For benefit advisers, a guide to managing client change and generating results

Managing change and generating results are two useful strategies for developing and maintaining a comprehensive, successful benefits program. As a consultant, deciding which strategy will produce the most value for your clients can be challenging. But by taking time to understand their expectations, employee needs and company culture, an appropriate path can be determined.

Knowing what your client expects from their benefits program begins with effective communication centered on what they need. When communicating, be sure to ask questions, learn what problems they have and discuss desired outcomes with them. Discussions with clients should occur frequently throughout the year, not just before renewals are due. 

Consistent communication with employees can help determine how well a benefits program is performing and if their needs are being met. Pulse surveys, benefit-awareness events, and text touch-points can be used to gather information and promote current benefit programs. Analysis of feedback should be completed to weigh the benefits and costs of any needed changes.

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Employee benefit programs also should complement company culture. For example, a company that promotes a supportive culture should have a focus on employees' growth and could offer leadership development, enhanced employee assistance or well-defined mental health programs. Only after a thorough review of company culture, employer expectations and employee satisfaction has been conducted can a strategic plan be designed.

Managing change when modifying a small employer's benefits program can be a valuable strategy. With a small group, a consultant is more likely to have the ability to speak directly with employees, allowing for in-depth, one-on-one conversations about possible changes to the program. Discussions about new procedures or accounts, monitoring throughout implementation and providing employees opportunities to ask questions during the process are also easier with members of a small group.

Alternatively, managing change with a large group can be more difficult. Large employers often have more processes, more employees distributed across multiple locations and increased levels of management to navigate — which can create more distance between a consultant and employees. To manage change successfully, consistent communication with employees is essential, and with multiple layers of management and groups of over 1,000 people or more, communicating with each employee can become difficult — even risky.

According to a recent Axios XP survey, which surveyed over 500 business leaders and 1,038 employees, the cost of ineffective communication to U.S. businesses is about $2 trillion annually. In businesses whose employee communication becomes complex due to increased management or a distributed workforce, managing change may not be an ideal strategy.

Read more: 4 steps to become a strategic leader in benefits in 2023

For large employers that spend a tremendous amount of money on employee benefits, a focus on generating results could be more valuable. A recent Mercer report shares that employers expect a higher increase in the cost of health benefits per employee for 2023 and "continued accelerated cost growth in 2024 and beyond." Modifying a benefits program to address healthcare supply chain challenges in a more meaningful manner could go a long way toward helping alleviate rising costs. 

Advisers who embrace the status quo expect that costs will increase, so if they can actually chart a path for cost savings through a more efficient healthcare spend, then they will drive tremendous business value and protect employee compensation. For example, if a client pays a large sum of money into the healthcare system that is not being utilized efficiently, a strategy to remedy the loss could generate significant savings. Whether that money is wasted in the pharmacy sector or on facilities, a savings of 10% to 20% can add up. A large employer with a multitude of workers could see savings of hundreds of thousands or even millions of dollars.

Generating similar results with a small group plan can be more challenging because there is usually less of a budget available to drive savings that could create a higher risk to the company as a whole. A strategy involving cost-saving changes for a small employer must be carefully considered because the results need to drive a valuable return.

Consultants first need to understand their employer's desired results, how they will manage change and what their expectations are in order to build a successful, comprehensive benefits program. Whether the strategy is for a small or large employer, developing a process that produces cost-savings, boosts employee morale and productivity can make a big difference to the people who use them.

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The most desirable benefits are the ones that provide employees with affordable care that focuses on quality. Some points to consider when developing a benefits strategy for a large or small employer include discovering employer goals, communicating with employees, researching and analyzing benefit data, creating and designing a plan, implementing new changes, monitoring effectiveness, and keeping a close watch on continuous improvement.

Once a strategy has been designed and changes implemented, each program should be monitored and improved as needed, regardless of employer size. Both large and small employers can be affected by economic shifts, technological developments, rules and regulations or changes in company growth or goals, which can affect employee benefits programs.

Making changes to their benefits program is inevitable; deciding how to manage those changes and what strategy to utilize is essential. So get to know your employer clients and their people. Then design a benefits program that represents them both.