In the movie Moneyball, we saw how a baseball team used analytics and evidence-based data to identify tendencies and create a competitive advantage against teams that spent far more money on big name ballplayers. If it can be done in professional baseball – where the talent gap is often razor thin – then can it be used in the same way in building high-performing employee benefit plans? You bet!
The simplicity of a marketing spreadsheet often masks the hidden costs of making ill-informed decisions on employee benefit plans. Not unlike any other purchase, those who lean on quality data, utilization reporting, and benchmark data will likely see a better return on their investment. In the world of employee benefits, there are three keys to mapping out a cost-effective benefit program.
- Understand your population with demographic data. Effective benefit planning is not a one-size-fits-all approach. Taking a close look at demographic data can help provide insights into what an employee population needs, what they value, and where an employer can make the best use of scarce benefit dollars.
- Understand what the other guys are doing. Everyone is interested in what their competition is up to – and the employee benefits business is no exception. Quality benchmark data can reveal strengths and weaknesses in benefit programs, and opportunities to either reduce operating costs, or leverage what you do well to recruit and retain the best employees.
- Networks are a number game! Most people won’t buy a car without knowing what mileage and maintenance costs are. Those “unknowns” can really add up! When clients review Dental and Vision plan options without considering the value of a strong, relevant network are not seeing the entire picture. Carriers may have data and comparative reporting that can show value well beyond what they pay in premium each month. Often, a low-cost plan may have high out-of-pocket costs, with limited network pricing arrangements for clients to save money. The bottom line: a high-performing network can help reduce out-of-pocket expense, improve client satisfaction, and reduce time spent negotiating out-of-network invoices.
Utilizing reliable data and analytics is a great way to differentiate, make smarter recommendations, and add greater value for your clients in 2017. Where can you access credible information to make this happen? The information is out there, and many leading carriers can help provide data and guidance. Just like the Oakland A’s created a winning solution on the field, you too can benefit from the use of data, analytics, and comparative reporting to change the game in 2017!
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