Building out your benefits? 3 steps to a strong solution
The most successful benefits plans always incorporate three foundational steps: customization, integration and measurement.
Open enrollment is right around the corner. As companies compete to attract and retain talent in a bounce-back economy, many are looking to strong benefits plans to set themselves apart. Yet just as employers are working to differentiate themselves in a sea of hiring notices, benefits vendors are working to make their solutions stand out to employers. So many competing interests can make the process of selecting and finalizing a solution overwhelming: What do employees actually want, and what vendors will actually deliver it?
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The answers to these questions will be different for each employer, but the process to reach them is surprisingly consistent. As we’ve worked with employers and consultants to evaluate vendors and build health care solutions, we’ve observed that the most successful benefits plans always incorporate three foundational steps: customization, integration and measurement.
Here’s how you can incorporate this process into your 2022 benefits strategy to move beyond a traditional benefit plan and make a true impact.
Step 1: Customize
The benefits industry is uber-traditional in many ways — most TPAs still require members to fax in their documentation! But there is also a lot of innovation happening in smaller, more nimble companies, making it more feasible than ever to say “no” to an off-the-shelf plan.
Going fully custom requires context. Working on your own or with a benefits consultant, perform an in-depth analysis of your population. Human resources and benefits professionals already have a strong understanding of their company culture and the pain points of their employees. Document and formalize that knowledge with up-to-date surveys and analysis reports while digging deeper into benefits-related statistics like your highest health care cost drivers (working with a consultant or third-party vendor is the best way to get a snapshot of your population health data).
Once you have a strong understanding of your population’s needs, you can identify opportunities for impact. For example, an older employee base with a high rate of chronic disease will benefit from a stronger primary care solution, while a younger population that works remotely may be clamoring for a virtual behavioral health program. Keep in mind that a well-designed strategy will be built around solutions that promote employee well-being, which will ultimately drive down your cost. Working with an advisor or a source comparison site, you can narrow down vendors in each category by the services and features that matter most to you.
Step 2: Integrate
Cherry-picking your offerings can give you a strong, tailored solution — as long as all the solutions work in harmony with one another. To avoid overlap, unnecessary cost and disjointed delivery, you’ll need to focus your broader strategy on the integration of services. The easiest place to start is by reducing your number of vendor partners. While you don’t want prepackaged, one-size-fits-all solutions, you do want to find partners that prioritize appropriate in-house integration — so filter your search by vendors that provide at least two of your top opportunities.
Also be sure to avoid duplication of services by understanding each vendor’s full scope of services, starting with the program that will be your most significant investment. You may be getting more than you bargained for, in a good way. For example, employers usually select an advanced primary care solution because they need on-site health care, but more robust offerings also include behavioral health, second opinions, care coordination and virtual care. A vendor sourcing platform with vetted comparison tools can be useful here instead of simply relying on the messaging available on the vendor’s website. Understanding a vendor’s full capacity before adding new programs can save you thousands of dollars, reduce your management burden and streamline the employee experience.
If you’ve done your due diligence to whittle down the options and select vendors with services that don’t overlap, chances are they will be more than happy to work together. Consult the reviews on your vendor sourcing platform to glean information on best practices and successful partnership arrangements, and set up introductions and regular vendor integration meetings to facilitate strong working relationships, data sharing and outreach opportunities. We’ve seen over and over again how the success of each program — and by default, the overall benefits strategy — is amplified with the shared resources and brainpower of a cooperating team of vendors.
Step 3: Measure
Use the power of data to foster vendor accountability and refine the program approach. Perhaps the most important piece of advice we could give a benefits professional is to define your success measures upfront. Collaborate with organizational leadership to determine what concrete results constitute a successful program and justify continued investment or expansion. Common metrics include cost savings/ROI, clinical outcomes and member satisfaction.
Ask for referrals and read unbiased reviews about similar metrics presented to the vendors you select to evaluate the feasibility of your expectations and ensure transparency of your partner’s capabilities. Then share your final metrics with your vendors to work collaboratively to achieve agreed-upon goals. Many vendors will even place a percentage of fees at risk around the mutual program goals outlined in the contract.
Schedule quarterly check-ins with each vendor to evaluate program results and areas for improvement. Don’t wait until the end of the year or contract term to refine the approach; continuously improve through honest communication and collaboration. Continue to monitor vendor sites for any emerging new solutions and listen to feedback from other employers as your company culture changes and the benefits industry continues to innovate.
The process of selecting your benefits plan can be daunting. But with a focus on your people’s needs, a collaborative approach and clearly defined goals, you are well on your way to your best benefits year yet.
Sally Pace is CEO at The Granite List, and Christi Coleman, EVP Employer Engagement at Proactive MD.
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