upcoming plan year and help clients understand both what is changing and why it matters.

Key components should include: a summary of current and upcoming benefit offerings; an explanation of premium and employer contribution changes; key dates and enrollment deadlines; updates regarding carriers, networks, or plan design changes; compliance reminders and required notices; enrollment support resources available to employees; and, frequently asked questions and anticipated employee concerns.

Main Client Concerns

• Increases in medical, dental, vision, or ancillary benefit costs
• Impact of benefit changes on employee satisfaction and retention
• Budgeting for employer contributions in the upcoming plan year
• Understanding carrier or network changes
• Administrative workload associated with enrollment
• Compliance requirements and employer responsibilities
• How benefits compare to competitors in their industry
• Employee participation and engagement levels

Key Messages to Emphasize

• The purchasing power and negotiating leverage of the PEO
• The overall value of the benefits package, not just premium costs
• Market trends affecting healthcare costs and renewals
• Available plan options designed to meet diverse employee needs
• Enrollment support provided by the PEO benefits team
• Employee education resources and decision-support tools
• Compliance expertise and risk mitigation provided by the PEO
• Benefits as a tool for recruitment and employee retention

Open enrollment conversations are pivotal opportunities for PEOs to showcase their value. By helping clients clearly understand the benefits being offered, the reasons behind cost changes, and the broad support available, a PEO positions itself as a trusted strategic partner instead of just a benefits administrator.

COMMUNICATING WITH EMPLOYEES

Effective benefits communication for employees goes beyond distributing plan documents or holding annual meetings. A deliberate, ongoing focus on education empowers employees to make informed decisions, recognize the value of their compensation package, and take full advantage of available resources. This mirrors the importance of clear communication with clients, ensuring that both groups are equipped to maximize their benefits.

Why Employee Education Matters

Employee benefits have become increasingly complex, with options spanning health plans, wellness programs, voluntary benefits, and more.

Without proper education, employees may find it difficult to navigate their options and fully utilize the benefits available to them. Insufficient education can lead to multiple challenges, including underutilization of valuable benefits, such as preventive care, wellness programs, and Employee Assistance Programs; poor plan choices may result in financial stress or inadequate coverage; increased confusion and frustration during enrollment; and, the perceived value of benefits, and overall job satisfaction, may decline.

Education ensures that benefits are not just offered, but understood, appreciated, and used. Traditional benefits communication is often one-directional, relying on emails, brochures, websites, or enrollment portals that simply provide information. Employee education takes a more forward-looking approach through emphasizing comprehension, engagement, and knowledgeable decision-making throughout the entire benefits lifecycle. This approach should be continuous, including new-hire onboarding, qualifying life events, reminders throughout the plan year, and regular opportunities for learning and interaction.

Ultimately, employee benefits are only valuable if employees understand how to use them. Education transforms a benefits package from a passive offering into an active, meaningful resource that supports employees’ health, financial well-being, and overall job satisfaction.

SIMPLIFYING COMPLEX INFORMATION

Benefits terminology can be confusing, particularly for employees who have limited experience navigating health insurance and other benefits.

Terms such as deductibles, coinsurance, copayments, out-of-pocket maximums, and Health Savings Accounts (HSAs) can be overwhelming.  An effective education approach should use plain language instead of technical jargon; incorporate real-life scenarios, such as comparing the costs of a primary care visit, an emergency room visit, or a prescription refill under different plan options; and, break complex topics into smaller, easy-to-understand pieces that can be communicated over time rather than all at once.

Simplifying complex information helps employees feel more confident and capable when making important decisions.

HOW TO EDUCATE EMPLOYEES

Because employees absorb information in different ways, making a diverse communication strategy is essential to effective benefit education.

By delivering information using multiple channels and formats, PEOs and employers can accommodate diverse learning preferences, reinforce key concepts, and ensure employees have access to the resources they need throughout the benefits lifecycle.

An effective education strategy should incorporate multiple communication channels, including live webinars and workshops; on-demand videos and FAQs; interactive tools and decision-support calculators; mobile-friendly platforms; and, one-on-one counseling or guidance.

A multi-channel approach ensures that employees can access information in the way that works best for them, strengthening engagement and retention.

MAKING BENEFIT INFORMATION EASY TO ACCESS

Even the best efforts can fall short if benefit information is difficult to find or navigate. Accessibility is an essential part of effective benefit communication, employees must be able to quickly locate, understand, and act on information when they need it.

Employees often make benefits decisions under pressure, or during important life events. If information is buried in complex portals or scattered across multiple platforms, they may make uninformed or rushed decisions; miss key opportunities or deadlines; or, become frustrated and disengaged.

Delivering a centralized, intuitive, and mobile-friendly benefits experience helps employees apply what they have learned when it matters most. Self-service portals, searchable knowledge bases, educational videos, and decision-support tools should be designed to make information easy to access and understand, reducing confusion while improving the overall employee experience.

Unified, strategic communication across both clients and employees is the foundation of effective benefits management. PEOs that invest in ongoing, engaging education and clear messaging for every audience drive better benefit utilization, enhance satisfaction and well-being, and reinforce the unique value of the PEO model.

By simplifying complex information, providing decision-support tools, and ensuring consistent, high-quality guidance for both clients and employees, a PEO can transform benefits communication from a transactional process into an experience that supports retention, satisfaction, and long-term partnership.

Too often, benefits communications focus almost exclusively on health insurance while failing to highlight the broader ecosystem of offerings.

Cost containment does not have to mean cutting benefits. For PEOs, it means making sure the dental offerings are aligned with worksite employees’ needs.

PEOs that transition from transactional support to strategic partnerships build stronger relationships, enhance client retention and differentiate themselves in a competitive marketplace.

California announced an 8.7% increase in advisory pure premium rates effective 9/1/2025 and again recommends a similar magnitude increase effective 9/1/2026.

Modern, well‑aligned absence management approaches help PEOs retain ownership of compliance, reduce administrative friction, and provide the consistent oversight worksites expect.

A simple, safe moment of humor signals emotional steadiness. It communicates that the conversation is a process, not a confrontation.

For HR professionals working within a PEO, building strong partnerships with client-side HR professionals is essential. When the relationship works well, the client benefits from expanded expertise and resources.

Policies only work when organizations normalize boundaries and encourage employees to unplug without penalty. When leaders model respect for personal time, it signals that rest is part of professional responsibility, not resistance to it.

Conflict conversations. Critical conversations. Difficult conversations. These are all phrases people leaders have heard over the years to describe conversations that deliver anything but positive feedback and good news. These phrases all have one word in common: conversation. In the office, my team is used to hearing me say, “It’s just a conversation.” However, the older I get, the more I understand that these types of conversations are a skill that needs to be developed. At times, it can feel like an art. The bottom line is this: if we truly care about our team, our peers, our clients, and our organizations as a whole, then we should care enough to have difficult conversations.

The case for getting more comfortable with critical conversations is widely known. When leaders and teams avoid or mishandle difficult conversations, the consequences have a ripple effect throughout the organization. Unresolved conflicts and misunderstandings can escalate, creating tension and eroding collaboration. Performance issues often go unaddressed, which lowers productivity and impacts morale. In the absence of difficult conversations, an organization cannot achieve its full potential.

Like many things worth doing, improving an organization’s ability to effectively handle difficult conversations is easier said than done. If your organization is not great at or uncomfortable with difficult conversations, it may take a cultural shift, and as we know, cultural shifts take time. Ultimately, in order to have a culture of honest and transparent communication, you must have a foundation of trust. Building that foundation takes time, but it is possible by focusing on five key elements.

LEADING BY EXAMPLE

As with any change in an organization, executive leadership must champion the cultural shift and lead by example. In the case of creating a culture of comfort with difficult conversations, leadership must model transparent, direct, and honest communication. They should openly take accountability for mistakes, talk candidly about their own improvement journeys, and celebrate not just successes but the lessons learned from failures. This creates an environment where employees understand that openly discussing challenges or areas of improvement is not a sign their employment is at risk, but instead an opportunity to grow personally and professionally.

CREATING PSYCHOLOGICAL SAFETY

The term psychological safety is more than a buzzword. It is the foundation for building a culture of open and honest dialogue, especially when conversations feel difficult. This requires a standard practice of encouraging people to speak up without fear. It must be clear that both positive and critical feedback are essential to organizational growth and strength. Saying this verbally is a start, but actions matter more. Providing constructive feedback, especially when uncomfortable, must not only be encouraged but rewarded. Something as simple as private recognition to acknowledge someone for speaking up when it was hard can leave a lasting impression and provide the positive reinforcement needed to make the behavior a habit and then ultimately, a cultural norm.

BUILDING STRONG RELATIONSHIPS

In my experience, difficult conversations are much easier when you have a strong relationship with the other party. When there is a strong sense of care, trust, and connection, potentially difficult conversations feel less intimidating. Additionally, when you know someone well, you understand their communication style, and vice versa, which allows you to plan ahead and deliver your message intentionally, ensuring it is interpreted as intended. There are many ways to build strong relationships in the workplace, from team-building activities to regular, structured one-on-one meetings. Whatever method you choose, focus on creating space for open, honest dialogue and getting to know your team better.

CREATING STRUCTURED COACHING, PERFORMANCE AND FEEDBACK SYSTEMS

There are many systems and software solutions available to help organizations create structured performance management and feedback processes. The most important factor when determining what system to use is cultural alignment. If the work environment is highly structured and disciplined, choose a system that is consistent and process driven. Be sure to align feedback channels to measurable goals and KPIs. If you have a more flexible and relaxed work environment, focus on a system or software that focuses on adaptability and continuous feedback through less formal channels rather than rigid processes. The key is to ensure the system reflects the organization’s values and working style. Otherwise, it will feel forced and fail to gain traction. A well-aligned system not only standardizes performance management but also reinforces cultural norms, making feedback a natural and expected part of everyday work. When feedback is natural and expected, it is easier to give and receive it, especially when delivering difficult messages.

PROVIDING ONGOING TRAINING OPPORTUNITIES

As stated earlier, the ability to effectively execute difficult conversations is a skill that needs to be developed and maintained. Training and development opportunities should be offered regularly based on the needs of your organization. If you are just starting this journey, you might need to offer more frequent training to start. Once critical conversations become part of the organizational culture, you may only need periodic refreshers. Additionally, it is important to consider individual needs. Some people are naturally more or less comfortable with direct feedback, while others may have already worked to develop these skills. Make sure team members who need more support have access to tailored opportunities that consider their natural behaviors and traits. Development opportunities must focus on giving people the tools they need to have difficult conversations authentically, which will vary from person to person.

Building a culture where honest dialogue is the norm doesn’t happen overnight. It requires intentional effort, trust, and consistency. When organizations commit to these practices, they not only resolve issues faster but also strengthen relationships, boost engagement, and achieve their full potential. Avoiding tough conversations might feel easier in the moment, but it creates bigger problems later. And those problems are always harder to resolve than the conversations that were avoided.