Here’s a startling reality: nearly half (45%) of employees admit they don’t fully understand their benefits package. But is that so surprising? Between HSAs, FSAs, PPOs, and HDHPs, it sometimes feels like you need a translator app just to get started.
This confusion leads to some pretty understandable but concerning behavior: 31% of employees procrastinated on their benefits selections last year (we’ve all been there), while 44% went solo on these decisions without consulting anyone (brave, but maybe not the best approach).
The result? One in six employees regretted their choices, with 60% saying they simply didn’t understand their options well enough. But here’s the true cost of this confusion: People are leaving serious money on the table.
We’re talking hundreds, sometimes even thousands of dollars more than employees need to spend on healthcare costs. With inflation already squeezing budgets and healthcare costs continuing to climb, making informed benefits decisions matters more than ever.
That’s where benefits decision support tools come in, turning the complexity of benefits packages into clear, actionable choices for your employees. When organizations get this right, everyone wins: employees make confident decisions that boost their overall wellness, while employers see higher retention rates and better returns on their benefits investment.
What Is Benefits Decision Support?
Benefits decision support refers to tools and resources that help employees understand, choose, and use their benefits effectively. Consider it your benefits guide—turning complicated benefits choices into clear decisions that make sense for your employees’ real lives.
But it’s more than just a glossary of terms or a basic comparison tool. Modern employee benefits decision support tools are comprehensive solutions that guide employees through every stage of their benefits journey—including onboarding, open enrollment, qualifying events, and retirement.
Key Features of Effective Benefits Decision Support Tools
When evaluating employee benefits software, here are the top features to get on your radar:
1. Comprehensive and Interactive Education
Education is the foundation of benefits engagement and how you deliver information should take the unique individuals that make up your workforce into account. You’ve got Gen Z employees just starting their careers sitting next to Boomers planning for retirement, parents juggling childcare costs alongside single professionals focused on mental health benefits, and remote workers with different healthcare needs than their in-office colleagues.
When you make benefits education interactive, inclusive, and engaging, it can adapt to all these different situations. Employees better understand their options, make smarter choices, and your HR team gets fewer ‘quick questions’ in their inbox.
ALEX Provides Benefits Education That Actually Sticks
ALEX has an interactive, one-on-one conversation with employees, breaking down complex concepts into digestible pieces. ALEX uses conversational language and a dash of humor to keep employees engaged while learning about their benefits options.
2. Personalized Recommendations
We’ve established that every employee’s situation is unique and this influences the benefits they need—what works for one employee might be a complete mismatch for another. Personalized recommendations ensure employees receive guidance that actually matters to their lives.
This means looking at their specific health needs, family situation, financial comfort zone, and even their healthcare usage patterns from previous years. When employees get relevant recommendations—like HSA contribution suggestions based on their typical medical expenses, or reminders about preventive care benefits they haven’t used yet—they make better healthcare decisions and see real improvements in their employee wellness outcomes.
ALEX Gets Personal (In A Good Way)
ALEX gets to know your employees personally by asking about their family makeup, health history, and financial situation. With this information, ALEX uses predictive analytics to map out your employees’ future needs and costs. Then, using behavioral science, ALEX provides personalized recommendations that help employees choose the best value plans for their needs,
Pro Tip:
With ALEX ID, users get a curated and personalized benefits experience based on their unique needs.
3. Holistic Employee Support
Benefits selections aren’t just a once-a-year thing—those decisions send ripples into every part of your employees’ lives. That’s why a holistic approach to benefits support is crucial. A truly effective benefits decision support tool connects these dots for employees.
It helps them understand how their healthcare choices impact their take-home pay, how their FSA contributions affect their tax savings, and how their wellness program participation could lower their insurance costs. It reminds them about their EAP when they’re stressed, their telehealth options when they’re busy, and their preventive care benefits before small health issues become big ones.
This holistic view doesn’t just lead to better decisions—it shows employees the full value of what you’re offering. When employees understand how their benefits work together to support their employee wellness, they’re more likely to use them effectively and stay with companies that provide them.
ALEX Presents the Big Picture View
ALEX is your employees’ round-the-clock benefits guide that provides support, recommendations, and reminders whenever they need it. ALEX learns more about your employees over time, streamlining their experience and fostering smarter choices.
At the same time, you gain deep insights into what benefits matter most to your employees, helping you fine-tune your benefits strategy, increase engagement, and improve employee wellness outcomes.
Pro Tip:
Track benefits engagement, spot trends, and make data-driven decisions about your benefits strategy with a real-time analytics dashboard via ALEX.
Your Benefits Success Story Starts Here
Creating a positive employee benefits experience isn’t just about what you offer—it’s about how well your employees understand and use what’s available. That’s where ALEX makes all the difference.
For HR professionals, having ALEX onboard means seeing employees make informed benefits choices with confidence. For brokers and consultants, it means offering clients a solution that transforms their benefits investment into real results. And for everyone, it means better outcomes: smarter healthcare decisions, improved wellness engagement, and stronger employee retention.
