What's the Best Way to Make a Benefits Switch Worth it?
Employee benefits plans are a great way to attract and retain talent to your company.
However, unlike remuneration, benefits plans are affected by trends that change their value to your employees. That means, what was highly valuable to the last generation of workers isn’t necessarily valuable to the next generation.
And a benefits program that doesn’t bring value to your employees, won’t bring in that top talent to your company.
So, when it comes to getting the most out of your benefits package, it’s necessary to change and adapt to new needs in the marketplace. If your current benefits plan doesn’t give you that ability, it may be time to make a change.
The hurdles to changing your benefits plan
It’s easy enough to talk about changing your benefits provider, but actually doing it is something else entirely. Making a switch between providers can be a cumbersome procedure if not directed by an experienced professional.
That’s why we encourage a well-thought-out strategy before shopping around for benefits.
So, before you decide to switch, consider whether the difficulties of switching are worth the benefits.
There are two major hurdles your company has to clear to change your benefits plan – the time it takes, and the risk of losing coverage your employees value in making the switch.
Switching benefits suppliers can be an arduous process that ends up stealing time from everyone in the company, from executives to office staff, right down to the employees on the ground.
#2 Losing value
No two benefits providers offer the exact same thing, which means there’s always a bit of give and take. This may mean disruption in current claims, pre-existing condition resets, loss of coverage in some areas, and even the loss of reserves.
Is changing my benefits provider worth it?
The only reason we ever encourage an employer to move providers is if:
The move will offer sustained savings
Their current provider can’t offer enough value for the businesses’ employees
There are claims or other service issues with the current provider
So, how can you ensure you won’t be jumping through these hoops every few years to keep up with market trends?
Make sure you find the right benefits supplier for you.
Know before you change
The most important consideration before changing is to know:
Exactly what you’re getting currently – and the amount you’re paying for it
What’s available on the market; and what your employees deem valuable
Without understanding the above key points, you can’t guarantee that any switch will be ultimately beneficial.
The steps to making a beneficial change
First, speak with your employees to get an understanding of what they find most valuable in a benefits plan. Then, study the trends to make sure you future-proof your decision.
Once you know what you want, start looking around to see what is available. However, be careful with low, introductory prices as they are temporary and the savings gained is rarely worth the trouble to change over.
Finally, talk with a representative from your provider. Let them know you’re unhappy and give them the opportunity to fix it. Let them know what you’re looking for, and what you think is a fair price.
If that doesn’t work, it just might be worth the price to change.
Get the right benefits provider
Beyond everything else, the right benefits provider is one that will work with you to make sure you and your employees are happy. That means finding a provider with the tools and desire to find the right solution for you.
First, consider not only whether they offer the current services you and your employees want, but if they have enough reach to solve potential wants in the future.
As your company grows and your employees change, your needs will shift too. You need a provider agile enough to move with you through those changes, not one who is caught on their heels with no desire to help you.
Second, examine the onboarding process. Some companies go the extra mile to make it easier, while others leave it up to you to struggle through. If the provider isn’t motivated to make your sign-up process easier, then chances are they aren’t interested in making your life easier at all.
Find guidance for this difficult process
Ideally, you’ll never have to jump through these hoops. If you find the right provider from day one, they will help you at each turn, and make sure that you’re happy.
Whether you’re looking for that first benefits supplier that will ensure you don’t have to change or have decided to switch to a provider you’ll stay with for the long-term, we can help.