Time to call on benefit providers to “do the right thing”

As the initial three-week lockdown period is extended and businesses hunker down for the potential long-haul, on behalf of employees and employers, we call on those benefit providers that have yet to reveal how their products and services will continue to provide value during – and immediately after – the COVID-19 pandemic to provide much needed clarity.

There are some benefits that employees simply cannot utilise right now – and might struggle to make use of for some time after the social distancing and lockdown restrictions are lifted. If providers continue to do and say nothing, the long-term negative impact on employer and employee wellbeing – not to mention on provider reputation – could be profound.

The REBA Pay & Benefits webinar series is helping to highlight some of the current complexities facing HR leaders. One of the main areas of focus in its first webinar was on holiday trading. Faced with vastly different priorities post lockdown – not to mention potential financial difficulties – participants discussed what can be done to help employees unpick flexible benefits choices made pre-crisis.

Of course, holiday trading isn’t the only area that demands focus and attention. The relevance of certain other benefits is also now brought into question.

Some providers are being very proactive and tweaking their service offering to ensure ongoing value. For example, diners club Tastecard is actively promoting its affiliated restaurants that are offering home delivery services. And, in response to the shift in buying behaviours, it’s also offering discounts on Rakutan TV, fitness, coffee, florists, electronic and physical board games.

Also, group risk providers have by and large indicated that, aside from some predicted delays in obtaining GP reports where group income protection (IP) claims are concerned, it’s business as usual. Some have clearly stated that group IP claims are being accepted even where employees are furloughed. And their pre-furlough salary will be used for claim assessment purposes.

But these providers remain in the minority.

New norm. New rules.

Although the silence from many was, up until now at least, somewhat understandable considering the rapidly evolving situation, we can now say with certainty that this isn’t just a three-week pause in business as usual. We’ve got some way to go before any sense of ‘normality’ is resumed.

So, as we settle into the new norm, it’s time for all providers to show their hand. If they don’t, there’s a very real risk of damage to brand reputation and trust. In some cases, employers and employees may find they’ve paid for products and services that they’re unable to use for up to a quarter of the year or more.

Let’s take a look at a couple of specific areas of concern, by way of an example.

Dental cover

All dental practices are currently shut on advice of the government Chief Dental Officers. Patients in some practices that were due to be seen in March have been moved to May, but this will be rolled back further as time goes on.

Consequently, there could be massive problems for this sector once we’re out of lockdown. It’s typical, in a ‘normal’ environment, for anyone who’s ever had to rebook an appointment to find themselves either really lucky that they happen upon somebody else’s cancellation or, more likely, waiting several months for a new appointment.

Dental Insurance and Health Cash Plans provide cover for an average two check-ups a year. Plus, in many cases, emergency cover. So, imagine the difficulties faced by surgeries trying to meet the demands of those with cover to get their moneys-worth, while also squeezing into a much shorter year the backlog of routine appointments that had to be cancelled during lockdown, never mind emergency treatment.

The NHS is currently in the process of setting up emergency dental hubs in each county, which will be available to private patients too. A few of these are already up and running – generally at dental hospitals or at existing emergency dental clinics. Demand is high and patients will only be seen in extreme emergencies. Right now, lost fillings causing pain and tooth pain in the absence of swelling aren’t currently being seen, but this situation could change quickly when the hubs are up and running. In the meantime, the advice to dentists is to provide the three ‘A’s’ over the phone: Advice; Analgesics; and Antibiotics.

Travel insurance

The travel insurance sector is already facing big potential problems. Government guidelines in certain countries haven’t decreed that hotels and other forms of accommodation should close. Yet, at the same time, Foreign and Commonwealth Office (FCO) guidelines are advising against non-essential travel. Individuals have no choice but to cancel their holidays and, in such circumstances, they won’t get a refund.

Instead, travel operators have advised that people claim on their insurance. However, not all travel insurance policies are the same. And those that only cover for emergency medical expenses while travelling simply wouldn’t cover such scenarios.

If value isn’t realised by policyholders, their employers will also bear the brunt, meaning cancellations are likely and next year’s renewals will inevitably take a hit.

Proactivity could pay

While we – as a flexible benefits and payroll administrator – are speaking to providers on behalf of employees and clients, in response to a constant flow of customer queries about the kind of issues raised in this article, we also urge HR leaders to feed back any concerns to their own providers.

This is for everyone’s benefit: no-one wants to leave employee health and wellbeing potentially exposed now or in the future. And it’s important to bear in mind that if policies lapse, particularly where Private Medical Insurance (PMI) is concerned, the cost of taking out a new policy could prove prohibitively expensive.

Of course, this call is also for the benefit of providers. All businesses need to be aware of public sentiment – at all times, not only during the current crisis.

We live in a society that is guided by instant gratification and allegiances to brands based on trust. For those companies that get it wrong, retribution is very public and very swift. Consider the instant backlash against certain big brand names when their leaders got their messages to employees and consumers entirely wrong as we entered lockdown.

Trust builds reputation. And reputation builds business success.

The financial services sector has faced trust issues for many years. It has appeared as the least trusted sector for nine years running, according to the 20^th annual Edelman Trust Barometer, published in January 2020. At a time when consumers and employees are, more than ever, looking for brands to make a difference, the sector is presented with an ideal opportunity to build some of that much needed trust.

The author is Tim Brook, Head of Engagement & Platforms, Equiniti HR Solutions.

This article is provided by Equiniti HR Solutions.