How data science and personalization can transform the employee benefits experience
The gap that exists between employees and their benefits really boils down to a lack of confidence, education and transparency.
COVID-19 has drastically changed the way we live, work and do business. However, it’s disastrous effects have sparked a new wave of innovation across the health care and insurance industry. By exposing some of the gaps that negatively impact the employee experience, new technologies driven by big data, analytics and AI have risen to meet those challenges head on.
Consumers today expect superior customer experiences – and when choosing their benefits, it should be no different. In fact, 71% of consumers say that “living profiles” with more detailed personal preferences would be useful if they were used to curate personalized experiences, products and offers. In the employee benefits arena, delivering personalized experiences, especially when it comes to choosing and using benefits, is paramount.
Related: Mixed feelings: A year of pandemic increases appreciation of benefits, but issues remain
In fact, 1 in 3 workers find the enrollment process overwhelming and admit to simply “checking the box” for the same benefits they had the year before. And even after enrollment, when polled, about 33% of workers don’t really even understand the benefits they’ve selected.
In today’s day and age, consumers deserve a better experience, where they feel empowered and confident during and after enrollment.
Benefits challenges employers and employees face today
In today’s workforce, there are more than five generations of active workers – this means that employers are faced with providing options, guidance and education to support their employees across different life stages.
A one-size-fits-all approach to benefits won’t work due to the diversity of our workforce today and, as employers have seen in some cases, offering too many benefits to your employees doesn’t really solve the problem.
When polled, about 66% of employees are looking to their employers for help even after enrollment, meaning that most employees don’t understand how to take advantage of the benefits they have.
The gap that exists between employees and their benefits really boils down to a lack of confidence, education and transparency – and that’s where personalization can help.
Personalization improves the overall benefits experience
Leading companies like Amazon, Mint and Netflix leverage big data to create tailored experiences for their customers. Making it easier for them to research all types of products, their entertainment choices and even for financial advice & investment recommendations.
And, that makes a lot of sense as 91% of consumers are more likely to shop with brands who recognize, remember and provide relevant offers and recommendations.
However, the prerequisite for any type of personalization, regardless of the industry, is data. Solutions that incorporate big data can start to uncover patterns and help support decision making in a way that has never been done before.
By injecting big data and analytics into the benefits experience, employees will be able to make more informed and better benefits decisions. Removing the guesswork and confusion by adding data-driven insights and AI-powered guidance to help them pick the right plans and benefits that match their needs, and most importantly – help them save money.
For example, a recent CNBC article shed some light on some interesting health care trends concerning millennials. According to the data, some 44% of older millennials already have a chronic health condition and it’s currently affecting their bank accounts. Studies show that those with at least one chronic condition can spend twice as much on out-of-pocket health care expenses than those without any medical conditions.
Employers that offer their employees a decision support and benefits engagement platform built on data science and AI, would be able to offer hyper-personalized benefits recommendations. Taking into account an employee’s medical history and financial profile, employers could help their employees with chronic conditions save money by recommending supplemental benefits that offset yearly medical costs.
Data science & AI will increase awareness and engagement
Benefits can be one of the surest ways for employers to improve the employee experience and thereby increase retention and overall happiness. However, as stated above, a good majority of employees don’t understand their benefits or how to really take advantage of them throughout the year.
Fifty-six percent of U.S. adults with employer-sponsored health benefits said that whether or not they like their health coverage is a key factor in deciding to stay at their current job. Employees really appreciate getting insurance cheaper and more conveniently than they could on their own, and these benefits can provide peace of mind by filling coverage gaps and reducing out-of-pocket costs.
For example, one increasingly popular benefit is hospital indemnity insurance, which pays the employee a certain amount for each day of a hospital stay. This example highlights the power of Data science and AI-powered automation. Having a tool that can connect employees to these types of benefits is a huge win for both employers and employees. Significantly reducing the strain on HR teams and providing cost-savings opportunities directly to employees during enrollment & throughout the year.
In the end, having a solution that leverages big data to produce meaningful insights and personalized benefits recommendations, will greatly fill the gap that most employers and employees feel today.
Sina Chehrazi, CEO and co-founder of Nayya
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