According to a 2015 study from SHRM, 85% of companies leverage healthcare benefits to recruit employees. This means the organizations you’re competing against for talent are actively promoting their healthcare plans and programs as a reason to jump ship. If you’re not providing a solid benefits package—or worse, you don’t know how your benefits package stacks up—you could lose some of your most valuable resource -- your people.
That’s why it’s essential to conduct a benefit plan design comparison at least once a year. By effectively analyzing your benefits plan, you can identify areas of weakness and fill the gaps before your employees start to turnover.
In order to effectively run a benefit plan design comparison for your organization, there are a few key areas where you need to focus your time, energy, and effort.
- Understanding Your Population’s Biggest Wants and Needs:
The first step in any plan design analysis is gaining an understanding of your population’s current satisfaction with their benefits plan. You can leverage employee feedback through surveys and yearly reviews to gauge your overall employee satisfaction with your benefits package.
However, you can also gain valuable insight into your competition along the way. It’s likely that the majority of your team has come from organizations that you actively compete with for talent. With this in mind, you have a sea of knowledge in your organization about what benefits packages are being offered at other companies. Tapping into this knowledge is often as simple as asking. When running an employee survey, you can ask questions such as:
- How does our benefits plan compare to the last company you worked for?
- Do you pay more or less for your healthcare out-of-pocket than you did in your last job?
- Are you more or less satisfied with your current benefits package than the package you had two years ago?
These questions provide dual benefits of both gauging current employee satisfaction and providing insight into what sort of benefits you’re competing within the marketplace.
2. Benchmarking Your Health Coverage Against Similar Organizations:
Once you understand your team’s satisfaction levels with your current benefits package, you can dive into benchmarking your plan against similar organizations. High-level benchmark reports are easy to find online and can provide effective direction at a 30,000-foot view. If you want to dig deeper, however, you’ll need a tool with a finer point.
Solutions like Springbuk’s Intelligence platform equip you with an efficient benchmarking feature to see how specific details of your benefits plan stack up. This allows your leadership team to see how your current benefits offerings compare to organizations like your own. Moreover, these benchmarking tools can compare health costs and claims, meaning you can also identify areas where your spending diverges from your competition.
You can leverage these findings to provide validation to your leadership team in your current health management investments and justify expansion where relevant. For example, if you notice that you’re spending more than other organizations like yours on tier 3 pharmaceuticals, you can make the argument that an investment in an employee engagement solution to promote generic equivalents would make financial sense.
3. Running a Benefit Plan Design Comparison of Various Coverage Options:
Finally, once you have assessed your team’s satisfaction and compared your benefits to other organizations like yours, it’s time to start running hypothetical benefit plan design comparisons. Again, this is a process that can be extremely cumbersome and costly without turning to an intelligent solution like Springuk’s Health Intelligence platform to put your data to work for you.
In order to adequately determine the optimal use of your healthcare dollars, you need to see what various plan scenarios will look like for your population. This requires a plan design modeler that is built to analyze your population based on actual health claims and forecast future spend. This allows you to model dozens of benefits plans, compare them side-by-side, and make the best decision for your specific population.
See how Springbuk’s Health Intelligence can help you simplify your health management decisions and more meaningfully direct your resources for the highest impact in your employee population.