4 Ways a PEO Helps Create Tailored Benefit Plans

Quick look: Employees seek a range of flexible, affordable healthcare options, challenging brokers to find creative ways to achieve this ideal combination for their small- and medium-sized business (SMB) clients.

Customization is the new normal, with everyone tailoring their lives to get exactly what they need, when they need it. This is a main factor when choosing benefit plans, causing brokers and SMBs to search for a solution appreciated by everyone.

At the surface level, it seems the simplest way is to provide a few benefit options and require employees to choose from what’s available. However, this long-held strategy is unsustainable when it comes to employee recruitment and retention.

Rather, relevancy has become a top priority when creating health plans. Factoring this in maximizes employee benefit participation and optimizes costs for SMB employers, achieving a win-win scenario.

But how do you determine which health plan options are the most relevant?

Fortunately, increased data accessibility affords the ability to deliver the comprehensive benefits employees want. With the help of a professional employer organization (PEO), brokers can build tailored health plans to meet this urgent demand while complementing SMB growth.

Here are four ways a PEO leverages data for benefit customization and creates new opportunities for brokers and their clients:

1. Geography-based coverage

Over the past several years, the geographical distribution of employees has expanded cross-country and, in many cases, internationally. With the surge in remote and hybrid working models, there’s been a call to balance access to in-network providers with a reduction in out-of-network costs.

By factoring in the geography of a SMB’s work population, a PEO partner can create benefit plans with coverage where employees reside. For instance, ensuring telehealth is an included option is advantageous for those living in rural areas who don’t have convenient access to a healthcare provider or those with limited time and resources to meet with a provider in person.

However, this level of accessibility should extend beyond geography alone. A PEO can explore options to ensure provider networks also include diversity in services, including supplemental benefits, as well as flexible care hours and transparent pricing.

2. Demographic-influenced priorities

Multiple generations active in the workplace means demographic information is essential when considering how to shape benefit plans. Age, gender, and differing healthcare priorities all require options which accommodate a broad spectrum of needs.

For example, Gen-Z employees may prioritize mental health and preventive wellness benefits. Whereas, millennials may consider a health plan with extended coverage for their family or one which includes chronic care management.

The goal is to align benefits to these types of specifications while simultaneously addressing the impact of costs.

3. Employee surveys

Generating regular employee feedback is often overlooked as a way to create effective benefit plans. Analyzing industry benchmarks, employee preferences, and workforce data will help shift health plans to ensure enrollment participation and overall employee satisfaction and engagement.

A PEO can help implement surveys and retrieve employee data to drive decision-making when evaluating potential health plan changes. Maintaining relevance to confirm employee needs are met is crucial to workplace productivity and retention and serves as a competitive advantage when recruiting top talent.

4. Industry trends

Traditional health plans don’t always account for what the majority of employees want or even need. Over the past several years, mental health support and long-term healthcare benefits have been on the rise in employee requests.

Understanding how industry trends impact individual work populations is necessary, and offering flexible healthcare options which can adapt to these shifts is key.

How data-driven strategies benefit broker clients

Leveraging data to create tailored HR solutions keeps business goals on track by managing cost-effectiveness and compliance while ensuring employees are educated on available benefit offerings.

Cost-effectiveness

Even with a greater focus on customization, cost-effective plans are still critical for SMBs. By partnering with a PEO, brokers provide clients accessibility to premium benefits at affordable prices as well as identify other areas where savings can be applied.

Compliance

Benefit compliance is another factor in determining health plans and their advantages. This includes awareness regarding health saving account contributions, claims processing, reporting requirements, and other tracking data pertaining to employee relations and labor laws.

Education

Research shows a majority of employees cite a lack of understanding regarding their benefits. With the amount of time, effort, and cost necessary when revising health plans, it’s important for employees to understand the value provided, which in turn, helps boost enrollment and plan participation.

Harnessing the power of a PEO

From managing compliance regulations to keeping up-to-date with market trends, there are complexities and ever-changing factors set out to disrupt the best-laid health plan. Knowing how to analyze data and using it to tailor benefit plans positively impacts both employers and their employees.

As a people-first PEO, ExtensisHR collaborates closely with SMB leaders to customize HR plans best suited for their specific needs. While some companies prioritize containing costs, others may focus fully on expanding accessibility to healthcare. Aligning benefit options with overall organizational objectives leads to a successful business strategy.

Furthermore, a PEO partner has the expertise, resources, and tools to provide SMBs and their employees with what they need to better understand their options. This knowledge keeps employees engaged and encourages them to ask questions and take preventative measures to benefit their health.

The greater the engagement, the greater the benefit utilization, resulting in overall cost optimization for SMB leaders. It’s worthwhile to review current health plans and confirm they align with the unique needs of today’s employees.

SMBs want a more personalized experience when shaping their health plans. Brokers who leverage a PEO partnership automatically extend their offerings to deliver on this demand and differentiate themselves among competitors.

Learn how our team of HR experts can support you in strengthening your client relationships and protecting your portfolio. Contact ExtensisHR today.