Every year, HR professionals are tasked with announcing changes to employee benefits plans during open enrollmentāfrom new healthcare plan carriers to higher deductibles or a reduction in benefits offered. It’s a challenging responsibility, especially if HR expects employees might not receive the news well.
It’s a situation many in HR will likely face this open enrollment season, especially given thatĀ healthcare benefits costs for employers are expected to rise 9.9% this year, according to a WTW Global Medical Trends Survey. In addition, a recent Mercer report indicates that more than half (53%) of U.S. employers plan to make changes to their healthcare plans for 2025 that will raise costs or cut benefits for employees next year.
Savvy HR leaders, experts say, are wise to develop a strategy to deliver potentially bad news about benefits. If such news is communicated poorly, it can dash employee morale and drive up turnover, says Claudia Kitz, assistant professor of organizational psychology at the University of Groningen in the Netherlands.
To be proactive about delivering unwelcome benefits news, Kitz says, HR leaders may want to consider the SPIKES strategy, which stands for:
Setting: Find the right time to speak to employees about open enrollment.
Perception/perspective: Understand what employees know about the benefits.
Invitation: Inquire if they would like to talk about the current benefits.
Knowledge: Once you know what information employees want, use direct language to deliver news about any changes.
Empathy/emotion: Focus on the human impact if you’re delivering bad news.
Summary/strategy: Summarize the changes with clear statements and develop a strategy that communicates how the employer will support employees through these shifts.
Kitz recently sat down for a video interview with Human Resource Executive to discuss the missteps HR professionals tend to make when delivering bad news, especially during open enrollment, and strategies to improve communication.
