Need to know:
- Workforces are changing rapidly so employers need to be clear about what personalisation means.
- Technology-driven personalisation of health and wellbeing benefits supports the current trend towards a preventative rather than reactive approach to healthcare.
- Technology-based personalised approaches must, ultimately, drive better decision-making to engage employees.
For many years, employers were limited in their ability to offer employee benefits that truly resonated with the needs of their staff. Today, employees expect benefits tailored to their unique needs and lifestyles, with technologies such as artificial intelligence (AI! increasingly making this a reality.
By analysing huge amounts of data, including demographics, preferences, and claims histories, technology-driven platforms can tailor employee benefits to individual lifestyles, making them feel truly personal at scale. For example, someone with a young family can receive different private medical insurance options to a single person who is nearing retirement. Wellbeing programmes can be tailored to an individual’s stress levels or fitness goals. Greater personalisation, ultimately, leads to greater satisfaction and retention.
Key functionalities
On the basis that personalisation is associated with flexible benefits, benefits administration platforms are increasingly seen as the way forward. However, there are some key technological functionalities to consider, says Matthew Gregson, executive director at Howden Employee Benefits.
Firstly, the technology must be able to communicate with employees based on demographics such as age, gender, and family status. “This should lead to targeted messaging, ensuring employees receive information relevant to their needs,” he says. “For example, factoring in someone’s age and earnings to pension communications should lead to much better targeting of take-up and contribution rates.”
Personalisation-capable tools that allow employees to better understand and even quantify their needs are also important. For example, with life cover, rather than just giving employees the option to flex, the technology should include, or link to, life cover calculators to improve an individual’s decision-making before they act.
“Ultimately, a personalised benefits plan relies on a seamless, integrated experience,” adds Gregson. “Technology should connect targeted communications with tools and resources, then present relevant benefit options, creating a personalised employee journey. With the growing use of AI, we see significant opportunities for hyper-personalisation, further enhancing the employee experience.”
Tailored benefits
Virtually all benefits can be tailored to a personalised journey, but employers first need to be clear about what personalisation in the benefits sector means, says Jo Werker, chief executive officer (CEO) at Boostworks. At the content level, for example, discounts, being able to offer the right retail or partner content that resonates with the individual user but is also broad enough to appeal to all members of multi-generational workforces is a challenge.
“The benefits sector hasn’t really changed in over 30 years, yet the workforce has and is still undergoing a massive change,” adds Werker. “We have four- and five-generation workforces, but by 2030, the forecast is that 75% of the UK workforce will be millennial. Technology has a huge role to play in supporting this changing workforce in terms of better benefits awareness, delivery and redemption use. There’s also a potential role for AI to help curate a personalised EVP [employee value proposition].”
Data-driven approach
The use of technology to personalise benefits is especially important when it comes to health and wellbeing support. Increasingly, the employee benefits landscape is shifting towards a preventative rather than reactive approach to healthcare. A data-driven approach is key to offering personalised benefits that can include healthcare plans, mental health support, financial wellness initiatives, and flexible work arrangements.
Duncan Schofield, innovation lead at Benenden Health, says: “Technology and data allow platforms to tailor healthcare services, such as enhanced GP access, physiotherapy, or specialist consultations, which, in turn, improves employee satisfaction while addressing health concerns proactively by understanding the employee’s history.
“Another example is personalised mental health programmes, including on-demand counselling and wellness apps, that ensure employees receive the right level of support. By taking a proactive approach to employee wellbeing, businesses can create a healthier, happier and more productive workplace.”
Utilisation of data
A personalised benefits proposition will also need to use data-driven decisions to refine personalisation and engage employees. This includes educating them on the factors involved in life cover, providing tools to calculate their needs, and demonstrating the impact of employer interventions. Ultimately, a personalised approach must drive better decision-making.”
David Kirk, growth leader of technology and health solutions at Aon, says: “One size fails all when it comes to employee benefits and as a result, the data presented as part of the programme is constantly changing as the lives of employees change. Managing and using the data, not reacting to a past event but using it to predict the future, enables a proactive personalised benefits programme.”
