Welcome To The Era Of Custom-Curated Employee Benefits

The post-pandemic new normal

As we’ve been experiencing since March, the coronavirus pandemic has been creating a “new normal” for just about every facet of our lives. In the workplace, it’s pushing a major shift in our attitudes, needs and priorities and, in turn, what we – as employees – expect of and will most value from our employers.
 
It’s really turned up the pressure on Human Resource Managers to figure out the best way to respond with even more limited resources. A good starting point might be a re-evaluation of existing benefits portfolios. How we position benefits is part of the problem, one that reduces the perceived value to employees.
 

While we, HR experts, get bogged down in the details (the what’s, where’s, when’s) of deductibles and carrier networks and OE dates, we lose sight of the whys and how’s of “this will save you three hours” and “using this tool will save you $1,500” and “clicking this button will instantly send the same tool to your spouse.” The value that employees need to experience lies in how effectively you personalize and communicate the benefits.
 
We are shifting to an era of custom-curated employee benefits. This is a data-driven benefits strategy that allows you to dig far deeper into your workforce profile than generational segmentation to understand benefits usage patterns. You can now seek what’s important and respond to those needs with a bespoke offer. The portfolio meets people where they are at. Here is how to look at it: 

Who Comprises Your Culture?

It’s instrumental to chart the different groups of people and personas in your workforce – each in a different life or career stage. A typical workforce often includes:
 

• A new hire, in her early 20s and just a year into the job, is probably still on her parents’ plan and more concerned with learning new systems and finding a mentor than learning her medical options.
• An older employee, also a recent hire, with years of technical experience who doesn’t need to know deductibles or networks, but really wants to engage in the wellness program for extra savings on their contribution. 
• The group that is often overlooked. We call them the “Forgotten Middle.” They aren’t the new hires nor are they the founders of the company. They are 35 to 60 with 5+ years of service. Believe it or not, they are the largest part of most employers. They are the largest part of your medical claims and preventable issues. Through the force of inertia, they are also the least likely to engage to make different choices and better control their costs. They should be the priority for a benefits professional interested in reducing costs.  

Applying Data Analytics

Your population has most certainly changed since COVID-19. Between the numbers and the behaviors, you should improve your understanding by applying data analytics. Opportunities for sharpening benefits to your new employee demographics will also allow you to reframe how value is communicated. For example:
 

• With a lack of personal savings, much of the US population is financially fragile. To many, a $20 increase in monthly medical contributions might be at the expense of a bag of groceries or a payment on an electric bill. Many may live in a food desert, with no grocers nearby or without access to reliable transportation. This could exacerbate acute and chronic health issues. Analytics could identify how much of your population is in this category, how that has changed in the preceding 12 months, and what benefits might help directly address them.
• Since COVID-19, more focus has been on closing gaps for disability and life insurance. We’ve seen gaps in long-term disability benefits – typically for higher paid or commissioned/bonus employees – closed through a quick review of data. This is more of a concern now than pre-COVID. 

Figuring Out What Else Has Value

“Softer” benefits and perks can be factored in that appeal to specific groups. Most of these access benefits don’t cost an employer anything. Who can argue with easier access (perhaps with discounts) to auto, homeowners or renters insurance? Pet parents are a significant and vocal cohort and access to insurance is a high priority for them. For all, access to college loan debt refinancing programs or short term debt may be needed at just the right time.
 
Whatever your post-COVID-19 reopening strategy, make it a priority to align your people strategies, processes and technology with the changed population. The new normal requires a different tact to address the communication of benefits. We know we are all in this together, but at some point soon, the company must address the sacrifices that employees took from a benefits perspective. Repair and restoration of those slashes, freezes and cuts will be crucial to a return to normal. So will be an emphasis on the new “soft” benefits. Doing the hard work now will ensure everyone is properly positioned for this new world.  

Jeffrey Faber is the Chief Strategy Officer for the HUB International Employee Benefits Practice and manages Employee Benefits for the Central Region. In his 20+ years of broad-based consulting, which ranged from pension actuarial work to executive compensation to HRIS and healthcare, he learned that the success of an employer’s benefits offering is unique to a workplace and deeply interconnected to culture, company branding and individual talent.  He is also responsible for the development and execution of cutting edge cost-containment, risk-reduction and employment-enhancing initiatives.    Connect Jeff Faber Follow @HUBInsurance