5 tips for avoiding overlapping health and wellbeing benefits
Businesses always welcome projections of falling inflation and lower interest rates for the UK economy. However, amid these prospects, SME businesses face escalating costs, with 58% of companies citing it as their top concern, according to research from the Association of Chartered Certified Accountants (ACCA).
Also, despite a recent global CEO survey from EY suggesting a “quiet confidence among UK business leaders” at the start of 2024, 96% are considering restructures or hiring freezes, a reduced focus on learning and development and a move from permanent to contract workers as they adapt to economic conditions.
Among the areas ripe for savings is employee benefits and wellbeing, where overlaps can lead to double payments for the same service. Conducting a strategic review will help companies better navigate these markets more efficiently, enabling them to help identify duplication, save costs and improve engagement.
Navigating health and wellbeing benefits
Navigating the health and wellbeing benefits available on the market can be daunting, given the vast range of products, which can often leave businesses overwhelmed with choices. This complexity can lead to companies inadvertently purchasing benefits without realising they may be available elsewhere, such as insurers offering Employee Assistance Programmes within group risk benefits.
Additionally, businesses may sign up for services on an ad hoc basis, especially when different teams are responsible for benefits and wellbeing. For example, an individual may introduce a new service, like a meditation app, without ensuring its alignment with the overall health and wellbeing strategy and budget and without realising that they have access to one already through an insurance product.
Top tips for streamlining benefits
1. Conduct a comprehensive review
Start by examining all benefits to clarify offerings and identify potential overlaps. This involves a thorough evaluation of insurance products and value-added services, extending to standalone health and wellbeing offerings implemented by the employer outside of its core benefits offering.
2. Identify gaps in provision and usage
Once businesses understand what benefits they have, they can identify gaps in provision and where they may be paying for services twice. They will also need to determine whether the added value services cater to the entire workforce or only insured employees, which may not always be the same. Looking at usage levels will also pinpoint benefits less valued by its workforce as a whole, or potential communication gaps where employees simply are not aware of a benefit or how to access it.
3. Compare services or products
Comparing services or products is a vital aspect of the review process. Take, for instance, the comparison between two virtual GP services: if one is bundled with an insurance product, it may not be the premium version of the service and could be restricted to those insured under the policy. A standalone option may be a more expensive option but may offer a more comprehensive service. Assessing offerings, accessibility, coverage, service levels and financial implications is crucial for making informed decisions during the review.
4. Due diligence on stand-alone products
Firms should carry out comprehensive due diligence of all providers they are working with on a standalone basis to ensure service quality and reliability. Part of this process should be comparing other providers in the market and assessing their proposition on its merits, reviewing their financial strength and looking at their management information.
5. Improve engagement and communications
Looking at engagement and communication as part of the review process is important too. Effective communication is essential in helping employees understand all the benefits that are available and how they can be accessed. This can help determine what benefits are more highly valued or those that are hardly used which can be useful in devising future communications and any changes to the wellbeing support being offered.
Conducting a review enables firms to streamline benefits as well as minimise duplication, and control costs. Savings can be reinvested into employee benefits and wellbeing or to address any gaps in provision.
Howden Employee Benefits & Wellbeing provides robust review support and guidance in navigating the complex employee benefits landscape.
In partnership with Howden Employee Benefits & Wellbeing
Howden provides insurance broking, risk management and claims consulting services, globally. We work with clients of all sizes to provide dedicated employee benefits & wellbeing consultancy.
