Employee benefit brokers know that their market is an intensely competitive one, and a shift to a more employee-centric model for benefits administration technology and services is quickly gaining steam. With it comes added pressure to keep pace or risk losing business, wallet share, and chances to gain new clients.
Across the board, employers and brokerages are reducing the quantity of partners they rely on to deliver the administration, benefits, and technology required to meet the demands of this emerging benefits business model. Comprehensive options reign, but there are also three main qualities that are crucial to remaining competitive:
- A wide variety of benefit options that support and care for the employee as a whole – along with knowledgeable support services around those benefits
- A modern and intuitive user experience (for both the employee and the benefits administrator)
- Effective and efficient employee-specific communication about the benefit options, helping to drive employee understanding, engagement, appreciate, and ROI
The New Benefits Model 101
The primary shift that is taking place in HR systems is one of perspective, away from the needs of medical claims payors and HR processes, and toward the needs of the employee. Additionally, less focus is being placed on the traditional core benefits, like medical, dental, and vision benefits.
Momentum has been building in this direction for a while now, but with COVID-19 the movement has accelerated to the point that it can no longer be ignored. The pandemic has forced employers to focus in on providing benefits that are easier to access and support the employee in a more holistic manner.
Emphasis has generally shifted toward providing benefits that center around the needs of the employee and benefit platforms that improve the lives of the employees more generally. Beyond obvious improvements like making the employee portal more user friendly, the very substance of the benefits that are being provided is changing. Larger organizations are trying out wider portfolios of benefits and tools for their employees, including anything from mental health, physical fitness, or even financial wellbeing. This switch in perspective has initiated a reimagining of the entire structure of benefit options, blurring traditional lines between benefit categories and shaking up old conceptions about employer responsibilities regarding employee benefits.
What’s In Vogue? Voluntary Benefits
The demand for integrated healthcare benefits is growing rapidly, pushing voluntary benefits into the spotlight. Previously seen as the sidekick to primary benefit options, the day has finally arrived for voluntary products. They are now at the cutting edge of an arms race as competition heats up for employers and brokers to transform their offerings to resonate with younger workers and deal with the consequences of the COVID-19 pandemic. According to an analysis of the employee well-being landscape by The Starr Conspiracy, investment in employee well-being shot up more than 500% in the year 2020 from 2019.
The new benefit smorgasbord has expanded to include:
- Financial planning and counseling
- Student loan repayment
- Lifestyle flexibility
- Lifestyle benefits
- Community focus
- Flexibility in workplace and hours
- Increased representation in the company’s mission and values
- Support for non-traditional and multi-generational families
Decisions, decisions
So, what is a benefits broker supposed to do amid all this calamity and upheaval? How can you know heads or tails when looking at prospective partners? We mentioned before that the market is trending sharply in the direction of utilizing fewer, and more comprehensive, partners to deliver the administration, benefits, and technology for this incoming benefits model. Let’s revisit those three crucial characteristics of a benefits partner:
- A wide variety of benefit options that support and care for the employee as a whole – along with knowledgeable support services around those benefits
- A modern and intuitive user experience (for both the employee and the benefits administrator)
- Effective and efficient employee-specific communication about the benefit options, helping to drive employee understanding, engagement, appreciate, and ROI
You might ask, is there really any employee benefits administration/employee engagement software that is integrated and automated enough to reach this new bar? If so, what key elements would you need to look for to identify it? As it turns out there are many, but what makes or breaks any solution is its ability to communicate effectively with the employee and meet their needs. The right information needs to be provided to the right employees at the right time, otherwise no program or initiative will succeed.
Here are some tips to help you sift through the assortment of options:
- Take the time to find a solution vendor that will support employers to really connect with their employees. Keep in mind that approximately half of all employees rate themselves as either unsatisfied or partially satisfied with their current benefit options.
- Yet again, communication is key. Try to find a platform vendor that provides integrated engagement software to create personal and impactful communications and an intuitive enrollment experience.
- Finding a partner that has a wide variety of benefit options is ideal, but you should also ensure that they have the technology in place to manage all of an employer’s benefit plans, regardless of complexity.
- On the benefits administration side, you want to find a partner that has the technology available to allow HR teams to access benefit information in a centralized location and at the touch of a button. Look for something that can manage electronic document storage, life events, eligibility, compliance, and demographic changes all in one place.
- The user experience for the employees and administrators goes far beyond having a pleasant interface. Make sure your partner can manage the large and often quite complex configurations and benefit business rules that employers require.
- Ensure early on that your technology partner comes with a dedicated and highly experienced customer service team that will work with your clients throughout the setup, implementation, and maintenance of their benefit options.
- Lastly, go with a partner that offers an experience that employees can access around the clock without forcing them to download yet another mobile app.
Finding benefits administration technology vendors that cover all three bases can be quite difficult. Many are strong in one or two of those critical areas, but brokers who aim to position themselves as trusted advisors will be required to find partners that cover all three and with expertise. This is a tall order, but if you take your time and follow the advice provided in this article, you will be well on your way.