Why Review Your Benefits Plan?

A robust employee benefits plan not only promotes the well-being of employees but also fosters a more engaged and productive workforce. Serving as a pivotal component of the overall compensation package, a well-crafted benefits plan is instrumental in attracting and retaining top talent, thereby enhancing your organization’s competitiveness within its industry.

However, the true advantages of employee benefits may remain elusive if the plan is not subjected to regular evaluation to ensure its effectiveness. Regularly reviewing your group benefits plan stands as a vital measure in maintaining its efficacy. Through consistent evaluation of the plan and its performance, you can ascertain that it:

  • Remains cost-effective.
  • Provides employees with suitable coverage that aligns with their needs and usage.
  • Continues to align with your organization’s goals and benefits philosophy.
  • Optimizes benefits to adapt to evolving needs and challenges in the workplace.

Given the dynamic nature of workplaces, it is imperative to conduct periodic reviews of your benefits plan to ensure its alignment with organizational objectives.

Four-Step Review Process

Step 1: Review Claims Experience and Demographics

Begin by evaluating the Claims Experience and Demographics of your employees. Employers should take several key steps to ensure that their employee benefits plan remains effective and aligned with the needs of their workforce:

  • Analyze claims data to identify trends and cost drivers.
  • Assess health risks within the workforce.
  • Evaluate demographic information to understand employee composition.
  • Tailor benefit offerings based on analysis findings.
  • Engage employees to gather feedback.
  • Monitor regulatory compliance.
  • Establish ongoing evaluation processes.

By following this step, employers can conduct comprehensive reviews of claims experience and demographics to inform strategic decision-making and ensure that their employee benefits plan remains competitive, cost-effective, and responsive to the evolving needs of their workforce.

Step 2: Consider Employee Feedback

Consider asking employees to evaluate their employee benefits plan, with questions like:

  • Which benefits do you value the most?
  • Which benefits do you value the least?
  • Is there any coverage you don’t have but would like to see included in the plan?

These kinds of questions will give you insight into what employees place value in and what they don’t, allowing you to make more informed decisions about coverage. Furthermore, it will also give employees the feeling of being heard and having a say in their benefits plan, and that’s a powerful thing.

Step 3: Review Market Trends and Benchmarks

Stay informed about industry trends and benchmarks related to employee benefits. Research what competitors and industry leaders are offering their employees in terms of benefits packages. Compare your benefits plan against industry benchmarks to ensure competitiveness and relevance. Consider emerging benefits trends such as mental health support, flexible work arrangements, and financial wellness programs.

Step 4: Customize and Implement Changes

Based on the findings from steps one to three, customize your benefits plan to better align with the needs and preferences of your workforce. Consider introducing new benefits, enhancing existing offerings, or modifying eligibility criteria as needed. Communicate any changes effectively to employees to ensure clarity and transparency. Monitor the impact of the changes over time and be prepared to make further adjustments as necessary.

You also can consider collaborating with our Advisors. Your group insurance advisor is an invaluable resource for evaluating your benefits plan. With their expertise, they can analyze your renewal information, elucidate its implications for you and your employees, and propose necessary adjustments.