Using Analytics to Help Clients Structure Best-Fit Benefits Plans
It’s important that employers have a strong understanding of past benefits usage, gauge employee interest in certain types of products and be aware of market trends. This will allow them to create benefits plans that are well structured and fit their needs. Analytics and benchmarking provide the information needed to help accomplish this.
According to a recent survey of HR professionals commissioned by Equitable and conducted by Arizent Research/Employee Benefits News, clients are looking to their broker to provide guidance in understanding their data and using it to make smarter benefits planning decisions.
• Almost 40% of respondents say that analysis of their benefits usage and trends would be the most helpful way their broker can support them in the next 3 to 6 months.2
Here are 3 key actions brokers can take to support their clients’ data needs
1. Conduct a Technology Audit
Reviewing a clients’ benefits technology can help brokers better understand what analytics tools they have and where there are opportunities to be better integrated into all benefits processes.
• Only half of respondents report using benefits data analytics tools across enrollment stages1 so there is clearly potential to expand in this area.
• 2/3 of those that use these tools say that they have the ability to be integrated with other systems, presenting an additional opportunity for streamlining.1
Brokers can help close this gap by showing their clients how to best utilize and integrate benefits analytics tools for a streamlined, decision making process.
2. Seek Employee Feedback
Employee surveys are another strategy that can help provide insight to enable more effective benefits planning; however, only 1/3 of employers reported they are currently taking advantage of this.1
Many employers may not know how to go about conducting such a survey and could use the advice of their broker regarding what questions to ask and the right time to reach out to their employees.
As one respondent shares:“We could be better in touch with employees to see if they suggest any improvements to the current package offered.”
3. Assess Past Enrollments
Employers who report being effective throughout all enrollment stages are more likely than those who feel they are less effective to have conducted a post-enrollment analysis.1 Additionally, 1/3 of respondents report that they plan to conduct further reviews of benefits usage and data for future decision-making. 2
Brokers have an opportunity to provide expertise in helping their clients analyze and derive actionable insights from their enrollment data. For example, brokers can show their clients how to use this data as an early indicator of changes that may need to be made during the next enrollment period. They can also work with their clients to integrate these analytics into their broader employee benefits technology systems for a more streamlined experience.
For more information on benefits solutions, please check out the other content available at https://www.employeebenefitadviser.com/benefit-technology-resource-center
For integrated technology solutions available from a trusted partner, visit www.equitable.com/employeebenefits
1 Survey 1, 2020: In April/May 2020 Arizent/Employee Benefit News conducted an online survey (commissioned by Equitable) among 302 HR professionals at organizations with 10 to 500 employees and 2019 gross receipts of $250,000. Qualifying respondents have benefits decision-making involvement at organizations that have been in business 2+ years.
2 Survey 2, 2020: In July 2020, Arizent/Employee Benefit News conducted an online survey (commissioned by Equitable) among 100 HR professionals with benefits decision-making involvement at organizations with 10 to 500 employees. Employers had to offer dental, vision, life, short-term disability, long-term disability, critical illness or accident insurance.
Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with main administrative headquarters in Jersey City, NJ; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN). All group insurance products are issued either by Equitable Financial or Equitable America, which have sole responsibility for their respective insurance and backed solely by their claims-paying obligations. Some products are not available in all states.
GE- 3267326 (10/20) (Exp. 10/22)