Unlocking the Power of Data: How Analytics Personalize and Improve Benefits Communication

When it comes to benefit communication, data analytics has the potential to transform your strategy—from simply pushing out generic information to delivering personalized, actionable insights that resonate with your employees.?

?A recent study conducted by McKinsey & Company found that leveraging data-driven insights in internal communication led to a 20-25% increase in employee engagement. To move the needle, you need to go beyond the one-size-fits-all approach to more deeply engage your workforce and drive better results.?

?Here’s how using data can help you improve your benefit communication strategy.?

?Data: The Magic Ticket for Personalization?

Utilizing data allows you to shift from a generic communication strategy to a highly personalized one, tailored to individual employee needs, life stages, and preferences. Instead of sending out the same message to every employee, you can deliver targeted, relevant content that speaks directly to their unique situation.??

There are three types of data that enable more personalized communication opportunities:? ?

• Engagement Metrics: By monitoring key engagement metrics (e.g., email open rates, click-through rates, and participation in benefits-related events), you can see where employees are engaging—and disengaging—and the effectiveness of your communication with them.?

• Survey Data: Use surveys or polls to gather employee feedback on what they understand about their benefits, what they still find confusing, and what additional information they need. Data from these surveys can highlight areas where communication is unclear or incomplete.?

• Behavioral Data: Data analytics can also show you how employees are interacting with your benefits. Are they using the tools you’ve provided? Are they engaging with videos, reading articles, or clicking on health-related benefits? When do they typically access these tools? This type of data can point to the channels, timing, and content that resonate best with different employee groups.?

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Segmenting Your Workforce for More Effective Communication?

Employees in different life stages (e.g., newly hired, mid-career, nearing retirement) have vastly different priorities, so your communication strategy should reflect that. In your communications planning, begin by considering:???

• Data-Driven Segmentation: Leverage employee data to segment your workforce into groups based on life stage, health status, family structure, or job role.?

• Personalized Messaging: Once segmented, you can craft targeted messaging that speaks directly to the unique concerns and needs of each group. For example, younger employees may be more focused on student loan repayment and wellness programs, while employees nearing retirement may need more information on retirement benefits and healthcare in retirement.?

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Behavioral Science in Action?

We helped a client leverage employee data and behavioral science to impact retirement plan participation by using the Attention, Education, Behavior Change framework:?

Attention:?We segmented messages to fit various employee groups?by age, salary, and current participation level. In other words, the message was relevant and personalized to THEM. After all, what motivates employees in their 20s to contribute is vastly different than the motivation for employees age 50+ who are closer to retirement. We also mailed this information to the home, so it was readily available for the spouse/partner to see.?

Education:?We explained the retirement benefit in easy-to-understand language, avoiding the typical retirement plan jargon. Using their salary data, we highlighted exactly how much money they were leaving behind by not participating—not only were they not receiving their employer’s matching contribution, but they weren’t benefiting from compound interest on contributions that accumulates over time. By showcasing REAL numbers, we helped them to understand that a little change—even upping their contribution by 1-2%—can make a big impact.?

Behavior Change:?This approach resonated more than previous communications on the same topic—it bumped participation by 12% in a short period.?

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Actionable Steps for Implementing Data-Driven Benefits Communication? ?

1. Start with the Data: What does your data reveal to you? What behavior can you identify across your benefits communication channels? What behavior are you trying to change???
2. Segment Your Audience: Use the data to segment your workforce and tailor your messages accordingly.?
3. Measure and Adjust: Continuously measure the effectiveness of your communication strategy, using data to make adjustments as needed.?
4. Test New Channels and Formats: Use A/B testing to find the best formats and channels for reaching your employees. Data from these tests can reveal what works and what doesn’t.?

?By leveraging the power of data, messages are timely, personalized, and effective in delivering the result you want: higher engagement, better utilization of benefits, and a more informed workforce.?

?Are you ready to take your benefits communication strategy to the next level? Contact us for a free consultation, or check out our on-demand communications workshop.?