Transforming Flex Benefits with Data Analytics

Transforming Flex Benefits with Data Analytics | Mercer 2019

Our Thinking / Health / Fast Focus: Trends and Insights Redefining the Benefits World

Transforming Flex Benefits with Data Analytics
Calendar22 May 2019

Offering flexibility in the workplace has become more commonplace, with more employers seeing the value of providing a greater variety of benefits and allowing employees to select the most suitable option for themselves and their families.  However, some employers are still struggling with the flex benefits design and implementation.

This is because employers are using traditional approaches to building and communicating benefits choices.  Flexible benefits programs require a facelift in the digital age and this is accomplished through the use of data analytics and personalised communication.

Today’s employees not only expect more personalised benefits, but also guidance on how to use them in an easily accessible way.  They want to be able to access personal data insights at any time with any device.  By integrating data with technology, employers can offer a ‘personal coach’ on-demand that provides:

  • Self-assessments that help employees understand what benefits they may need, enabling employees to select suitable benefits choices.
  • Easy access to claims history to understand past needs and help inform future ones.
  • An online marketplace for employees to purchase additional benefits like travel insurance, fitness activity trackers or DNA screenings.
  • Helpful medical cost information such as average cost of clinical consultations, typical hospital surgery costs, etc. for employees to make smart choices.
  • Interactive guidebook to illustrate benefits offerings to support employees through their life events, such as marriage, birth of newborn, promotion.
  • Reminders for employees to take action on their benefits.
  • A tailored rewards statement to help an employee better understand the value of their benefits package.

But the advantages of data analytics aren’t just for employees.  Employers can leverage real-time data using an online platform to better understand how benefits are being utilised.  With the click of a button, you can see data charts and insights like employees’ selections, program usage and demographics for specific countries, using real-time data insights.

This enables employers to review program effectiveness and make decisions on the plan design based on real-life data points.   

With the right technology and analytics mixed with personalised communication, the full potential of flex benefits programs can be realised.  This not only has huge returns for an employer but also the employee.  In fact, a recent Thomsons Online Benefits report found that 79% of employees surveyed who reported a variety of benefits to choose from also said they would recommend their employer to a friend.  

Using data analytics coupled with targeted communication enhances the employee experience and helps companies maximize the ROI for the benefits it provides its workforce.  With flex benefits playing such a big role in staff retention and bringing on new talent, can you afford to miss out by using old methods?

  Contact a Mercer consultant.
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