3 Ways Top Companies are Optimizing Benefits During OE 2023. Are You?

“I see a pattern during open enrollment,” says Amy Crane, Vice President of Voluntary Benefits at Pet Benefits Solutions.

“The same questions come up again and again when I talk to my most high-performing clients.”

Success doesn’t happen by accident. The most effective companies leave nothing to chance. They develop metrics to evaluate their success in every area. Then, they hold themselves and all their partners to those outcomes.

Benefits and carriers are no exception. Pet Benefits’ best clients ask pointed questions, going beneath the surface to understand our plans’ value. Here’s what’s uppermost in the minds of top companies during OE 2023:

1. Are our benefits plans optimized for our budget?

Inflation, at a 40-year high, affects every business. From increased overhead to higher interest rates, costs are up. Factor in decreased consumer spending and it’s a struggle to maintain steady revenue.

Benefits costs rose, too. From 2021 to 2022, the employer portion of employer-paid healthcare benefits rose by 3%. Now, it’s projected to grow 6.5% in 2023, according to Aon, a leading global professional services firm. And that’s just one example.

Given the economic reality, companies are keeping their budget top of mind as they tweak their benefits offering. There’s simply not much wiggle room.

“Companies are committed to providing valuable benefits for their employees," says Amy. “But they’re concerned about keeping the benefits affordable for themselves. They’re asking hard questions about cost.

“I love telling them about Wishbone and Total Pet Plan, which are completely employee-paid. Businesses get the best of all worlds: a voluntary benefit that both employees and the CFO love!”

Cost-cutting strategies:

• Know your budget and stick to it.
• Don’t be afraid to negotiate with carriers.
• Expand your offering with popular but employee-paid benefits.

2. Are our benefit plans optimized for retention?

Is the Great Resignation slowing down? Maybe, but it’s not over yet. Retaining talent is still a high priority for employers.

According to Workforce, 19% of employees say they would stay at their organization if it offered better benefits. But what makes a benefit “better?” It’s subjective, but these are questions employees may ask about voluntary benefits:

• Do the benefits match their lifestyle?
• Are the benefits understandable?
• Does the plan offer options?
• Are the rates affordable?

“This year, especially, I hear a lot about affordability,” says Amy. “Employees are also affected by inflation! And HR is all too aware that employees who don’t like their benefits will look for better ones with a different employer.”

Benefits are only one factor of many that affect retention. But the link is strong enough that successful companies are tracking it.

Retention strategies:

• Survey employees about the benefits they want.
• Reach out to employees who aren’t signing up for plans.
• Choose benefits that offer maximum value at an affordable price.

3. Are our benefits plans optimized for inclusion?

Having employees sign up for a voluntary benefit is only half the story. What happens during the 12 months AFTER open enrollment? Are employees using the benefit to its maximum value?

Benefit utilization ties into diversity, equity, and inclusion (DEI). Are all employees getting value from the benefit? And as we move into 2023, top companies are doing more than talking about DEI. They’re using data analytics to track demographics and uncover disparities.

“As companies focus on DEI they want to know if their benefits work for their entire employee population or if some demographics are being left behind,” explains Amy.

Voluntary benefits vary widely, but inclusive plans share key features:

• Clear communications from the benefit plan
• Online member portal
• Easy access to customer service
• Options for diverse families

The more accessible the plan and the plan materials, the more employees will benefit from it.

In addition, the more relevant the benefit, the more employees will enroll. Relevance is relative, however. For Baby Boomers, health benefits are paramount. Gen Zers prioritize financial and mental health benefits. Pet parents, a growing demographic, look for pet benefits. An inclusive benefits offering includes benefits that are relevant to the full spectrum of employee needs.

Inclusion strategies:

• Use diverse channels to reach out to employees about benefits.
• Include benefits that are relevant to employees across demographics.
• Look for inclusive features when choosing new benefits.

“Pet benefits are one of today’s fasting growing benefits,” says Rachel Ostreicher, PBS Chief Operating Officer, “But not all pet benefits are created equal. Total Pet Plan and Wishbone offer the best in accessible pet benefits that every employee can easily understand and use.”