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What Open Enrollment Really Looks Like for Small Businesses and Why It Often Goes Wrong

Open enrollment is one of the most important moments in the employee benefits calendar, and one of the most misunderstood.


For many small and mid sized businesses, open enrollment feels rushed, confusing, and reactive. Employees ask questions at the last minute, paperwork piles up, and leadership is left hoping everything was set up correctly. When open enrollment is treated as a one time event instead of a managed process, problems tend to surface quickly.

Open Enrollment Is a Process, Not a Deadline

Many employers think of open enrollment as a short window on the calendar. In reality, it is a multi step process that starts months before employees ever log in to make selections.


A well run open enrollment typically includes:

Skipping any of these steps increases the risk of errors, employee confusion, and compliance issues.

Where Most Employers Get Stuck

Small businesses often struggle with open enrollment for a few common reasons.

 

Limited internal resources
Many employers do not have a dedicated HR team, which means enrollment tasks fall on leadership or office managers who already have full plates.

 

Manual administration
Spreadsheets, paper forms, and disconnected systems slow everything down and increase the chance of mistakes.

 

Unclear employee communication
Employees often do not understand their options, deadlines, or how changes impact their paycheck, which leads to frustration and rushed decisions.

 

Lack of year round support
When benefits are only reviewed once a year, open enrollment becomes the first time issues are addressed, usually too late to fix them easily.

The Role of an Employee Benefits Broker During Open Enrollment

A strong employee benefits broker does far more than deliver plan options. During open enrollment, their role is to bring structure, clarity, and accountability to the process.

This includes:

Palmetto Insurance Group supports open enrollment as part of a broader benefits administration and HR support strategy, helping employers reduce administrative burden while improving accuracy.

Why Benefits Administration Matters After Enrollment Ends

Open enrollment does not end when employees submit their elections. In fact, that is when administration becomes critical.

 

Ongoing administration includes:

Without proper administration support, small issues compound quickly and can lead to billing errors, coverage gaps, or compliance exposure.

 

Employers often underestimate how much time and risk this creates over the course of a year.

Technology Alone Is Not the Answer

While modern enrollment platforms are essential, technology without guidance often creates more confusion than clarity.

 

The most effective approach combines:

This is where an employee benefits consultant brings value beyond software.

 

You can explore how Palmetto integrates enrollment and administration support through its employee benefits and HR services, designed for growing businesses with limited internal resources.

A More Sustainable Way to Handle Open Enrollment

When open enrollment is managed intentionally, it becomes predictable instead of stressful. Employees understand their options, leadership gains visibility, and administrative work is reduced rather than intensified.

 

The key is treating benefits as an ongoing process, not a once a year scramble.

 

If your last open enrollment felt rushed or overwhelming, it may be time to rethink how it is being managed. Reaching out to a trusted employee benefits advisor can bring clarity long before the next deadline arrives.

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