Is your benefits ecosystem interconnected? It should be (and what happens if it’s not).

Think about this: When is the last time you heard of a company offering all employment benefits from a single vendor? These days, it just doesn’t happen. Most companies, knowing how important benefits are to employees, provide multiple benefits offered by several different vendors. This is the benefits ecosystem. And in order to maximize gains, reduce waste, and make benefits as valuable as possible for employees, interconnectedness within the ecosystem is critical. 

Per recent Forrester research, 66 percent of employees interviewed said that benefits programs were a differentiating factor when deciding to join a given company. Further, the iCIMS Hire Expectations Institute found that 66 percent of people who are currently employed are open to new job opportunities with better salaries and benefits. If someone else’s benefits ecosystem is functioning better than yours, your organization could be at a hiring and retention disadvantage.

Benefits offerings at a given company can include everything from health, life, and disability insurance to retirement savings and transportation benefits to HRAs, telemedicine, transparency tools, employee wellness programs, child, elder, and even pet care—and more. In fact, most Fortune 500 companies have between 10 and 30 vendors providing these important services and products. 

When these vendors function as silos—when there is no real link or connection between them—at best, there are missed value opportunities, and at worst, there is the risk of confusion, redundancy, and wasted opportunities.

Without interconnectedness, benefits may go unnoticed or unused by employees who could use them most. Small missed opportunities add up to big losses in satisfaction and retention as people fail to see value provided by their employer.

A platform that can recommend specific benefits to specific employees, like the “customers like you also bought…” functionality seen on shopping sites like Amazon, can unlock this value by interconnecting the ecosystem and directing users with individualized prompts at highly specified moments in their lives. What do you think? Is your ecosystem interconnected?

 

 

[1] ″Employees Don't Know What Benefits They Are Missing, But Predictive Analytics Can Help″ Forrester Consulting, 2016.

[2] Braunsdorf, G. (2015, December 22). The Correlation Between Benefits and Employee Retention.