Strategic employee benefits serve multiple purposes. They can improve employees’ health and well-being and reduce employee turnover while offering more effective cost management. However, a benefits package is only as effective as it is relevant to employees’ needs. Businesses that invest in employee benefits that don’t align with staff members’ lifestyles often struggle with employee retention and diminished office morale.
Why Benefits Data Matters
Companies can tell which benefits fail to accrue interest based on employee activity, but it’s impossible to know why without analytics. Analytics also allow employers to see if their changes to benefits packages improved employees’ well-being. Additionally, companies can use the data to gauge how much employees value specific benefits to decide if they’re worth the investment. Knowing what is and isn’t working can help businesses manage costs by reducing wasted expenses on unpopular benefits.
How to Use Benefits Analytics
Making reactive changes to benefits packages is like throwing darts in the dark and hoping for a bullseye. It’s possible but wildly unlikely. Analytics can pinpoint employees’ benefit preference trends to help employers make proactive changes that yield reliable results. With enough data, companies can gain better insight into employees’ shifting needs and better prepare for future adjustments to their benefits packages. For example, a highly sought benefit among Millennials may fail to grab Gen Z’s interest. Companies can track their employee demographics and modify their benefits options to match those individuals’ needs.
Other Analytics Benefits
Businesses can use employee benefits analytics to drive data-driven changes to their benefit programs that appeal to employees. Employers can also use analytics to reduce costs and improve employee retention. Other analytics benefits include:
- Better time management and fewer errors. Automated reports reduce the likelihood of human error when manually gathering and compiling data. It saves time and allows employees to focus their attention on other projects.
- Reduces health costs. Companies can use benefits data to improve employee health and reduce absences due to illnesses.
- Provides accurate insight into ROI. Businesses can use benefits data to compare the costs to how employees utilize the benefits. They can gain a clear understanding of the return on their investment and identify benefits that are a wasted expense.
Using employee benefits analytics helps employers to develop data-backed benefits packages that meet employees’ needs. Contact Windermere Insurance Group to learn more about building benefits packages tailored to your company’s unique requirements.