Too often when buying health insurance, companies will try to simply manage the expense. While this is a good idea, it only covers a portion of what really matters. Let me explain.
When employers offer benefits to their staff they are usually trying to accomplish something. It could be better recruitment efforts or increased retention or improved employee engagement or higher productivity or taking care of their staff who are more like family. You get the picture. This is a great place to start. If you’re going to spend a lot of money on something, you want to make sure it has a goal in mind. The problems comes when employers aren’t clear about what they want it to accomplish or, if they are clear, fail to measure if they are getting that Return on Investment. If only 20 percent of your staff value your benefit program then you’re throwing a lot of money down the drain.
Sure, the monthly premium you pay is an important piece to consider. But, don’t forget to measure what you’re ultimately trying to buy: loyalty, engagement, productivity, better staff...whatever it is. Be clear about it and don’t forget to measure it.
What are you doing to measure your return? Share your experience in the comments.
Holly Parsons with The Wilson Agency, a full service strategic employee benefits consulting firm, helping Alaskan businesses to develop an organized approach to complex employee initiatives.
The Wilson Agency, LLC 3000 A Street, Suite 400 Anchorage, Alaska 99503
907.277.1616 info@thewilsonagency.com
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