Money makes the world go ‘round…and these days, it might just feel like it’s driving your organization’s every move. In the midst of inflation, rising healthcare costs, and evolving employee needs, company budgets feel tighter than ever. That means you might be making difficult decisions about where to cut back, from office perks to the expensive resources and services your team uses every day.
And while some platforms might seem like a good candidate to cut, employee benefits decision support tools aren’t one of them. In fact, a powerful benefits engagement platform might just be the answer to helping you curb unnecessary healthcare spending this year, and could even save you a few bucks in the long run (okay, let’s make that hundreds of thousands of bucks).
In other words, a personalized benefits decision support tool isn’t just helpful in the short-term—it’s the key to long-term financial and organizational success. Let’s explore why investing in a time-tested, industry-leading tool like ALEX is a smart move, even when budgets are tight.
The true cost of misunderstood benefits
If you’re like the average employer, you’re spending 30% of your overall compensation budget on employee benefits. That’s a really significant investment! And it’s a sign that organizations are doing their best to maintain a strong support system for their employees, who have a growing range of needs—physically, mentally, and financially.
But unfortunately, employees aren’t fully understanding or taking advantage of all of the resources you have to offer—and that undermines the value of your benefits package.
This lack of understanding can lead to poor decision-making, like choosing the wrong healthcare plans or opting for more expensive procedures and prescriptions, which result in higher out-of-pocket expenses for employees and increased overall costs for the employer. What’s worse? If your employees don’t fully see or appreciate the ways that you’re supporting them, they’re more likely to disengage—or worse, leave your organization entirely.
That’s where an advanced benefits decision support tool like ALEX can step in to bridge the knowledge gap. By providing personalized guidance and clear explanations, ALEX helps employees make informed decisions about their benefits. That not only improves employee satisfaction, but also ensures that the money your organization spends on benefits is used effectively.
How a benefits decision support tool like ALEX helps when budgets are tight
Addresses rising healthcare costs
Your employees are just as worried about inflation as you are, and they want to make healthcare decisions that will save money, too. But with lots of plans to choose from, fine print galore, and changing costs year after year, it can be hard to sort through the math to figure out which choices are the best for their family’s health and wallet.
That’s where an employee benefits decision support tool can help. Platforms like ALEX personalize the decision-making process, breaking down the numbers and offering tailored recommendations based on each employee’s specific circumstances. That means your workforce is less likely to over- or under-insure themselves, which can lead to wasted resources and unexpected expenses. With ALEX, employees are more likely to choose plans that are cost-effective and aligned with their healthcare needs, ultimately saving money for both of you.
Encourages smarter decision-making
You spend a lot on benefits, so it’s important that you get a good return on investment. And when your employees fully understand all of the resources you have to offer, they’re more likely to use them appropriately and to their full potential.
A personalized benefits decision support tool like ALEX simplifies complex benefits information, making it accessible and understandable for all employees, regardless of their familiarity with healthcare and insurance jargon. By guiding employees through their options and taking their unique health, family history, and financial situation into account, ALEX helps users make smarter decisions at enrollment and every time they use their benefits throughout the year.
And by leveraging modern technologies like predictive analytics, ALEX truly personalizes the benefits experience by comparing employees with claims data from millions of Americans, predicting how much healthcare coverage each employee will need, and how much they’ll spend in the upcoming year. Then, ALEX uses behavioral science principles to study employee behavior, pinpoint common benefits decision-making pitfalls, and steer them toward the plans that will give them the most bang for their buck.
Reduces administrative burden
One of the most commonly overlooked benefits of a decision support tool? The time and effort it will save for your HR team. Managing employee benefits can be a time-consuming and complex task, particularly when employees have numerous questions and need individual guidance. ALEX automates much of the process, providing employees with immediate answers and personalized support, anytime and anywhere. (That’s right, no more answering emails until midnight.)
That kind of automation frees up HR professionals to focus on more strategic tasks rather than spending countless hours on repetitive benefits education and troubleshooting. The result is a more efficient HR department that can better serve the organization’s broader goals, even within the constraints of a tight budget.
Boosts employee satisfaction and retention
We’ve all seen the stats. When employees are disengaged or leave your company, it’s incredibly expensive for your organization:
Employee benefits are a key factor in increasing job satisfaction and retention. When employees fully understand and appreciate the support your organization offers, they are more likely to feel valued and remain with the company.
ALEX helps foster this understanding by making benefits information accessible and engaging. An interactive and user-friendly design keeps employees engaged during the decision-making process and offers helpful reminders throughout the year when employees are actually using their benefits.
With a benefits decision support tool, your organization can offer a more positive experience that significantly enhances employees’ overall perception of their benefits package and, by extension, you—their employer. Happy and well-informed employees are not only more productive but also more loyal, reducing turnover rates and the associated costs of recruiting and training new staff.
Adapts to changing needs
The only constant is change, right? And we’ve heard from our customers that they’re making more changes than ever to their benefits packages in an effort to contain costs and better serve their workforces’ evolving needs.
In the old days, that would’ve created a huge project for your HR team, from updating Powerpoint presentations to recreating benefits guides. But now, a benefits decision support tool like ALEX can help you adapt quickly. As your benefits packages change, so does ALEX—providing relevant and up-to-date information as soon as you say the word.
Whether it’s adjusting to new healthcare regulations, incorporating additional benefits like mental health resources, or addressing the unique needs of a remote workforce, ALEX ensures that employees always have access to the most current and applicable details. This adaptability is crucial for maintaining the relevance and effectiveness of your benefits program in the face of ongoing changes.
Making big benefits changes this year? Here’s how to break the news to your workforce.
A smart investment in tough times
While it may be tempting to cut certain expenses in response to budget constraints, an employee benefits decision support tool should be considered an essential investment. In the end, the cost of benefits misuse or misunderstanding far outweighs the expense of implementing a robust platform like ALEX.
By helping employees make informed decisions, reducing administrative burdens, and enhancing overall satisfaction and retention, ALEX provides tangible value that extends beyond mere cost savings. It ensures that your benefits program truly benefits both your employees and your organization, delivering a substantial return on investment and setting you up for long-term success.
In an era where every dollar counts, making the most of your benefits budget is crucial. ALEX empowers employees to navigate their benefits with confidence, leading to smarter choices and better outcomes for everyone involved. Investing in a personalized benefits decision support tool like ALEX is not just a wise financial decision; it’s a commitment to the well-being and success of your workforce.
