Customization and personalization
One trend in employee benefits is the move toward personalized and customizable benefits packages. Employers are realizing that one-size-fits-all benefits packages no longer meet the diverse needs of their employees. As a result, more companies are offering a variety of benefits options for employees to choose from, allowing employees to customize their benefits packages to fit their individual needs and preferences.
In today's environment, employees not only prefer, they expect a customized benefits experience. Employees appreciate when information and options are tailored to their personal lifestyles and preferences, and they demand a more tailored approach. Statistically, six in ten employers (seven in ten large companies) feel that their employees are somewhat or very likely to expect more diverse benefits options in the future.
For example, some companies offer financial wellness, specialty pharmaceuticals, mental health resources, women's health solutions, and more. Increasingly, companies are offering personalized benefits packages that allow employees to choose the benefits that are most important to them and their families. Employees are prioritizing the management of mental and behavioral health issues, and it's important for employers to offer benefits solutions that address these priorities.
Simplify
Not surprisingly, health care and other employee benefits are incredibly complex. Adding layers of customized, personalized benefits often directly contradicts the notion of simplicity. So you need to give your employees the support, resources, and tools they need to simplify their overall experience for where they are today. This means providing access to plan information, health solutions, provider information, advocacy, navigation, and other critical “real-time” support, not just at enrollment but throughout the year, to help avoid burdening overworked and understaffed in-house benefits teams.
With user-friendly platforms and tools, employees can easily navigate their healthcare options, make informed decisions, and efficiently manage their benefits online. Empowering employees with easy-to-use tools reduces confusion and frustration, resulting in a better overall experience.
Many employees may not fully understand all of the benefits available to them or how to get the most out of them. By providing regular communication and educational resources, companies can help employees make confident decisions about their benefits, ultimately increasing satisfaction and engagement. Omnichannel communication is the best way to go. Some employees want to receive paper materials, others prefer SMS or an online microsite, and still others prefer a website or mobile app. Some want to speak with a person who can help them with their benefits in person, while others prefer a virtual chat. Participants want support the way they want, and most importantly, when they need it (24/7).
As the world of healthcare becomes more complex and more point solutions pop up, stakeholders need a one-stop, simplified shop.
Leveraging technology and AI
One of the most significant changes in employee benefits is the increased use of technology to deliver benefits and rewards. From digital wellness platforms to virtual counseling services, technology is revolutionizing how companies deliver benefits to their employees, not only making them more accessible and usable for employees, but also allowing for greater customization and personalization.
The rise of data analytics in the workplace has enabled employers to better understand their employees' wants, needs, and preferences and customize their benefits packages accordingly. By analyzing data about employee benefits usage, employers can identify trends and patterns and make informed decisions about what benefits to offer and how to best meet employee needs.
AI will soon play a key role in benefits administration. AI is being used to not only simplify the participant experience but also make client interactions with benefits programs and their management more efficient and powerful. AI is transforming the way employers communicate and engage with employees about benefits. Chatbots provide 24/7 support for open enrollment, new hire onboarding, and life event inquiries. Employers who can provide valuable benefits to employees through efficient technology without passing on the costs will have an advantage because today's employees expect a user-friendly digital format for benefits delivery.
Leveraging decision support tools, plan comparisons and individual employee input, the AI analyzes participants' responses to questions about utilization and risk tolerance, along with key underwriting statistics like age and gender. This personalized approach helps individuals “right-size” benefits and tailors recommendations to each participant's unique needs and preferences, simplifying a often confusing decision-making process during the enrollment period.
Enhanced personalized guidance
Participants want to be guided and supported along the way – without having to make multiple phone calls. They want personalized guidance, whether it's choosing the right plan, finding a doctor, disputing a claim, getting a second opinion, or simply reviewing benefits available to them. Two of the main obstacles that prevent employees from making informed decisions about their benefits are difficulty accessing information and difficulty understanding the details provided. To overcome these obstacles, you need to partner with the right benefits management and engagement technology provider.
Personalized guidance can take many forms, from one-on-one consultations with a benefits specialist to online tools and resources that help employees assess their needs and make informed choices. By customizing this guidance to each employee's individual needs and preferences, companies can maximize the value their employees get from the benefits available to them.
In addition to helping employees make better decisions about their benefits, personalized guidance can improve employee engagement and satisfaction. When employees feel supported, they are more likely to feel motivated and productive at work. By helping employees make sense of the complex world of benefits to make informed choices, companies can increase employee satisfaction and engagement.
Affordable
As healthcare costs rise, employees are looking for cost-effective, affordable benefits. According to Aptia's latest open enrollment insights, annual healthcare copayments have increased by an average of 4% compared to 2023. For low-wage workers (over $30,000), up to 29% of their salary is spent on family healthcare costs. Combining these two statistics, for employees making less than $30,000 per year, increases in employee copayments will wipe out roughly 1.2% of annual wage increases. Therefore, it may not be surprising that, according to our decision support tool, 79% of respondents have little or no confidence that they can afford costs not covered by their plan.
Employees spend an average of 5% of their salary just on benefit contributions, before incurring out-of-pocket medical costs.
Through Aptia, we have found that consumers are increasingly concerned about their ability to pay for out-of-pocket expenses, making it crucial to encourage low-income workers to use decision support tools through employee engagement strategies.
Overall, the future of employee benefits management is bright, with a tremendous opportunity for companies to create innovative and compelling benefits packages to attract and retain top talent. By embracing personalization, technology, non-traditional benefits and a holistic approach to employee benefits, companies can build benefits programs that not only meet employee needs but also enhance the overall employee experience. Looking forward, companies that make employee benefits management a priority are more likely to see increased employee satisfaction, productivity and loyalty, leading to long-term success and growth.
Employers that can adapt to these changing trends and offer benefits that meet the evolving needs of their employees will be in a better position to attract and retain top talent in the years to come. By investing in comprehensive, innovative benefits programs and the underlying services and technology to effectively manage and deliver them, employers can create a competitive advantage and increase employee engagement and productivity.
Jeff Williams, President and CEO of Aptia US
