Long-term benefits planning is the exception, not the rule, among the majority of human resources managers, according to HUB International’s 2017 Employee Benefits Barometer study. A mere 4 percent have a two-year window on planning, while 65 percent put less than a year into their efforts.
It’s a reactionary approach that hinders HR’s effectiveness on a number of fronts, including their ability to capitalize on high priority cost management strategies or the design of plans tailored to the distinct needs of an increasingly diverse workforce. And there’s also a cost in terms of HR’s wider influence with senior management.
The Benefits Barometer findings on long-term benefits planning were based on input from 300 employee benefits professionals whose organizations employ between 50 to 1,000 workers. It uncovered some surprising disconnects as well as trends that are shaping the evolving benefits environment.
Among the other key findings:
- Managing benefits costs is important, but…
More than 80 percent of respondents termed benefits cost management a top 2017 priority. Many are implementing well-established practices like multiple plan options, telemedicine and high deductible plans in the next 12 to 18 months. Still, despite the near-unanimous recognition of benefits cost management’s importance, nearly half of respondents (a surprising four-in-ten) have no new cost management initiatives planned over the coming 12 to 18 months.
- Wellness does everybody good
Employers that have focused on wellness initiatives are great endorsers of these programs. More than half of respondents whose organizations have them said improving wellness and productivity is a top three benefit priority – and why not? Improved employee morale has been an important outcome, according to 54 percent. And overall, said one-third of respondents, their wellness programs deliver a return on investment.
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Responding to multi-generational workforce needs is a challenge
For all the buzz about the diverse needs of today’s multi-generational workforce, it’s still not one of HR’s biggest priorities, as only 28 percent of respondents ranked it as a top concern. As one survey participant commented: “being a medium-sized employer, it is so costly to offer a variety of plans that meet the needs of each generation…We seem to be sucked into the one-size-fits-all approach.”
The 2017 Benefits Barometer is a good way to gauge how your benefits strategy stacks up compared to others. You can read the full report here. Contact your HUB Employee Benefits advisor to discuss benefits trends and what it means for your strategic planning process.