Changing benefits priorities highlight growing focus on employees
Brokers need to provide employers with personalized, digital support.
Two-thirds of employers made changes to their benefits strategy as a result of the pandemic, according to a survey released Monday by Ease, indicating a greater focus on employees’ needs.
Related: The workforce ecosystem: Re-imagining employers’ relationship with workers
Ease, an HR software provider, surveyed almost 650 HR leaders at companies with 500 or fewer employees. It identified ways that benefits brokers can better serve employers in 2021.
“Tracking how sentiments around health benefits are changing is critical to understanding the needs of policyholders,” David Reid, CEO and co-founder of Ease, said in a statement. “The pandemic has uprooted workplace norms, increased health care costs, and decreased the mental and physical well-being of employees. Our survey findings give greater insight into what executives and HR leaders are looking to prioritize in terms of employee benefits, how those have shifted, and what insurance brokers and agencies need to do more of in order to earn and retain business.”
Related: Role of HR professionals has taken on greater importance during pandemic, survey finds
More than half of employers (53%) say employee health and well-being is their top priority for 2021, the survey found. Meanwhile, 40% are focusing on how to manage claims and reduce costs without impacting employees’ satisfaction with their benefits.
Other priorities for 2021 include:
- Improving satisfaction and engagement (37%)
- Increasing productivity (36%)
- Controlling health care costs (35%)
Push for digitization
Of course, the pandemic spurred a move toward utilizing technology more effectively. Ease found that 53% of employers believe a benefits administration platform will play a bigger role in their strategy in the coming year, including 51% of small businesses.
Related: What employers should look for in digital health partners
The survey found the most important factors for employers when choosing new integrations were having a mobile app (44%), sharing data with insurance carriers (42%) and payroll integrations (39%).
The survey found that employers are looking for more personalization when managing HR functions, at the same time that the provider ecosystem is getting more crowded. Three-quarters of employers work with a health insurance broker, many with multiple vendors, including:
- HR software provider (45%)
- Payroll system (37%)
- Professional employer organization (32%)
More than half of employers (53%) changed benefits brokers in the last 12 months, including 61% of small businesses. Of those who didn’t, half would consider switching for a broker who provided better service, while 44% said a broker who could help them lower costs could draw them away from their current broker.
Education and communication are another area where employers want more personalization. The survey found that nearly 45% of employers want personalized education and resources from their broker to increase employee engagement in benefits plans.
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