5 Costly Employee Benefits Mistakes Keeping CFOs and HR Leaders Up at Night (and How to Fix Them) ??

Are you losing sleep over rising healthcare costs and a lack of transparency in your benefits strategy? You’re not alone. But if you’re still working with the same old approach, you might be making costly mistakes that put your company and employees at risk.

In this edition of The Benefits Bridge, I’m diving into the five most common mistakes companies make when managing employee benefits and how fixing them can transform your bottom line and employee satisfaction.

1. Rushed Renewal Processes: A Recipe for Disaster ??

When your renewal process is rushed, you end up with fewer options, less leverage, and a plan that likely doesn’t fit your business. Many companies don’t realize the impact of their broker’s “fire drill” approach until it’s too late.

What We Did to Solve It: We planned months in advance, giving ample time to analyze data, negotiate better rates, and offer diverse plan options that aligned with the company’s financial and cultural goals.

2. One-Size-Fits-All Plan Designs: Limiting Choice Costs More ??

Finance and HR teams often receive cookie-cutter plans with no variance in choice. This approach might seem simple, but it ignores the unique needs of your workforce, leading to higher costs and lower employee engagement.

What We Did to Solve It: We provided customized plan designs tailored to the company’s specific workforce demographics, offering a range of options like high-deductible health plans, HSAs, and other solutions that saved money while giving employees the flexibility they needed.

3. Lack of Employee Support: Where’s the Help When They Need It? ??

Employees frequently face challenges with their benefits but find themselves alone when seeking help. With no support other than going directly to the carrier, the process becomes frustrating and complicated.

What We Did to Solve It: We implemented dedicated support systems, including hotlines and online portals, where employees could get answers and resolve issues directly with our team. This ensured employees had the support they needed without the hassle of dealing directly with carriers.

4. Inadequate Communication Materials: HR Teams Carrying the Weight ??

This HR department was left to create communication materials themselves, which wastes time and often leads to inconsistent messaging. When employees don’t understand their benefits, participation and satisfaction plummet.

What We Did to Solve It: We provided professionally designed communication materials that aligned with the company’s brand, clearly explained the benefits, and engaged employees effectively, saving the HR team time and ensuring consistent messaging.

5. Poor Network Access: Dental and Vision Plans Missing the Mark ?????

The previous broker, was bundling this company's dental and vision plans with life and disability carriers that lease networks, leading to poor provider access and employee dissatisfaction. Employees then struggle to find in-network care, causing unnecessary stress and dissatisfaction.

What We Did to Solve It: We evaluated and replaced the inadequate networks with providers that offered comprehensive access, ensuring employees could find care easily and without barriers. This led to improved satisfaction and utilization rates.

The Bottom Line: Don’t Settle for Average—Get Ahead with the Right Partner ??

If any of these issues sound familiar, it’s time to rethink your benefits strategy. Our approach isn’t about offering the same old solutions; it’s about providing a comprehensive strategy that aligns with your goals, supports your employees, and drives down costs.

If you’re tired of the same results and ready to make a change, let’s talk. I guarantee your business—and your employees—will thank you. ??

Connect with me or schedule a consultation to start building a benefits strategy that works for you, not against you.

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