Employers are striving to attract and retain talent, support employee wellbeing and maintain a healthy and productive workforce, while employees are looking to their employer for more than just an income. One third of organisations in Australia already pay for insured employee benefits as part of the total reward package* (Mercer’s Australian Benefits Review 2022) such as: life insurance, income protection or health insurance.
Employee benefits can address both employer and employee needs, However, as a significant employee expense, it is important to make sure the money invested in employee benefits is working for you, your brand and your employees.
Here are a few things to consider to make sure you are getting the most from your benefits:
Many insurers have aimed to differentiate themselves in the market through their added-value services and offerings. For example, health insurers may offer specific corporate products and discounts, wellness funding and/or support with wellbeing related initiatives, promotions and activations, retail vouchers and discounts, and other value-adds. Income protection insurers may provide a full wellness package, second opinion doctor services for employees and their families, fitness initiatives, or wellness funding (dependent on the size of the group insured) - these are benefits that are often included but not taken advantage of.
Most income protection insurers will provide access to occupational rehabilitation to help support getting your sick or injured employee back to work as soon as possible, even if a claim has not yet been submitted or the waiting period expired.
A market review will help your organisation understand whether switching or retaining the current provider is the best approach. Your considerations should not only include price but value, employee feedback, and perhaps how the provider can offer more via added-value benefits as mentioned above. It’s not just about choosing the provider with the lowest premium, but finding the sweet spot depending on your specific needs.
An additional benefit of embracing these programs is to complement existing insurance programs. Wellness initiatives or early intervention strategies can minimise claims, as a result we have seen significant savings when approaching the market at rerate time; particularly when these programs are supported by data-backed evidence of reduced claims experiences and notice periods of claim lodgement. In one such case we were able to achieve over 80% reduction in premiums after providing the insurance market key insights into how the client was addressing rising claims with a robust targeted wellness program and early intervention framework.
In many instances, the communication of benefits is issued in an employee’s starter pack and never mentioned again. This means you are missing out on the benefit of reminding your employees they are valued and cared for and you will support them in ways that matter to them.
Educating your employees on the benefits that your organisation are paying for, can help to support a culture of care and boost morale. When it comes to benefits supporting employees staying healthy and productive, communication of these benefits – through tools such as company intranet, employee newsletters and corporate meetings - will increase the likelihood of the employees using them and benefiting from them. Mercer Marsh Benefits can assist you with your benefits communications to ensure the key messages of the benefits on offer are delivered. Further, with more comprehensive insurer value add services, the insurer will provide complete communication packs, including marketing material and on-line portals.
If you need assistance on where to start implementing an employee benefits insurance package or are simply looking to review your existing employee benefits offering, we are here to help. Mercer Marsh Benefits can support you in your journey to building a healthy, protected and productive workforce.
Article
13/10/2024
This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. LCPA 23/129
