Authors: Ruth Hunt Adam Marksberry Jessica Nikunen
In today's rapidly evolving workplace, the proliferation of point solutions for employee benefits presents both opportunities and challenges. As organizations strive to meet the diverse needs of a multigenerational workforce, questions arise regarding how to simplify choices, provide adequate options and maximize the value of investments without overwhelming employees with too much information or too many offerings.
While considering point solutions comes from a place of good intentions, it's not an easy task for employers to find the offerings that are "just right." Because the number of available options can be overwhelming, it takes significant time to evaluate direct B2B pitches and consultant recommendations. This saturation confuses efforts to determine which solutions would genuinely benefit the organization and its employees.
Luckily, strategies can be put in place to build a more curated set of solutions. But it's important for employers to keep employees at the center of their benefits strategy, selecting point solutions based on real and expressed needs — beyond cost or convenience. Regular reviews of employee needs and optimal offerings can help assess the solutions' relevance and effectiveness, and strategic communications can help ensure employees understand, use and value them.
Making the right selections in a crowded marketplace
Over the past decade, thousands of new vendors entered the point solution marketplace for employee benefits.1 And notably, many solutions also exited. Most employers provide access to between four and nine point solutions, but some offer as many as 12.2 Choosing the right options can be difficult, and employers may want to prioritize certain selection criteria above others. Either way, it's vital to emphasize quality over quantity.
Point solutions should be accessible to all employees regardless of their location or schedule, and when possible, offer both in-person and digital options. To help with inclusivity, they need to be relevant to the diverse cultural and demographic backgrounds of a multigenerational workforce — ideally supporting multiple languages. And when they seamlessly integrate with existing offerings and systems, the result can be an enhanced benefits package without redundancies. Also important, assertions regarding effectiveness need to be proven and require thorough investigation by employers to help ensure expected outcomes aren't being overpromised.
Measuring success to optimize investments
Once point solutions are in place, leveraging data-driven decision-making can improve their effectiveness, which is critical to justifying current and future spend. Engagement rates, health outcomes and employee feedback can be helpful measurement tools.
High engagement rates often indicate that offerings are well aligned with employee needs and are being effectively communicated. Improvements in employee health outcomes, such as reduced stress levels or better overall mental health, suggest point solutions are making a positive impact. And employee feedback through regular surveys or other mechanisms can provide direct insights into how employees perceive their benefits and related programs, and what improvements are necessary.
When calculating the return on investment (ROI) of point solutions, employers should look beyond standard financial returns to also consider employee satisfaction and engagement, improved productivity, reduced absenteeism and lower healthcare costs. However, a guaranteed ROI doesn't make adoption of a new point solution a no-brainer. Organizations also need to consider the implementation efforts, administrative requirements, and tracking.
Additionally, a longitudinal review of claims data can verify whether point solutions are being used and producing sustained results. For example, many conditions have multiple comorbidities — such as chronic conditions like diabetes accompanied by mental health concerns. While initial participation in the point solution may increase costs, the level of adherence may well help reduce the severity of the condition and subsequent medical claims and disability costs.
Developing clear communications to aid employee decision-making
While point solutions are often meant to address specific health and wellbeing needs, adoption of multiple solutions can add complexity and confusion for employees — even when options are well curated. Too much choice can paralyze decision-making and lead to underutilization. Strategic communications help ensure employees fully understand, use and value benefits as part of their overall employee experience.
The solution lies in the organization's ability to streamline communications and make the decision process simpler and more intuitive for employees. Data analytics can personalize benefit communications based on the employee's health status and previous benefits usage. Understanding the preferences of a multigenerational workforce is also helpful. Each generation has distinct inclinations and communication styles that influence how they receive and process information.
For younger generations, digital and interactive tools may be more engaging, while more seasoned employees might appreciate live support and home mailings or require additional assistance with digital platforms. Regularly educating employees about their benefits through workshops, seminars and digital content helps them understand the options available to them and the potential advantages and disadvantages of each. Ongoing communication then keeps those options top of mind when life changes create new and different needs.
Bundling related point solutions is another worthwhile tactic. Bundling allows employees to more easily recognize which benefits apply to their unique health and wellbeing needs, and improves understanding of how programs work in coordination or independently of one another. Bundling solutions not only simplifies the decision-making process, but it also helps ensure that employees are aware of all relevant benefits without feeling overwhelmed by irrelevant options. Interactive decision-support tools can then guide employees through a series of questions to help them identify and select the most suitable point solutions based on their specific circumstances.
As employers continue to expand their benefit offerings to meet diverse employee needs, the proliferation of point solutions can't be ignored. By strategically simplifying choices, measuring the effectiveness of initiatives, and tailoring communications and offerings to a multigenerational workforce, organizations can enhance the value of their investments in employee health and wellbeing. In doing so, they not only improve the immediate health outcomes of their employees, but they also set the stage for a healthier, more engaged and more productive workforce in the long term.
