This renewal season, ask yourself: Can we afford to uphold the status quo?

When I began my benefits career 18 years ago, health insurance was a whole different ballgame. $0 deductible PPO plans were common. Prescription drug deductibles were unheard of. People were actually able to afford their health care — well, relatively speaking.

Over the years, I’ve watched a very concerning trend unfold. With every passing renewal season, I’ve seen an erosion of benefits. I’ve watched as the quality dwindled bit by bit, leaving in its place an overcomplicated system that drains employees’ time and resources, as well as business’ capital. I witnessed health spending by families covered by employer health plans rise two times faster than wages over the last decade.

Related: 3 major health insurance cost drivers

Now, instead of taking pride in how well we are supporting our people, we’re celebrating when a renewal comes in under a 10% increase. But those single-digit hikes add up fast. And that weighs on employers’ bottom lines, as well as employees’ health and happiness. Here’s the thing — it doesn’t have to be this way.

The pandemic was a long-overdue wake-up call

We would hope that our employees have the health care coverage and financial stability to weather any storm. But in 2019, half of U.S. adults reported that they or a family member have skipped out on medical or dental care or relied on alternative treatment in the last year solely due to cost. One in eight said their medical condition got worse because they put off treatment. Not exactly the numbers you want to see right before a major health crisis.

The pandemic made us pause, reflect, and see what’s working — and what needs work. For many, that was their job. Now we’re in the midst of a mass exodus in the job market. One in four workers are planning to leave their jobs after the pandemic. In April alone, a record 4 million workers quit.

I have a theory that workers’ expectations were going to change anyway. But the pandemic kicked it into overdrive. Now the world is changing at the speed of light, and we all need to keep up.

If there was ever a time to do something different, it’s right now. Employers need to rebuild a foundation of trust. Why? Not just out of the goodness of their heart — but because it’s simply good business sense. We need to show people that their employers care about their health and wellness. There’s no way around it, both for our people and our bottom line. And that starts with benefits.

The business case for better benefits

So what does an effective health care plan achieve? Let me paint you a picture.

Talented folks are pumped to join your team — and stay for a while.

With the “Great Resignation” already underway, it’s no wonder employers are eager to shield their business from high turnover rates. Losing great employees is expensive, disheartening, and disruptive to your projects and company culture.

Here’s the situation: As many as half of workers across industries are on the job hunt this year. The most popular reason reported for this exodus? Compensation and benefits.

On the other side of the coin, research shows that good health care can play a big role in retention. In a 2021 survey, 78% of employees said that their employer-provided coverage has an impact on their decision to stay put.

Employees are able to choose (and use) the right plan, making them healthier and happier.

Unfortunately, about 61% of people aren’t on the right health care plan. In the end, that costs time and money, both for the employee and the employer.

I’ll be honest — benefits are really hard to understand. Even for me, this stuff is confusing at times. I can only imagine what it’s like for everyone else.

Two-thirds of employees want support in understanding their benefits throughout the year. For HR leaders at smaller organizations, this may sound like a big task. But by using health care navigation tools like Jellyvision or Rightway, your employees won’t have to traverse their plans alone.

Your teams get the support they need to bring their full selves to work.

This may be stating the obvious, but when employees aren’t able to take care of their health, it impacts their ability to do their job. According to the CDC, personal and family health problems cost U.S. employers $1685 per employee in productivity losses — adding up to a grand total of $225.8 billion annually.

There’s nothing like a job well done. And it’s even better when your employees feel fulfilled and focused in their role. By providing your people with a great (and affordable) health care plan, you take one less stressor off their plate, so they can focus on the here and now.

This dream scenario shouldn’t be out of reach

I want to see employers of all sizes achieve this vision. So I’m calling it now: This year is our chance to create an effective benefits offering to support your employees while also keeping costs low enough to invest in your business.

Here’s how to achieve that balance: Instead of offering everything, focus on offering the right things. Give your employees the benefits that fit their unique lifestyle and needs by building a data-backed strategy that is tailored to your employee population and company goals.

This is something that your broker should be doing for you. You hired your broker to make benefits easy for you. And if they aren’t delivering on these promises… well, you wouldn’t be alone in this.

In many ways, brokers are the gatekeepers to health care. As a key player in negotiations each renewal season, they should be in the corner of the people who hired them — the 49% of Americans who receive health care through their employer.

Instead, too many brokers have been complicit in this benefits erosion over the years. And rather than face it head on, they hide behind layers of jargon. Even after 18 years as a benefits consultant, it’s difficult for me to diagnose a problem that doesn’t want to be found.

It’s time to start holding brokers accountable

Like in any other field, there are good brokers and bad brokers. When a broker isn’t held accountable to doing their job well, both your employees and your business suffer. This is where you, the HR leader, comes in. Here’s what you need to do this renewal season:

Rethink your benefits. Ask yourself, your employees, and your leadership — what do our teams need to be happy, healthy, and comfortable in their jobs, post-pandemic and beyond.

Communicate these priorities to your broker, then hold them accountable. Don’t let them try to confuse you. If they pull out the jargon, don’t be afraid to ask them to explain what they mean in real world terms. (And while you’re at it, might as well look into what they stand to gain with these rate increases — commission creep is real, and it can sneak up on you.)

Ask questions. Navigating health care is hard, especially for smaller employers. Your broker should act as a resource to explain tough concepts, recommend new strategies, and make this whole process easier on you. Here are some sample questions to get you started:

• Can you present a strategy and timeline for building a set of alternatives to my existing vendors ahead of our renewal?
• What cost-saving strategies can we deploy this renewal with minimal disruption to our employees?
• What digital health solutions specific to my employee population should I consider?
• What alternative higher-performing network options are available to me?

This renewal season is our opportunity to make a change. There’s never been a more crucial time to act. We’re coming up on what’s expected to be an incredibly unpredictable renewal season. For some, this could mean some of the highest rate increases in modern history.

Beyond that, this renewal season offers all employers a choice: You could go through the motions, and keep your offering ‘as is’ (potentially with a high rate increase). Or you could take a strategic approach to win your renewals by asking tough questions, and getting easy-to-understand responses.