Benefits administration is coming to the fore as an area where savings can be made, but a one-size-fits-all approach to benefits will simply not do. (Photo: Shutterstock)
The rising cost of employee benefits can no longer be ignored. Mercer's National Survey of Employer-Sponsored Health Plans 2017 showed that, for example, employers are struggling to control the cost of pharmaceuticals, which is due to rise more than 7 percent by the end of 2018. Our Global Employee Benefits Watch report also found that achieving “tighter control of global costs” has become an even higher priority initiative in the last year for 63 percent of respondents. Benefits administration is coming to the fore as an area where savings can be made, but a one-size-fits-all approach to benefits will simply not do.
Today's employees resist categorization. They want their individuality acknowledged and supported by their organization. At the same time, they seek consistency at every touchpoint with their organization. Technology holds the key to meeting these requirements, enabling organizations to deliver a consistent message and experience, and the flexibility to meet individual requirements. So how do you deliver an experience that meets the needs of a diverse set of employees while controlling costs?
|Put a defined benefits strategy in place for the long-term
Benefits teams can't expect to meet the cost control goals of their organization if there is not a long-term strategy in place. While most organizations have either already implemented – or are on their way to implementing—a global benefits strategy, the research reveals a mismatch between what organizations want to achieve and how their benefits strategies meet (or rather fail to meet) these goals. Only one in three organizations said their benefits strategy “is aligned to their people strategy” and nearly one in five either do not know if it's aligned to their people strategy or admit that it is not aligned at all. The first priority for organizations needs to be putting a benefits strategy in place that factors in their long-term people and business goals.
|Live out your company values through your benefits offering
When determining that long-term strategy, companies must factor in their company values and culture. Employees don't just want to know what their organization stands for – they want to experience it firsthand. So, every touchpoint that an employee has with their employer must resonate with what their employer says about themselves. Otherwise, it will diminish the organization's authenticity.
That is why the entire benefits experience needs to align globally with the organization's brand, so that employees share the same experience no matter where or how they work. While the people strategy needs to be a global one, it also needs to allow for local tailoring within this global framework to meet the particular needs of employees in different regions.
For example, an organization may have a strong focus on supporting employee mental health in their people strategy. Their global benefits strategy should then not only ensure local offices offer these benefits, but also focus on putting the technology in place globally for employees to be able to quickly access and select the support that is relevant to them. Of course, all the while tracking the effectiveness of the benefits offering through data on a global scale.
|Make proactive benefits engagement as simple and flexible as possible
Never before has the need to focus on individuality been so pronounced. We will soon have five generations in the workplace when previously there have been just three or four at a time. The need for flexible benefits is huge, but employers simply can't provide the range of benefits employees are looking for while controlling costs with an offline or fragmented system.
Organizations can make flexibility simple with benefits management technology that empowers choice without costing more. For example, a discounted gym membership might only benefit a proportion of the workforce. The same spend, on a wellness account empowered by technology, could be used to benefit the full workforce including those who would rather go to yoga classes, or join a social club. This shift to flexible spending accounts enables employees to use their benefits allowance as they see fit.
Ultimately, a flexible and intuitive online platform that offers choice and flexibility and is aligned with a company's values and culture goes a long way toward attracting, retaining, and engaging talent. Many organizations have already automated many processes and are on the path to taking full advantage of the data these systems provide through data analytics. Leveraging technology to provide an authentic and consistent employee experience helps companies achieve a competitive advantage in today's economy.
Read more:
- Benefits enrollment: up close and personal
- How will the benefits administration landscape evolve in 2019?
- Technology helping Americans feel more prepared for open enrollment
Chris Bruce is founder and managing director of Thomsons Online Benefits.
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