It’s time to get smart about benefits. Smart technology can go a long way to improve the way employees interact with benefits. This, in turn, can increase employee satisfaction, which can boost engagement, productivity and retention. It’s an amazing chain reaction, and it all starts with the right tech tools.
The Link Between Benefits and Satisfaction
When employees are unsatisfied, they may leave. Employee Benefit News reports that, based on data from Work Institute, replacing a worker costs about 33 percent of the worker’s annual salary. For workers earning an average of $45,000, that translates to $15,000 per worker.
Dissatisfied employees may also lead to increased costs due to reduced productivity and increased absenteeism. The takeaway is clear: employers need satisfied employees.
Many things contribute to job satisfaction, but employers should not underestimate the role of benefits. According to the State of Employee Benefits from the Employee Benefit Research Institute, employees who say they are extremely or very satisfied with their benefits are more likely to say they are extremely or very satisfied with their job. As benefits satisfaction increases, overall job satisfaction increases as well.
Do More Than Just Offer Benefits
Simply offering benefits may not be enough to increase satisfaction. This is because employees may not understand or use their benefits. The State of Employee Benefits report also found that 12 percent of employees reported not understanding their benefits too well or at all in 2018, while another 37 percent said they only understood their benefits somewhat.
To boost satisfaction with benefits, employers have to make benefits easy to use and understand. That’s where smart technology can help. New tools can improve education and engagement.
Smart Technology to Use
First, a good benefits administration system is a must. The system should make things easier for HR, but it should also include a good self-service portal for employees.
- Can the portal be accessed anywhere, anytime – including on smartphones?
- Is the portal intuitive to use with little to no training?
- Does the portal make it easy to understand and compare benefit options?
Beyond the portal, the use of multiple communication methods can help engage more employees in the benefit selection process. These can include emails and text messages, and well as online tools and interactive tutorials.
But engagement shouldn’t stop at enrollment. New tools can go even further to help employees make the most out of their benefits.
HealthJoy, for example, provides an AI-based virtual assistant and health care concierge, according to TechCrunch, as well as a price transparency tool and an employee assistance program with access to short-term counseling. HealthJoy reported a login rate of 33 percent. Not bad!
Now, in the remote work environment of COVID-19, employee benefit tech is even more important. Need to modernize your employee benefit tools? Higginbotham can help. Contact our employee benefits team to learn more.