I truly feel bad for employers. Most seem to fall victim to the latest idea or benefit trend, and this causes them to lose sight of what they are really trying to accomplish. Imagine what could be accomplished if the benefit strategy and corporate culture were well-aligned, clearly communicated, and linked together with a long-term purpose. It's important for employers and brokers to not get caught up in chasing the silver bullet. Establishing a clear strategy focused on retention, employee engagement, productivity and the overall well-being of employees makes benefit decisions easier and obvious. Drinking from the “what's new” fire hose hinders organizations from executing a clear and sustainable strategy.

Sustainability cannot exist without alignment from all stakeholders. Stakeholders could include the C-Suite, human resources, benefit administration/enrollment vendors, insurance carriers, brokers/consultants, TPAs and others. It is critical that all of these entities agree to clearly support and understand the goals and objectives of the client and are challenged to achieve them.  The employers' relationship with these organizations shouldn't be about selling ancillary products, face-to-face meetings, private exchanges, less choice, more choice or more participation in the 401(k) or wellness programs. It should be about the clear and sustainable strategy that was created, which could mean all or some of the above, or an entirely new list.  

One of the first steps for employers is to find partners who best align with the established goals and objectives. Don't start with an RFP to find the cheapest consultant, system, products and TPA. Develop an RFP to see who will give the organization the best opportunity to succeed.  

Related: How are brokers taking advantage of the latest tech trends?

I have learned that when you find organizations who can truly generate some synergy, and who you enjoy working with, then the price tends to work itself out. Talk price after you know who you want to work with; otherwise, price could cause strategic goals and objectives to change prematurely. Help your clients understand the value of sharing a vision with their partners and the decision will become much easier. A perfect example are brokers and consultants. They are so important in every stage of the employee benefits process that the fee shouldn't be at the forefront. Employers should be focused on how consultants align with their culture, executives and purpose.

Perceived value

Let's get back to the issue of value. Perceived value is a tricky thing. What one person perceives as extremely valuable may have very little value to someone else.  Too often, we make the mistake of believing that value is about money.  I have seen many organizations with employees who truly value the benefits package offered by their employer, even when the actual dollar value of that package is less competitive than the market. I have also seen organizations who offer a very rich benefits package to employees who don't appreciate them at all.  Why is this the case? The answer to this question can quickly become complex, but the good news is that employers have more control over this problem than they realize. Corporate culture is directly tied to perceived value. Organizations with healthy cultures that truly value their greatest assets (people) tend to score very high on the perceived value chart. Throughout the employment process, from recruitment, hiring, performance evaluations to exit interviews, they drive a consistent message. These organizations never become a victim of their benefit package, because their employees aren't placing all of their value on the size of a deductible or the percentage of coinsurance. They understand total compensation, the importance of overall well-being and place their value on the overall employee-employer relationship that enables them to progress personally and professionally. Employers offer so much more than “salary plus benefits,” so let's remove that vernacular.

Chasing the silver bullet

Employers are constantly searching for the next best thing, and the employee benefits industry as a whole is never lacking for new ideas; it's easy to get trapped chasing the silver bullet. There are some good products and strategies out there but unfortunately, employers rarely have the patience to truly commit to one before moving on to the next. This creates confusion, stress and a lack of engagement among employees.  Employers have to be able to customize an employment experience that is consistent with culture, builds trust and keeps everyone aligned. The health plan and employee benefits are just a part of the employment experience and need to fit like a perfect piece into the corporate puzzle. The answer for this lies in some of the highest ranking factors for job satisfaction, outside of compensation and benefits, according to the Society for Human Resource Management.  

• Opportunities to use skills and abilities
• Financial stability
• Relationship with immediate supervisor
• Communication between employees and senior management
• Autonomy and independence
• Management recognition of employees job performance
• Overall corporate culture
• Flexibility to balance life and work issues

These top drivers of job satisfaction are universally supported and should be the backbone of a quality organization. If each of these are being accomplished, then employers do not need to be a prisoner to their deductible or co-insurance.  Just create a benefit package that is consistent, clear, purposeful and aligned with these drivers. This is a critical point for brokers and consultants. It is time to focus more on cultural alignment, employee engagement and helping develop services that enhance the overall employee experience. This will increase credibility and create long-term inspired customers.

Personalization

When you are managing employees it is important to meet them where they are in the process. Every employee is unique and therefore needs to be managed uniquely. It is important for clients to get the most out of their employees, which requires trying to understand what motivates them. Are they analytical, emotional or financially driven?  Benefits delivery and communication is very similar. With the influx of defined contribution and private exchanges, we have moved rapidly into the personalization of benefits. When benefits become personal to someone, they become far more engaged in the process of choosing and utilizing them. Both advocacy and wellness are good programs that are inherently personalized, so it makes sense to evaluate those options. It is critical, regardless of the overall benefit strategy that you communicate in a way that clearly explains the personal impact of benefit choices. Do not deliver the program in a “take it or leave it” way. We need to shift the message and employee mindset from “these are the benefits the company offers” to “this is my benefits program.” Having an employee take ownership of their benefit package will take a huge bite out of the entitlement mentality and significantly increase engagement.

Let's face it, even with all the value technology can bring, it is now harder than ever to build a benefits package that appeals to all employees. However if the focus remains the overall employment experience, then things become much clearer. Remember to do the following: 1) align all stakeholders; 2) be consistent with corporate culture; 3) don't offer “salary plus benefits,” offer an overall employment experience; 4) focus on the top drivers of job satisfaction; 5) personalize the benefits experience.  This will help you shift the paradigm to an environment where employees stop feeling so entitled and begin to truly value their employer and take ownership of not only their benefits but their overall well-being.

Doug Layman is the President of Health & Life at Gilsbar. He is responsible for Gilsbar's corporate direction, vision, marketing and sales strategy.