When it comes down to your budget, benefits are most likely your highest line item. To help prove the merit of that investment, your most common KPI may be around enrollment rates. But should that be your only success indicator?
With healthcare costs spiking up to 9% this year, organizations are under pressure to increase that ROI even further—which can be difficult in a turbulent economic and talent market.
Let’s take a look at some additional KPIs our clients are looking at to measure and track the overall financial success and strength of their benefit program—and how you can use them yourself.
Measuring and improving ROI from your benefits administration strategy starts with understanding what your current enrollment process looks like.
Your benefits administration partner plays a huge part in this. They should be an extension of your benefits team, helping you refine your administration approach and providing you with real-time insights to identify trends, successes, and opportunities.
For example, we’ve helped our clients remote unnecessary manual work out of their enrollment processes, saving them as much as $100 per employee per year. For an organization of 2,000 benefits-eligible employees, that’s $200,000 in avoided costs just by removing a manual enrollment process. We can hear your benefits team cheering now.
Today’s employee expects to be delighted with their benefits. Core medical, vision, and dental are now table stakes. Employers are expected to offer a wide array of benefits designed to support work-life balance, performance, physical and mental wellbeing, financial stability, and much more.
How can the modern HR team meet those expectations without breaking the bank? It starts with flawless execution—making sure you get it right when an employee goes into enroll in their benefits. That also means no noise, no operational disruption, and certainly no surprises.
Simply establishing this kind of “quiet” on operations has an impact on your bottom line. Take KeHE Distributors, a Businessolver client, who saw 84% of their employees confidently enroll themselves in their benefits. With thousands of HR admin hours saved, in combination with savings from removing ineligible dependents and reducing overall manual processes, KeHE reduce their spend by a total of $2.9 million.
You may have a high employee enrollment rate, but how many of those employees are choosing benefits that actually fit their unique physical, financial, emotional needs?
With decision support, employees have the confidence to make right-fit choices without having to be benefits experts. Businessolver’s decision support tool asks the questions that your employees don’t know to ask themselves, educating them to make a decision that suits their unique lifestyle and situation.
According to decision support data from our annual Benefits Insights Report:
Moreover, consider how you currently support greater plan adoption into spending and savings accounts as this can lead to financial savings for your workforce.
Learn more about how decision support at enrollment can drive year-round results
So let’s say your employees are enrolled. They’ve got benefits that fit their needs. Here comes the last piece of the ROI puzzle: actually using those benefits. Consider how you and your benefits administration platform can offer greater visibility of your benefit offerings and ensure the right benefits are accessed at the right time.
By leveraging capabilities such as Businessolver’s provider guidance tool, you can realize conservatively a 1.5% reduction in your medical spend. And over a few million dollars, 1.5% can make a big difference.
AI is showing us that there is more than one way to engage with employees and help them activate their benefits. Through tools like AI-powered chat support, tailored communications, and targeted nudges toward relevant benefits, companies are making their benefits work smarter, not harder.
Because by simplifying access to quality care and encouraging smarter choices, organizations are driving improved health outcomes, which in turn leads to tangible costs savings, and stronger business performance.
