Every October, HR teams across America gear up for what they’ve long considered an administrative task: open enrollment season. But here’s what most employers are missing. Those few weeks when employees select their benefits aren’t just about compliance and paperwork. Open enrollment is one of the most underutilized opportunities companies have each year to advance workplace equity.

While 85% of employees at companies with comprehensive wellness benefits say these programs are important to them, utilization rates reveal a troubling divide. Higher-income employees are significantly more likely to use preventive care benefits, and employees without college degrees are far less likely to participate in wellness programs, even when they’re fully covered.

This isn’t because employees don’t care about their health. It’s because we’ve built invisible barriers into how we offer and communicate these benefits.

The equity gap in benefits

More than ever, for an organization to build and maintain a strong workforce, it needs to care about its employees as individual people. But most employers design their benefits packages with good intentions while missing the structural inequities built into how we present and deliver these benefits.

Consider the typical open enrollment experience: Employees receive a dense benefits guide, attend a brief information session and navigate a complex online portal. For a higher-paid office worker, this might feel manageable. For a customer service representative juggling two jobs and caring for aging parents, it’s overwhelming.

The barriers hit in predictable ways. Economic barriers come first. Even when wellness benefits are technically “free,” hidden costs pile up quickly. Gym memberships require upfront payments that get reimbursed months later. Mental health apps need personal credit cards for premium features. Preventive care visits mean taking unpaid time off work.

Complexity barriers follow close behind. Benefits communications are written for college-educated audiences, filled with insurance jargon. Cultural barriers may be the most damaging. Wellness programs designed around expensive gym memberships and boutique fitness classes send a clear message about who they’re really for.

The result? A two-tiered system where the employees who most need support are least likely to receive it.

3 strategies to fix open enrollment

As chief people officer for Wellhub, I’ve seen how the way we structure and present benefits determines who actually benefits. Forward-thinking employers are beginning to recognize that open enrollment isn’t just about offering benefits. It’s about ensuring equitable access to those benefits.

Default to equity

Instead of asking employees to opt into wellness programs, make high-value, low-barrier benefits the default choice. This means automatic enrollment in telemedicine services, mental health support platforms and basic wellness programs, with easy opt-out options.

Research consistently shows that defaults drive behavior, and in benefits selection, defaults determine who gets help. When employers default to comprehensive wellness coverage, When employers default to comprehensive wellness coverage, participation rates among traditionally underserved groups can increase significantly.

Reduce financial barriers

Move beyond traditional reimbursement models to direct-pay arrangements that eliminate upfront costs for employees. Pre-tax health savings account contributions specifically earmarked for wellness expenses provide immediate purchasing power. Emergency stipends for wellness-related costs acknowledge the real-world constraints many employees face.

See also: 7 ways employers can limit fast-rising healthcare costs

Simplify communications

Abandon one-size-fits-all benefits communications in favor of more targeted, relevant messaging. Consider offering information sessions in multiple languages, partnering with employee resource groups to provide peer-to-peer benefits education, or creating decision trees that help employees with different life circumstances find relevant programs.

The business case is clear

This isn’t just about doing the right thing, though that matters enormously. In our research at Wellhub, The State of Work-Life Wellness 2025, we found that 83% of employees said they’d consider leaving their current employer due to a lack of focus on wellbeing. Industry data consistently shows that 89% of job seekers will only consider companies that prioritize employee wellbeing.

Healthcare cost management can improve when preventive care utilization increases across employee populations. Companies often see reductions in overall healthcare costs when benefits utilization becomes more equitable. Employees who actively use wellness benefits tend to report higher job satisfaction and lower turnover rates.

Start transforming open enrollment now

Transforming open enrollment requires three immediate actions:

Start with data. Track not just enrollment numbers but actual utilization across different employee populations. Set specific goals for closing participation gaps.

Simplify relentlessly. Every form, every decision point, every piece of jargon creates potential barriers. Make benefits selection as simple and straightforward as possible.

Partner with frontline employees. The most effective benefits changes come from listening to employees who currently struggle with existing systems.

As a people leader myself, I’ve seen how transformational it can be when companies truly commit to equitable wellness programs. This transformation requires intention, investment and genuine commitment to equity. But for employers ready to see open enrollment as strategy rather than administration, the opportunity to make a real difference in employees’ lives while driving business results has never been clearer.

The question isn’t whether your company can afford to make benefits more equitable. It’s whether we, as an industry, can afford not to.