Employers are in the midst of evaluating their benefit plans, preparing for another surprise. Will the cost of their benefit plans go up again? And if so, by how much? Increased financial pressures beg the question, “Is it time to change our benefit plans?”
The average employer now spends over $7,739 annually for a single employee and $22,221 for family coverage. But, as employers watch healthcare costs rise, do they know what they are paying for and how it impacts their organization?
In our Mission to More series, we discussed how employers support employees with well-being benefits and a human touch, offering a holistic package for a spectrum of employee health needs. In addition, we’ve provided information on innovative solutions, improved price transparency, and the untapped potential of benefits data analytics for employers.
However, having all the tools at your disposal will not tell you when to make a benefit plan change. You will need to look for indicators inside and outside of your company to identify what your employees need and ensure that it aligns with your company’s value proposition.
As our business environment continues to change, we can see shifts that challenge leaders to think differently about their employees and the benefits they desire. Before companies make changes to their benefits offerings, they should ask new questions and define new outcomes. For instance:
- Do our benefits enhance our recruiting and retention efforts? Do they impact our tenure?
- Do our plans reflect both our corporate and employee values for respect and well-being?
- Can our employees afford the plans we offer, or will they seek another employer with more affordable plans?
- Are our benefit plans optimized for our budget and for utilization?
- Do our benefits help our employees carry out our value proposition to our customers and support our corporate mission?
High-performing companies invest in their people, having established metrics to evaluate the success of their program. Leading companies develop measurable outcomes, holding their carriers, consultants, and themselves to an organizational ROI, using these metrics to drive strategic C-suite conversations.
Knowing when to change plans is not often straightforward. Given today’s volatile business environment, inflation, and continued tight labor market, making changes to benefit programs is an ongoing journey, not a once-and-done event.