Hub International Limited (Hub), a global insurance brokerage, released the results of its third annual employee benefits study, Employee Benefits Barometer 2018: New Research Reveals the Business Value of Strategic Benefits Planning, which examines the complexities of managing benefits and the value of multi-year planning to better position Human Resources as business strategists to the executive suite.
GaryPhoto / iStock / Getty Images Plus
This year’s study of more than 300 employee benefits professionals from organizations with 50 to 1,000 employees, found that managing benefit costs remains employers’ top benefit priority with 66% of respondents ranking it as a key 2018 concern. Additionally, respondents cited that the most effective cost-cutting strategies in 2017 included high deductible health plans, multiple plan options, and telemedicine benefits.
However, while two-thirds of respondents say one of their 2018 goals is to better manage health benefits costs, 49% do not plan to implement any new cost management programs in the next 12 to 18 months. What’s more, 54% believe they have done all they can reasonably do to control rising medical costs.
“With managing benefit costs ranking as the top priority, HR leaders need to surround themselves with advisors who can present more tailored insurance solutions that help reduce costs,” said Mike Barone, President of Hub International’s Employee Benefits practice—in a press release. “There are many viable cost management benefit strategies for companies to explore but many are unaware of their options. Or worse, they don’t have an advisor who can help them adapt solutions such as pharmacy benefits management carve outs, narrow networks, and reference-based pricing for their employee population and organizational needs.”
Additional key insights from the study include the following.
- HR executives still aren’t embracing multi-year benefits planning: 66% of respondents say they spend less than a year developing their annual benefit plan changes making it difficult to plan cost cutting strategies that have a long-term impact.
- Few prioritize addressing the diverse benefit needs of a multi-generational workforce: Even though Millennials are playing an increasingly important role in the workforce, just 20% of respondents identified this objective as a top priority, down from 28% last year.
- Technology investments face C-suite skepticism: 46% say technology upgrades would reduce their workload, but 34% report challenges convincing CEOs and CFOs to make such investments.
- Wellness can provide a morale boost: 51% say improved employee morale was the biggest benefit of newly implemented wellness programs followed by employee stress reduction and employee productivity at 32%.