Investing in Digital Employee Benefits Platform: Talent Acquisition and Healthcare Management

Amidst escalating competition for talent and mounting healthcare costs, the decision to select an employee benefits programme has emerged as a pivotal strategic imperative, permeating boardroom discussions and stakeholder deliberations due to its profound impact on organisational success and employee satisfaction. Today, we delve into the importance of investing in the right platform that provides maximum value to all stakeholders.

The Employees

The War for Talent has evolved into a strategic imperative for every organisation. As Generation Z (Gen Z) is expected to represent 27% of the workforce[1], employee expectations and the workplace environment have dramatically changed. One of the key factors in attracting talent is benefits, as Gen Z place great emphasis on their well-being at work. This has important implications for organisational commitment to benefits and healthcare programme design.

Gen Z are the first true digital natives, and they demand tools that support self-managing conditions or healthcare more broadly. Moreover, employers that help people protect themselves financially, for instance by offering them the option to buy or select personal insurance, stand to be appreciated by their young employees.

The Employers

Traditionally, benefits administration has been a complex and time-consuming task for human resource professionals. Automated systems that streamline enrollment, process claims, and provide valuable insights into employee well-being help reduce the burden of administrative tasks and allow HR departments to focus on strategic initiatives. The integration of a healthcare benefits platform and human resource system also enhances communication channels, ensuring employees have easy access to information about their benefits and wellness programmes.

Pairing the rise of treatment costs with the growing demand for personalised benefits, employers are looking for solutions that can deliver increased efficiency, provide data analytics that drive future planning and ultimately make the benefits process easier.

The Insurers

The WTW Global Medical Trends Survey[2] revealed a notable surge in APAC's average medical care costs, spiking from 7.2% in 2022 to 9.9% in 2023. Projections for 2024 indicate that this high-cost trend is anticipated to persist, remaining steady at 9.9%. Aside from overprescribing by medical professionals, Insurers also highlighted other contributing factors such as poor lifestyle habits, underuse and lack of preventive care services, and inadequate understanding of medical plans that led to medical cost increases.

An effective way to contain medical care costs is to detect health issues earlier. Therefore, employers and insurers are considering promoting regular health screenings and providing benefits, including digital health tools, that allow employees and families to manage their health and well-being. Doing so will allow employers and insurers to develop effective, value-based cost-containment strategies that provide access to quality and affordable care to their employees.

Moreover, 75% of insurers worldwide report that utilizing contracted networks of providers is their foremost method for efficiently handling medical expenses, highlighting its effectiveness in cost management.

In conclusion, the evolving landscape of talent acquisition and healthcare management underscores the critical importance of investing in digital employee benefits platforms. As organizations navigate intensified competition for talent and rising healthcare costs, a platform that offers multifaceted solutions that align with the needs of stakeholders is much needed. Moving forward, it is imperative for companies to recognize the strategic value of employee benefit platforms and consider implementing tailored solutions to stay competitive in today's dynamic business environment.

[1] Oliver Wyman Forum’s 2023 A-Gen-Z Report (https://www.oliverwymanforum.com/global-consumer-sentiment/a-gen-z.html)

[2] 2024 Global Medical Trends Survey (https://www.wtwco.com/en-sg/insights/2023/11/2024-global-medical-trends-survey)