In today's dynamic business landscape, the realm of employee benefits is constantly changing. To stay ahead, employers must proactively assess and adapt their benefits offerings to meet the evolving needs of their workforce. It's important to start looking into things early in the year to be ready for any changes.
Employee benefits encompass a wide range of offerings, including health insurance, retirement plans, paid time off, wellness programs, and more. These benefits play an important role in shaping the overall employee experience and impact factors such as job satisfaction, productivity, and loyalty.
For employers, investing in good benefits does more than just create a positive work environment. It's also a powerful tool for attracting new employees and keeping current ones from leaving. In today's job market where workers have many options, having an attractive benefits package can make the difference in getting top talent and reducing turnover.
Challenges Employers Face with Benefits
1. Offering Meaningful Benefits
- Employers need to provide benefits that meet each employee's unique needs and values. This includes:
- Using benefits to show company values and reduce employee risks, since workers expect companies to take a stand on social issues.
- Making progress in addressing health inequalities related to race, gender, and income level.
- Offering sustainable benefits that help the environment.
- Creating a supportive culture with benefits that promote total worker health and safety.
2. Improving the Experience
- Employers must address issues that make the benefits experience fragmented and inefficient. This means:
- Supporting quick decision-making to better connect programs and improve the experience.
- Using artificial intelligence (AI) to provide engaging and effective member services.
- Rethinking healthcare to offer predictive, personalized support.
- Using more personal data and AI to provide next-generation advocacy.
3. Balancing Costs and Compassion
- Benefit decisions impact more than just the annual budget - employers must consider the financial reality for employees too. This involves:
- Ensuring resilience and value for the company and employees, even in tough economic times.
- Using non-traditional methods to manage costs, like alternative networks, limiting choices, and removing low-value programs.
- Reducing negative impacts of cost-cutting on employees' financial and mental well-being.
- Balancing financial savings with maintaining an attractive employment package.
4. Using Healthcare Advancements
- Employers should optimize technological advancements in healthcare to improve access. This means:
- Balancing human and digital healthcare delivery to improve health and provide value.
- Using AI for diagnosis and treatment, while ensuring added costs provide value.
- Using protocols to prevent bias in AI programs that could worsen existing health inequities.
- Addressing data privacy concerns around the power of AI.
Planning for the Upcoming Year
As an employer that is planning for the upcoming year, you should focus on benefit design, experience, and execution.
For design, potential actions include:
- Adding solutions for specific health conditions
- Add Rx programs to manage utilization and cost
- Enhancing digital health strategy
- Expand benefits and access to reproductive healthcare needs
For experience, potential actions include:
- Getting employee feedback through surveys or focus groups
- Offering more choices by adding voluntary benefits
- Adding health advocacy and clinical services
- Adding more mental health resources
- Adding caregiver support to attract and retain employees
- Revisiting leave policies and exploring creative leave options
For execution, potential actions include:
- Increasing budgets due to inflation
- Evaluating carving out certain solutions
- Adding individual disability insurance
- Understanding/negotiating fees with carriers
- Conducting audits on claims, clinical programs, rebates, and dependent eligibility
- Conducting compliance audits
Offering meaningful employee benefits is more than just following the rules or sticking to a budget, it’s about making sure your employees feel cared for and supported!