It’s a good idea to sit back and look at the big picture once in a while
By: Bill Zolis
When things are going well and everything seems to be under control, that’s when I tell myself it’s time to take a step back and take the time to look at where we stand and where we’re going.
This certainly applies to planning and managing your benefits, and I think that right now – the middle of the year — is a great time to look at a reset.
I’m not talking about the due diligence that we perform on a regular basis. That’s the kind of review, with the help of your consultant, that looks at the details – and, yes, of course it’s important to do that, semi-annually, quarterly and certainly at renewal time. But what I’m talking about is the long view and the big picture.
When we’re looking at our benefits programs, this means asking a number of questions that we might not think to ask in the normal, day-to-day management of benefits. Here are a few of those questions – enough, I hope, to get us thinking.
– Do they like it? It’s a simple enough question. Do our employees, our plan members, like their benefits, yes or no? We can do in-depth analysis and try to measure and record attitudes and feelings, but it really comes down to that simple question. It’s not something you necessarily discover in a survey or a study, it’s more of a feeling you pick up when you walk around and talk to people.
– Do our employees think about their benefits at all? Sometimes, benefits can fly under the radar and don’t get much thought from plan members. In a way, that can be a good thing, in that it means things are running smoothly and that there are no complaints. But benefits are a major part of compensation and have a number of important roles to play in the workplace. It requires some degree of awareness and understanding for benefits to do all the things we want them to do.
– What is the prevailing attitude towards the benefits program? Are your benefits seen in a positive and supportive light? Are employees aware – have you told them – that benefits are a very significant cost and a major part of their total compensation? Do plan members know how much the employer spends per employee on providing benefits? We work this out for our clients, and it’s information that should be shared.
– Are employees using their benefits? When you look at the claims that flow through the system, and drill down into the numbers, are you seeing what you expected? Does the usage of different benefits line up with the projections and the budgeting? Are some benefits used more than expected, and some less than expected? Are there some plan members who use many of the available benefits and some who use very few?
– Do employees understand their benefits, and are the comfortable accessing them? They may not be exactly sure what’s covered, or under what circumstances.
– Has the work force changed since we last looked at our benefits program? A workforce composed primarily of young, single people will use benefits very differently from, say, a workforce composed of older people with families.
– Are they using benefits in the way you intended? There are core benefits, such as dental and prescription drugs, and there are other benefits offered as perks or “added value” to enhance the benefits program. Are they being used as intended, or do you see an element of “use it or lose it” as the driving force behind usage?
– Do the benefits achieve the primary goal of supporting the health and well-being of plan members, while relieving them of the cost barriers to, for example, dental care or prescription medicines? From the plan members’ point of view, that’s what benefits are all about. So how well does your plan achieve this goal?
– Does our benefits program achieve the long-term goal of helping the build a culture of caring – the well workplace? This question looks at things like morale, buy-in and the level of engagement that employees feel with regard to their jobs, their co-workers and the employer.
– Are we getting the best value for money? Do the benefits we are offering correspond to an expressed need or desire of our plan members? Does it work for our people? Could a dollar spent on this particular benefit have a greater impact if it were spent on a different benefit?
– Have the trends in usage of some benefits versus other benefits changed over time? If so, what conclusions can we draw from this? Is it time to realign our priorities?
– What are you hearing from people you talk to when benefits are mentioned? When you hear something totally unexpected from one person, well, that may be interesting. But when you hear the same thing again later from another person, it’s time to take notice and dig a little deeper to see what it means.
– Does your benefits plan make your workplace stand out in the eyes of employees? Is it a big checkmark in the win column?
Most of these questions will not have clear-cut answers or suggest simple solutions. It’s more a process of fine tuning, of alignment, and perhaps making some mid-course corrections and adjustments. Of course, budgets are not unlimited and not everyone is always going to be happy. But making sure that your benefits plan stays aligned with the needs and expectations of plan members – and making sure you communicate the true cost and value of benefits to plan members — will ensure that both the employer and the employees are getting the best value possible from your investment in benefits.
***
I really appreciate comments, ideas, suggestions or just observations about the blog or any other topics in benefits management. I always look forward to hearing from readers. If there’s anything you want to share, please email me at bill@penmorebenefits.com.
Copyright Notice
© Penmore Benefits 2025. All rights reserved. All of the content herein is the sole property of the Penmore Benefits, and may not be reproduced, transmitted, or stored in a retrieval system – in whole or in part – without the written permission of the Penmore Benefits. Links to the originating article are permitted.
The Buzz Bits
A refresher for administrators
Travel insurance: A Must-have checklist
Canadians increasingly consider US health care as delays persist at home
Employees on LTD more likely to claim for chronic diseases
BC pulls drug funding as Canada’s specialty drug costs climb