Traditionally, benefits have been seen as a cost of doing business that was necessary but not always fully appreciated or valued. However, as the War for Talent intensifies and employees become increasingly discerning, benefits have emerged as a key differentiator. Organizations that offer comprehensive, personalized benefits packages are better positioned to attract and retain top talent. Among workers actively searching for a new job, 41% say better benefits would cause them to change their mind and stay with their current employer, according to the 2024 Alight International Workforce and Wellbeing Mindset Study.
Despite the growing importance of benefits, many organizations struggle to navigate the complex benefits landscape. With so many options and providers to choose from, it can be difficult to create a benefits package that meets the unique needs of each employee. At the same time, many employers are finding utilization of benefits to be woefully low. While three-quarters of workers utilize their employer-sponsored retirement savings plans, just 66% use their employer-provided health benefits. That number falls to 37% for mental health benefits and 40% for wellness programs.
That massive investment the company is making in the workforce isn’t even coming close to creating the intended return on investment, leaving HR struggling to justify the continually increasing expenditure to the C-suite.
Clearly, the answer is not to slash the benefits budget. That would be catastrophic, especially in today’s employment environment where workers have made it clear they expect employers to provide a full complement of benefits that supports them in their quest for total wellbeing. Cutting back on benefits would make it exceedingly difficult to attract and retain the workers needed to drive business success.
Mapping the path forward
Determining what changes must be made to attain this level of transformation requires companies to assess the current state of their benefits strategy and offerings. This can be accomplished by answering several key questions:
- Are we moving the talent needle with our benefits spend? Where should we pull back? Where should we double down?
- How effective are our benefits? Are they attracting the right skills? Driving loyalty? Productivity?
- Do our employees find personal relevance in the benefits we offer?
- How do we meaningfully increase benefits engagement?
- How do we take the friction and frustration out of dealing with complex events for our employees?
- Do we have the same ability to analyze benefits as we do for other parts of the business?
Companies that take a deep dive into these questions with the goal of driving true transformation are taking the crucial first steps towards gaining a benefits advantage. What exactly does that mean and how will it benefit employees—and the business—going forward?
Gaining a benefits advantage means unifying often disparate benefit point solutions into one user-friendly digital experience; enabling better, smarter decisions with AI-powered personalization and leveraging data and analytics to realize the impact of benefits investments. However, technology is merely the enabler. The guidance, empathy and high-touch support delivered by highly trained consultants is a key component of this technology-enabled strategy. Providing such assistance anytime, anywhere via phone, email or chat enables employees and their families to navigate the simplest or most complex issues—from appointment setting and provider recommendations to procedure cost estimates and coordination of care.
This enables employers to eliminate the forced choice between delivering a better experience and achieving greater efficiency by replacing the status quo benefits model with one that prioritizes employee experience, streamlines administration and drives business outcomes.
From artificial intelligence to machine learning, technology will play a critical role in this new benefits model. Organizations will also need to leverage data and partner with benefits providers, consultants and other stakeholders to provide them with the expertise, guidance and support they need to succeed.
Looking to the future, it's clear that benefits will continue to play a critical role in the War for Talent. Employers that offer comprehensive, personalized benefits packages will be better positioned to attract and retain the top talent that will be crucial to their success. Embracing this new data-driven, tech-enabled benefits model will empower organizations to transform benefits into a game-changing differentiator and give them a true benefits advantage.
