Every year, HR professionals are tasked with announcing changes to employee benefits plans during open enrollment—from 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 that 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.