Personalization In Benefits Administration: Tailoring Packages To Individual Needs
Employee benefits have been an important element of salary negotiations for many years now. Offering employees more than just a paycheck can be very valuable. Benefits help to keep employees more grounded in their careers and are a great gesture from organizations to show how much they appreciate and value their employees.
However, it can be common for businesses to apply more of a “one-size-fits-all” approach to their benefits administration. Although there is nothing wrong with offering a more standardized benefits offering, many modern workers have developed more unique needs over the years.
Recognizing and responding to these needs and working to add more personalization into your employee benefits packages can lead to a much more satisfied and engaged workforce.
The Limitations of Some Traditional Benefits Packages
Not all employers offer the same benefits formats to their employees. There is a lot that goes into budgeting and planning for employee benefits, and each company will have its own set of priorities they want to focus on.
That being said, many organizations adopt a relatively standard format of offering a set of healthcare coverage options, retirement savings plans, and life or disability insurance coverage on occasion. All of these are great options to explore for your employees and can add a great deal of value to them. However, while this approach may be a sufficient effort for many businesses, not all employees will respond the same well to a templated benefits offering.
Today’s workforce is evolving, as are the lifestyles and needs of the individuals who make it up. This means that healthcare needs, scheduling needs, financial priorities, and family structures vary considerably from one person to the next. Because of this, your benefits may not check off all the boxes they can to keep your employees fully engaged in their roles and willing to stay with the company long-term.
Advantages of Providing Personalized Benefits Offerings
Taking the time to create more personalized benefits offerings can offer a range of benefits to organizations. Some of these include:
Improved Hiring and Retention - Today’s job seekers have more options available to them than they’ve ever had before. With the popularity of remote working arrangements, employees aren’t limited to their own geographies and can engage employers all over the world. Offering personalized benefits packages is one important business that can help them to stand out to a wider range of candidates. This also makes it easier to attract a higher tier of talent and can significantly improve staff retention rates as well.
Increased Employee Engagement - Offering employee benefits is a great step forward when trying to show your staff how valuable they are to the business. However, when you show them that their own personal needs matter to you, it can create a strong sense of connection and loyalty between individuals and their employers. Personalized benefits offerings with more options and flexibility are the perfect way to show this. It can lead to a more positive attitude at work, which translates into improved team morale and a less toxic working environment.
Better ROI - There is an important balancing act that companies need to make when investing in employee benefits. Although traditional benefits are a “safe bet” for most businesses, if you’re not careful, you could be seeing a negative ROI when it comes to usage. It’s critical to make sure that the benefits you put in place for your employees are being regularly used. Personalizing your offerings or providing
Key Components of a Personalized Benefits Program
Creating a personalized benefits program does require more than just offering more options to employees. It also requires careful planning and a willingness to work with employees to ensure they’re getting the most value out of what’s available to them.
Three key components of a personalized benefits offering include:
A Diverse Benefits Portfolio
Part of creating a personalized program is offering a wider range of options. All of the options should carefully consider employees' needs and preferences.
This might include providing traditional options like health insurance and retirement plans as well as alternative benefits like mental health services, financial wellness programs, flexible work arrangements, or professional development opportunities.
Decision-Support Tools and Resources
Employees need the right tools and resources to navigate all of their benefits options. Employers should consider providing access to interactive decision-support tools and online coverage calculators to help their employees choose options that best suit their family needs.
Another great option is to provide employees with access to benefits call centers that can help provide more personalized support when deciding how to choose their coverage.
Clear Communication and Education
Effective communication is crucial to the success of any benefits program. Employers need to clearly communicate the available options and the value that each benefit provides. Ongoing education and support should be provided to ensure that employees understand their choices and can make the most of their benefits package.
Effective Steps for Implementing Personalized Benefit Packages
If you’re interested in designing a more personalized benefits offering for your business, here are a few important steps to follow:
Complete a Needs Assessment - Don't assume you know what your employees want. Gather helpful data through surveys and employee interviews to understand their needs and priorities. Comb through your demographic data and consider factors such as age, family status, and lifestyle to identify the most valuable benefit types to offer.
Prepare a Budget - Personalized benefits don't have to break the bank. Determine a realistic budget that aligns with your company's financial goals and allows for flexibility and growth. Explore different funding models and consider cost-sharing options with employees. Remember to factor in the potential long-term cost savings associated with increased employee engagement and retention.
Choose the Right Technology Partner - When designing a comprehensive benefits program, it is important to choose the right technology partner to help you see it through. Some technology providers may limit your options by restricting you to certain carriers or products. When creating a more personalized offering for employees, you’ll want to select a technology partner that offers the most flexibility so that your unique plans can be built within the system without clunky workarounds and complications.
Add More Flexibility to Your Benefits Offerings
Personalizing your benefits offerings can be a great way to show employees how much you value them as part of your organization. By following some of the guidelines provided, you’ll be sure to not only enable more customization to your benefit packages but also do so sustainably while helping your business grow.
Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm a leading provider of employee benefits solutions, Frank has built the business by bridging the gap between insurance and technology-driven solutions for brokers, consultants, carriers, and employers nationwide.Image located below