Realizing the promise of AI-powered benefits

Surging benefit costs are straining company budgets. Next year, employers are projected to pay nearly 9% more per employee for health benefits — for the exact same coverage. 

This increase comes just as workers are beginning to seek and expect quality benefits and personalization, due in part to the rapid and sweeping changes brought on by the pandemic. Today, 65% of workers worldwide are interested in better benefits and personalization, and nearly 40% are actively looking for a job with better benefits. 

More than 150 million Americans receive health insurance through their employers, and it's clear that one-size-fits-all approaches can't fit their diverse range of needs. As employers search for new strategies to balance costs without compromising quality, artificial intelligence presents a perfect solution for HR and benefits professionals. AI can automate routine, behind-the-scenes tasks to reduce costs while making room for smarter, curated employee benefits. The result is a benefits process that can actually be more personal than ever. 

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Today's workforce is diverse. For the first time in history, five generations are working side by side in the workplace, each representing a wide range of ages, values and life stages. It also means that they value different kinds of benefits. For instance, while Gen Z and millennials often prefer student loan repayment assistance and mental health care benefits, Gen X and baby boomers tend to prioritize family support and retirement planning benefits. 

HR teams need to be able to balance these conflicting needs and guide people through the different stages of their benefits journeys, but time and cost constraints are continuing to mount. Next year is projected to be the fourth consecutive year of swelling health benefit costs. It's putting unprecedented pressure on company budgets and forcing HR and benefits teams to make difficult trade-offs. 

Currently, 73% of companies plan to address high costs by switching to more cost-efficient vendors across health, retirement and risk benefits. This approach can reduce short-term expenses, but it can severely jeopardize quality in the long term, putting talent attraction and retention at risk. 

When used as a strategic partner, AI can help teams reduce costs and save time so they don't have to make these sacrifices. By using AI-driven solutions to streamline and automate administrative tasks, such as managing enrollments and processing routine benefits requests, HR teams can better process data to determine their employees' unique needs or benefits gaps — affording them more time to do the personal, human-to-human work on which so much of their job depends.

HR teams can also leverage data insights to enable faster, more consistent communication with employees. For instance, instead of solely relying on teams to handle routine benefits questions, AI-powered self-service tools can provide instant responses, freeing teams to focus on more complex employee needs that warrant dedicated, personalized attention.

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For benefit brokers as well, AI can be a powerful tool for data processing and analysis. It can process almost endless amounts of information and generate insights that help promote better employee participation and financial wellness outcomes. During open enrollment, benefit brokers can use AI to analyze demographics such as age, seniority and location alongside individual behaviors to guide employees toward plans best suited to their needs. 

Using tools like employee survey platforms, sentiment analysis software and feedback management systems is also incredibly useful. They track and quantify satisfaction scores, uncovering trends that help companies make informed decisions about benefits programs that directly reflect employee feedback. 

AI also plays a crucial role in improving communication across today's multigenerational workforce. With five distinct generations in the workplace, companies must tailor communication. AI can help customize communication and shape more inclusive policies through personalized feedback systems. It can provide insights from baby boomers, Gen X, millennials and Gen Z and recommend communication strategies that resonate with each group. Recognizing and adjusting communication to these intergenerational gaps is key to helping employees work more efficiently and strengthening workplace collaboration and culture. 

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For employees to truly bring value to the workplace, they need more than just health care benefits. Almost everything — food, housing, child care, education and the general cost of living — is increasing, and employees need benefits that reflect these realities. AI tools can help HR teams and benefit managers determine a comprehensive approach to compensation that includes competitive pay and bonuses, work-life balance initiatives such as flexible schedules and remote work, development and mentorship opportunities, and recognition and reward programs. 

Holistic strategies are the way of the future for companies. And although comprehensive benefits may seem expensive and labor-intensive, AI makes it easy to expand those offerings. Using AI and data-driven insights to streamline administrative tasks allows companies to allocate resources more efficiently, giving employees benefits that are not only cost-efficient but also personalized and relevant to their individual needs. 

With the introduction of AI tools, companies no longer have to pick between cost and employee satisfaction. HR teams and benefit brokers can now use these technologies to tailor benefits to suit different life stages, making them more useful and personalized. And paired with support from dedicated teams, organizations can maximize the benefits of AI, making it easier to attract, retain and engage top talent in a competitive market.