Challenge yourself, now is the time for change. A motivational statement for personal gain, an intimidating one for business. But what if you reframe the way you think about change and make an incremental adjustment instead of a giant pivot?
75% of employers, by our estimation, should probably take this approach because change can be less intimidating when done in small ways. We understand this to be true in all other areas of life and business. If you want to lose weight, you might join the gym or begin a diet. In either case, you don’t expect to reach your goal weight by the second day. You start slow and lose a few pounds a week.
Benefits can be the same way.
For example, your prescription spend is usually a major driver of healthcare costs and almost always an immediate opportunity for lowering your spend. The quality of care doesn’t need to change, and if it does, the reason is because the care becomes better. Your employees can get the same prescriptions they have always needed but for lower rates or potentially easier access with deliveries by mail instead of pickup at a pharmacy.
Small changes equal big returns.
Incremental changes like this are less daunting and easier to manage, allowing you to move forward confidently, with less disruption in your daily work routine. The tradeoff is that the savings are not as large and may not come as quickly, but instead, gain traction over time.
Here are some areas to consider when examining your employee benefits costs:
- Pharmacy spend. Depending on the size of your group, a change in pharmacy can mean savings in hundreds of thousands of dollars.
- Employee education. Implementing changes in the way your benefits are rolled out. Holding seminars and educating your people about how to use the benefits you provide.
- Transparency for employees. Adding online tools for employees to access their benefits plan could help with preventative medicine and allow your people to see what is available to them.
- Customized solutions. Employees are more likely to use plans that fit their own needs, instead of a prepackaged plan fit for all employees.
- Underutilized programs. Take a close look at what is being offered to employees and what they are actually using.
- Data analysis. Before making changes, small or big, a thorough analysis of your business’s data should be completed.
Your benefits should match your goals, always.
Every business’ financial situation is different, and therefore the changes to your benefits will be different too. For instance, if you need to reduce your spend by half or more, making small changes may not be in the best interest for your business. On the other hand, if you only need a 10% reduction in the short term, the slow and steady approach is practical.
We have clients at both ends of the spectrum and everywhere in between.
When we make multi-year plans, we assess as we go. We stay agile in our response to the data and industry or regulation shifts, making sure the structure of the plan always matches the goals of the business.
At the end of the day, whether you are looking to make large changes quickly or you are looking to make small, impactful changes slowly, you need to challenge yourself. We can help. We help build strategies that are designed specifically for your business, culture and employees so you can deliver the best for your people.