Why a Harder Sign-Up Could Boost Employee Benefit Engagement

In the competitive landscape of employee benefits, engagement is key. Many employers invest heavily in voluntary benefits, from wellness programs to financial coaching, only to find that very few employees utilize them. Traditional wisdom suggests that simplifying the enrollment process—through fewer questions and a quick sign-up—will drive higher participation rates. However, new research from Harvard Business School challenges this notion, revealing that a more deliberate sign-up process may actually lead to greater long-term engagement with certain benefits.

Led by Professor Ashley Whillans, this research explores the dynamics of employee engagement through a series of experiments involving over 27,000 participants. The findings suggest that when employees invest effort into signing up for benefits, they are more likely to return and engage with those benefits over time. This phenomenon, termed the "buy-in effect," indicates that a little friction during enrollment can foster a deeper sense of ownership over the benefits, leading to increased utilization.

The Buy-In Effect: Understanding the Research

The research conducted by Whillans and her colleagues involved two primary experiments. In the first, participants were divided into two groups when signing up for a state-run carpool platform. The first group had a streamlined one-click registration, while the second group faced a slightly more complex process, requiring them to re-enter their commute details. While the simpler sign-up resulted in more registrations overall, those who experienced the tougher sign-up process took 1.6 times more carpool trips per week over the next four months than their lower-effort counterparts.

In a second experiment, a similar pattern emerged with an online task. Participants who completed a 15-question survey before starting their work were 37% more likely to return for a second day compared to those who signed up with a single click. They also completed roughly 50% more work overall. The researchers attribute this to a psychological mechanism: the feeling that the effort invested makes the behavior more valuable.

Implications for Employee Benefits

For benefits brokers and employers, these findings arrive at a pivotal time. A recent survey by the Employee Benefit Research Institute indicated that administrative complexity and gaps in employee education are the primary barriers to voluntary benefit utilization, rather than disinterest or cost. This revelation raises important questions about how benefits should be presented and what the ideal enrollment process looks like.

While the instinct may be to simplify everything to boost participation, the research highlights the necessity of differentiating between types of benefits. Not all benefits function the same way; some require ongoing engagement, while others are one-time decisions. Understanding this distinction can be crucial in shaping enrollment strategies.

When to Embrace Complexity

According to the researchers, the buy-in effect is particularly applicable when:

• The behavior requires ongoing follow-through, such as using a fitness app or attending wellness sessions.
• The sign-up effort and the desired behavior are both voluntary.
• The extra steps in the process feel relevant to the benefit being offered, rather than arbitrary hurdles.

Examples of benefits that fit this description include employee assistance programs, diabetes management apps, financial coaching subscriptions, and various wellness initiatives. These are not simply set-and-forget benefits; their value is realized through repeated interaction and engagement.

Strategies for Effective Enrollment

To leverage the buy-in effect, employers and brokers may need to rethink their approach to enrollment processes for benefits requiring ongoing use. For instance, instead of allowing immediate access to a wellness app, companies could require employees to complete a brief onboarding questionnaire that personalizes their experience. This small step can foster a sense of ownership, making employees more likely to engage deeply with the app's offerings.

Another example could involve requiring employees to schedule an introductory call with a coach before accessing therapy sessions, thus creating a commitment to the benefit from the outset. Many existing digital health tools already incorporate this strategy, using onboarding questions to enhance engagement. The research suggests this practice has significant merit and should be intentionally integrated into benefit offerings.

When Simplicity Is Key

It's important to recognize that not all benefits should be treated the same way. Some enrollment processes are inherently one-time actions, such as selecting a health insurance plan, establishing a retirement contribution, or designating a life insurance beneficiary. In these cases, making the sign-up as frictionless as possible is still the best approach. Adding unnecessary complexity can confuse employees, leading to second-guessing and frustration.

According to the Hartford's 2026 Future of Benefits Study, 43% of U.S. workers express uncertainty about whether they’ve made the right benefits selections. For these one-time decisions, a streamlined process is essential to empower employees to make confident choices.

Key Takeaways

• Research shows that a more complex sign-up process can enhance engagement with ongoing employee benefits.
• The buy-in effect suggests that initial effort leads to greater long-term utilization.
• Employers should distinguish between benefits that require ongoing participation and those that are one-time decisions.
• Integrating small, meaningful steps into the enrollment process can foster commitment to ongoing benefits.
• For one-time enrollment decisions, simplicity remains the best approach to avoid confusion.

Frequently Asked Questions

What is the buy-in effect?

The buy-in effect refers to the psychological phenomenon where a small amount of initial effort invested in a task or process leads individuals to feel a greater sense of ownership and commitment to that task. In the context of employee benefits, this means that when employees have to put in some effort to enroll in a benefit, they are more likely to engage with that benefit over time.

How should employers approach benefit enrollment based on this research?

Employers should differentiate their approach based on the type of benefits being offered. For benefits that require ongoing engagement, such as wellness and coaching programs, employers may want to include a small, meaningful step during the enrollment process to enhance commitment. Conversely, for one-time enrollment decisions like health insurance selection, simplicity should be prioritized to reduce confusion.

What types of benefits would benefit from a complex sign-up process?

Benefits that require repeated use or ongoing participation are prime candidates for a more complex sign-up process. Examples include employee assistance programs, fitness apps, or financial coaching services. By incorporating small initial steps, employers can foster a stronger connection between employees and the benefits they choose.

Are there any scenarios where a simplified process is still necessary?

Yes, for one-time enrollment actions—such as selecting a health plan or designating life insurance beneficiaries—simplified processes are crucial. Adding unnecessary complexity in these situations can lead to employee confusion and dissatisfaction, as many workers already feel uncertain about their benefit choices.