Authors: Dean Aloise John Jurik Jill Spielberger
Despite significant investment in healthcare, financial wellbeing, culture and talent, many companies are wondering if these efforts are genuinely moving the needle on employee engagement and wellbeing. What was once considered a top-tier benefits package may no longer be competitive.
So, how can you know if your organization is truly winning the race to a healthier, more financially secure and engaged workforce? It's time to start assessing real value by evaluating existing strategies and leveraging innovative tools.
The concept of VOI: Measuring success beyond dollars
Traditionally, benefits programs have been evaluated through the lens of return on investment (ROI), focusing on tangible metrics like cost savings or direct reductions in claims. However, ROI overlooks the broader, more qualitative outcomes that benefits can deliver.
Shifting focus to value on investment (VOI) can help capture the intangible yet powerful results that may not immediately show up in a financial ledger — such as improved morale, reduced stress, higher engagement or stronger retention.
Dean Aloise, US Enterprise Segment leader at Gallagher, said, "VOI highlights the responsibility of large employers to foster an environment that supports both employees and customers."
The shift from ROI to VOI reflects a more holistic and forward-thinking approach to evaluating the success of benefits programs. For large enterprises, VOI delivers results by:
- Providing a competitive edge in the talent market
- Enhancing employee engagement and productivity
- Building a trusted and reputable brand
- Strengthening the employer-employee relationship
Harnessing data to deliver personalized benefits
For large employers, a one-size-fits-all approach no longer works. The key to creating a truly impactful benefits program is enabling personalization and hyper-personalization. Personalization means moving beyond generic annual surveys and using anonymized and aggregated data to predict and cater to employees' real-time needs.
By analyzing various sources — such as claims and usage data — and conducting frequent, targeted surveys on topics like stress or financial wellness, companies can build predictive models. Models allow them to proactively offer the right resources, education and coaching to the right people at the right time.
The need for personalization extends beyond employees. Large organizations should also expect customization from their service providers. A consulting firm, for example, shouldn't treat a nuclear solutions contractor the same as a healthcare system.
AI and human connection: Striking the right balance
AI is already transforming how benefits are delivered and managed. It can be used to prompt employees toward healthier behaviors, help them navigate benefits more easily and enhance the employee experience by streamlining internal processes.
Instead of a generic search function, an AI-powered chatbot could respond to a user's specific query. For example, if a user searches "I'm pregnant," a chatbot can instantly provide a list of relevant resources, from maternity leave policies to healthcare options for newborns. This kind of intelligent, intuitive support streamlines the employee experience.
For employers, AI can analyze vast amounts of data, including body mass index (BMI), population health, medical visits and program participation to provide transformative insights.
While AI offers incredible capabilities, the human element remains critical to engagement and trust. But employers must strike the right balance between leveraging AI for efficiency and maintaining personal connections.
John Jurik, national practice leader, Retirement Plan Consulting at Gallagher, said, "After introducing a large physician group to our financial planners, one of the physicians hired us to manage a significant portfolio of their personal assets after previously relying on digital tools and advice."
AI should enhance, not replace, the human touch. A healthcare system in New York faced significant changes to its financial benefits programs. Gallagher's team conducted extensive educational efforts, including group meetings and one-on-one sessions, to help employees understand the changes. This personalized approach drove engagement and highlighted the importance of tailored solutions.
6 areas employers should consider to get more value from their benefits program
- Shift from ROI to VOI: Focus on improvements in employee engagement, attraction and retention; cost savings aren't the only measurement of success.
- Listen to your workforce: Move past traditional annual surveys and actively use data, frequent pulse surveys and one-on-one conversations to uncover what employees truly want.
- Personalize solutions: Customize the design, communication and delivery of benefits to meet the needs of a diverse workforce.
- Leverage omnichannel communication: Tailor messaging and use a mix of communication channels — digital, print and in-person — to ensure employees receive information in ways that resonate with them.
- Integrate AI thoughtfully: Approach AI with a discerning eye. Separate the hype from genuine value and ensure that you balance digital tools with essential human connection.
- Make it a smooth experience: Treat benefits as an ongoing, year-round experience that builds trust and strengthens the employer and employee relationship.
Create a meaningful experience
The benefits journey isn't about who spends the most on benefits or launches the newest programs. It's about whether employees feel supported, informed and confident in their health and financial wellbeing.
When a Gallagher client noticed their people weren't engaging with their benefits, they rebuilt the experience. The result? A bold new benefits brand and annual enrollment campaign that helped employees understand their benefits in a new light. "Understanding the needs, fears and goals of the individuals in your workforce is the foundation for making a difference in their lives and in your business", says Jill Spielberger, managing director, US Communications and Engagement practice at Gallagher.
What's your biggest challenge in measuring benefits success? Partner with our specialists to build a customized benefits program for your people.
