Are you getting the best return on your investment in employee benefits? It isn't always easy to answer: you may have too much information on some programs and too little on others.
For strategies to align and integrate programs, see Transforming Health Benefits Programs. For related services and workplace support, see Psychiatric Assistance / Employee Assistance Programs (EAP).
To help employers evaluate the cost-effectiveness of health-related benefits programs, experts recommend these guidelines:
- Focus on the overall picture. It can be easy to miss the forest for the trees. For example, when measuring the impact of a return-to-work program, it's straightforward to see whether disabled employees return sooner, but you also need to consider the program's effect on other health-related benefits.
- Share information among programs. Most employers manage health benefits in separate silos — medical insurance in one place, disability in another, and workers' compensation in a third. Distribute every incident of medically related absence throughout the company so teams can analyze overlaps and trends.
- Benchmark your results against those of your peers. The simplest standard is how comparable companies in your industry are doing. Although not always a perfect match, benchmarking gives insight into competitors' approaches and helps you adjust plan design or case management (for example, elimination periods, wage replacement rates, or maximum benefit durations).
We'd be happy to help you evaluate the cost-effectiveness of your benefits program. For implementation support and program design ideas, see Transforming Employer-Sponsored Health Benefits.
You can also consider broader risk strategies like Reinsurance Programs when reviewing overall benefit costs and exposures.
If you want personal assistance, talk to an agent.
Frequently Asked Questions
How do I measure the return on investment for employee health benefits?
Compare program costs to outcomes such as reduced absenteeism, shorter disability duration, and improved productivity, while accounting for related impacts across all benefits.
What data should be shared among benefits programs?
Share incident dates, diagnosis categories, absence duration, and return-to-work outcomes so medical, disability, and workers' compensation teams can analyze overlaps and trends.
How can benchmarking help improve our benefits?
Benchmarking against similar employers highlights gaps and best practices, helping you adjust plan design or case management to align with industry standards.
When should I consult an insurance professional about benefits strategy?
Consult an agent when you need help integrating data, redesigning plans, or evaluating vendors to ensure your benefits deliver the intended value.