With the Great Attrition a matter of continuing urgency — the number of Americans quitting their jobs has stayed near record highs — attracting and keeping talent is a strategic priority.
Over the last five years,
Yet many organizations still have complicated and antiquated benefit design and employee guidance systems, and employees often don’t bother fighting through the confusion to understand their options. As a result, spending is misaligned, even as the structure doesn’t work as well as it could for employees, and the complexity is a strain on human-resource teams. But this is a problem that contains an opportunity to create a solution: intuitive, data-driven technology platforms that can deliver high-quality, easy-to-use products, services and information.
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The need to balance costs with a modern integrated benefits experience is pushing incumbents — and potential challengers — to redefine the intersection of health, wealth, and wellness in workplace benefits. There are three potential pathways to the creation of an integrated benefits experience:
Scenario 1: Existing vendors consolidate. In this scenario, a single organization is responsible for most products and services, which are organized on a central platform. The orchestrator could be an existing major-medical or voluntary-benefits carrier, a retirement recordkeeper, a benefits administrator, a human resource information system, or an ERP system provider. Ideally, this one-stop-shop platform would provide seamless enrollment, benefits, and financial-wellness recommendations, as well as convenient account servicing. It would also analyze individual data and product portfolios to devise new products and to give recommendations on how to allocate benefits spending. This scenario would be a natural evolution for many incumbents, although it would require investment in enrollment, guidance, expanded data access, and a clear M&A or partnership roadmap.
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Scenario 2: An intermediary-led integrated platform is created. In this scenario, an intermediary, such as a distributor or aggregator, creates a superior purchasing experience for employers and an integrated portal for employees. This could take the form of a digital marketplace that aggregates offerings across benefit vendors, enabling sponsors to select “best of breed” products. A next-level marketplace could also create a rich digital shopping experience with built-in educational and guidance tools. A distinctive platform could consolidate servicing, providing a centralized customer service center and a digital portal for participants to manage all benefits, regardless of who provides it.
Scenario 3: Retail services and product providers step in. This is the most disruptive (and therefore least likely) scenario. A retail-led platform could provide participants with their full financial picture across both retail and employer-sponsored products. This could be achieved by a retail-native institution that acquires the necessary capabilities, or through partnerships. Participants would be able to connect different products more seamlessly—for example, easily setting up recurring retirement or savings contributions via a single platform. For employers, though, procurement and servicing may not converge, leaving their experience largely unchanged.
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Regardless of the pathway, an integrated benefits experience offers wide-ranging and compelling advantages. Employers can reduce their administrative burden and costs, streamline decision making and create distinctive employee experiences to attract and retain talent. Employees would be able to make more informed choices with increased understanding and access to their benefits.
Though the path to achieving an integrated benefits experience is a work in progress, doing so is in everyone’s interest, and it is a clear opportunity for industry leadership.
