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Helping Your Employees Find the Right Plan for Them

by Inoventive Solutions
October 28, 2025

Studies have found that nine out of 10 employees opt for the same benefits every year and that around a third of workers don’t fully understand the group health plan benefits they are enrolled for.

Staying in the same plan after year can be a waste of money if someone is in the wrong plan for them. And not understanding benefits can lead to wasted money as well, as workers often skip necessary appointments, check-ups and treatment regimens for chronic conditions, which in turn puts their health at risk.

As coverage has grown in complexity over the past decade, it’s important that you provide the resources for your employees to choose the health plan that is best for them. Here are three tips that will help them get the most out of their benefits.

Don’t skimp on explaining

While some employees’ eyes are bound to gloss over while someone is explaining the various plan options, their networks, their copays, deductibles and more, it pays to take the time to explain them step by step.

That means breaking the benefits down to the basics in language anyone can understand. Avoid getting bogged down in health insurance jargon and keep it simple. The simpler the better.

Don’t think of it as talking down to your employees, because there’s a good chance some of them are not familiar with how health coverage works. Encourage questions, by telling them there are no stupid questions. Invite employees to speak one-on-one with your benefits point person if they have questions they’d rather ask privately.

Make benefits communications all year long

When the new year starts and open enrollment is in the mirror, most employers don’t reach out to staff until a few weeks before the next year’s enrollment period starts.

Plan now for regular benefits communications throughout next year. Send them e-mails and materials during the course of the year that remind them to consider how their current coverage is measuring up to their needs.

This is especially important if someone’s health situation changes. They may be looking to make a change during the next open enrollment, and feeding them periodic memos about their coverage can help them educate themselves and prepare.

Communications could include explainers about cafeteria plans, health savings accounts, how to use their health benefits wisely, and more.

Know your crew

After open enrollment, run a report looking at what plans your employees are signed up for and see if they are concentrated in certain plans. Many employees when choosing health plans ask their co-workers, which often leads to them choosing a plan that is not optimum for them since there are many factors that may vary, including:

  • Their age.
  • Whether or not they are married.
  • Whether or not they have children.
  • Their health situation.

That’s why it’s important to run some analytics on your employees’ health plan choices. We can work with you to make sure that they are in the right plans and identify what might be a better alternative for them.

For example, in many cases, the younger and healthier someone is, the best choice may be a high-deductible health plan with lower premiums, tied to an HSA. Older employees and those with health conditions — those who are more likely to use medical services and be on medication — may need a plan with a lower deductible.

The takeaway

It benefits both your employees and you if your employees are in the appropriate plan for their life and health situation.

Fortunately, you can ensure that they understand their benefits by understanding their needs and helping them learn about their benefits throughout the year.

"Cancer
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Cancer Care Costs Surge for Group Health Plans

by Inoventive Solutions
October 21, 2025

As cancer rates rise among working adults, treatment has become one of the fastest-rising expenses in employer-sponsored health plans, according to a new survey.

The survey by the International Foundation of Employee Benefit Plans (IFEBP) found that 86% of employers have seen their cancer care spending increase over the past year, with a median rise of 11%, making it one of the most significant contributors to overall health care cost growth.

As more employees get diagnosed with cancer, which in turn increases the cost of care for employers, they are increasingly turning to strategies that direct plan members to high-quality, cost-efficient providers and care facilities.

What’s driving the trend

Employers report that cancer-related costs are increasing due to a mix of:

Expensive specialty drugs — Many of the newest cancer drugs can cost $20,000 to $40,000 per month, while gene and cell therapies can top $1 million per course. Even with negotiated network discounts, the compounding cost of these treatments is straining plan budgets.

New treatment technologies — New high-cost therapies like immunotherapies and gene-based treatments are regularly coming on line.

A higher number of working-age adults being diagnosed with cancer — New cancer diagnoses are expected to exceed 2 million cases in 2025, with rising rates among women under 50 and cancers such as colorectal, breast and cervical appearing more often in younger age groups.

More people are surviving cancer — Employees and their dependents are entering treatment phases earlier and remaining in survivorship programs longer, adding sustained costs for employers.

How employers are responding

Employers are increasingly turning to steerage techniques that direct plan members to high-quality, cost-efficient providers and care pathways. According to IFEBP, the most common approaches include:

  • Nurse navigators (63%) to help employees coordinate complex care.
  • Second-opinion programs (58%) to validate treatment plans.
  • Centers of excellence (42%), which offer bundled, value-based pricing.
  • Treatment center networks (24%) and virtual care clinic vendors (18%).
  • Value-based contracts (17%) and point-of-care testing (15%).

Among employers using these strategies, the primary goals are:

  • Improving outcomes (66%),
  • Offering personalized support (59%) and
  • Negotiating lower prices (33%).

Nearly a third is experimenting with alternative payment models such as shared-savings or bundled-rate arrangements that tie reimbursement to results rather than the volume of care.

Prevention and early detection

Experts say early detection offers the greatest potential to control both costs and outcomes. However, only about half of employees receive annual preventive care, and a significant portion of catastrophic cancer claims is linked to individuals who skipped routine screenings.

Employers can help by:

  • Promoting annual preventive exams and age-appropriate cancer screenings.
  • Covering or incentivizing genetic and biomarker testing for at-risk employees.
  • Incorporating AI-assisted diagnostics and at-home testing options for early detection.
  • Providing educational campaigns on modifiable risk factors such as smoking, obesity and inactivity.

To manage this, benefit professionals are urged to take a comprehensive, life-cycle approach from prevention and early screening to treatment navigation and survivorship care. As Julie Stich, IFEBP vice president of content, noted, employers must “offer the most effective cancer care treatments while also exploring cost-control techniques.”

"Voluntary
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Voluntary Benefits Are No Longer Optional

by Inoventive Solutions
October 14, 2025

With health insurance costs continuing to climb, many employers are finding that standard medical coverage alone doesn’t offer enough financial protection for their staff.

Rising deductibles, higher out-of-pocket maximums and the soaring cost of care are pushing workers to look for other ways to fill the gaps. Employers can step in to meet that need with voluntary benefits.

Once considered optional add-ons, voluntary benefits such as accident, hospital indemnity, critical illness, group life, dental and vision insurance are increasingly becoming essential parts of a well-rounded benefits package. Wellness programs, employee assistance plans and financial counseling options are also now viewed as integral to overall well-being.

A shift in expectations

Prudential’s “2025 Benefits and Beyond” study found that nearly a quarter of employees expect these voluntary benefits to be included as part of a modern workplace offering. But often, employers are not providing the benefits that employees say they need. The poll found that 86% of employers say their benefits are modern, but only 59% of employees agree.

This discrepancy has started to resonate with employers. As a result, 70% of employers plan to make changes to their benefits offerings within the next two years, with 22% expecting significant overhauls.

Employees say their biggest concerns are:

  • Saving for retirement (45%),
  • Covering everyday expenses (44%),
  • Paying for housing (29%), and
  • Simply making it from paycheck to paycheck (26%).

When a single medical event can upend financial stability, benefits that offer supplemental protection can provide an important financial backstop and save an employee from financial disaster.

Why voluntary benefits matter now

Voluntary benefits provide cost-effective coverage options that protect employees from the unexpected.

For example:

  • Accident, critical illness and hospital indemnity policies help offset out-of-pocket costs that major medical insurance doesn’t cover, such as co-pays, deductibles, transportation, lodging and lost income during recovery.
  • Dental and vision plans promote preventive care that can reduce larger medical costs over time.
  • Wellness and mental health programs, another key element of today’s voluntary benefits landscape, help employees manage stress and anxiety that affect productivity and retention. (In Prudential’s research, 63% of employees said they have mental health concerns for themselves or a family member, yet only about the same share feels their benefits help them manage overall well-being.)

Benefits for both sides

Expanding voluntary benefit offerings and ensuring you have the benefits your employees really want support recruitment and retention while containing costs.

Because these plans are typically employee-paid through payroll deduction, they add value without significantly raising the employer’s benefit budget. Employers also gain a competitive advantage in a labor market where workers expect more comprehensive protection and well-being support.

Employees gain access to affordable coverage that helps them manage risk and avoid financial hardship. For many, paying a few extra dollars per paycheck for supplemental coverage can prevent a small setback from becoming a financial crisis.

"Employers
Uncategorized

Employers Eye Disruptive Changes to Rein in Health Costs

by Inoventive Solutions
October 7, 2025

With employers bracing for another steep rise in health care expenses, many are preparing “disruptive” changes, according to a new report.

Employers surveyed for the “WTW 2025 Best Practices in Healthcare Survey” said they anticipate their health care costs will increase by 9% in 2026. They told researchers they can’t absorb the increases or pass them on in full to employees, and instead hope to chip away at costs through a multi-pronged approach.

Since your are likely experiencing cost pressures as well, here’s a look at what your peers are experiencing and doing about it.

Where employers will focus

Managing vendor contracts — Survey results show 46% of employers are actively evaluating vendor performance.

Pharmacy benefit managers are under particular scrutiny, with three-quarters of employers either bidding out or planning to rebid their PBM. Many are also exploring more transparent, pass-through contract models.

Conducting audits — One-third of employers already conduct medical claims audits, and nearly half plan to add them. Another 22% have reviewed prior authorization or out-of-network payments, with 34% planning to.

These audits help uncover overpayments, billing errors or inappropriate authorizations. By increasing oversight, employers can identify waste, enforce contract terms and make sure vendor processes align with plan rules.

Preventing overutilization and abuse — Unchecked use of services remains a top cost driver, especially for specialty drugs, imaging and inpatient procedures. 

Employers are taking a closer look at utilization controls, including stricter prior authorization, step therapy for high-cost drugs and site-of-care management to steer members toward lower-cost outpatient settings.

Note: Step therapy involves trying other lower-cost methods first, such as other proven medicines that aren’t as costly as new medications.

Alternative plan designs — Currently used by 41% of companies, alternative plan designs are expected to grow rapidly, with adoption potentially reaching 87% within two years.

These designs may include:

  • Tiered or narrow networks,
  • Transparent cost tools, and
  • High-performance primary care models.

Employers are also using technology and enhanced navigation to guide employees when choosing providers. By structuring benefits to reward use of cost-effective, high-quality providers, employers told WTW they hope to chip away at growing costs while improving the employee experience.

The takeaway

If you are are concerned about rate hikes, talk to us about steps you can take to get a better handle on your health plan by incorporating some of the steps listed above.

"Seven
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Seven Steps to a Successful Open Enrollment

by Inoventive Solutions
September 30, 2025

If you view annual open enrollment as a simple box-checking exercise, you’re likely missing out on helping your staff get the most out of the benefits you provide.

Instead, if you approach open enrollment as a chance to strengthen employee engagement, control costs and help your workforce understand the full value of your benefits program, you’ll likely boost participation and satisfaction among your staff.

With health care costs rising, financial stress growing and multiple generations in the workforce, employers need to approach open enrollment as a strategic initiative rather than a compliance deadline. This is more important than ever given rapidly rising premiums that will affect both your organization and your staff.

Here are seven best practices to keep in mind:

1. Focus on generational needs

Employees at different life stages want different things from their benefits:

  • Gen Z often looks for flexibility and mental health resources.
  • Millennials focus on balancing family and financial security.
  • Gen X may prioritize saving for retirement.
  • Baby boomers often care most about health coverage and stability.

Tailoring communication and plan design to these priorities can boost engagement across the board.

2. Avoid two big mistakes

Employers often make two main mistakes you’ll want to avoid:

  • Overloading employees with materials and presentations full of jargon. This is a sure way to lose their interest.
  • Failing to provide the necessary support to help them make decisions about which plan to choose.

Keep messaging simple, practical and easy to understand. Provide comparison tools, FAQs and one-on-one support when possible so employees don’t feel lost.

3. Do what works

Personalize your benefits education by providing tailored communications for each generation in your workplace. Use multiple communication channels like text messages, e-mail, print materials and the company intranet.

Help employees understand how benefits support their physical and mental health as well as their long-term financial security.

4. Provide year-round benefits communications

Regular benefits communications throughout the year can make open enrollment much easier for your staff. Some ideas include:

  • Reminders about their benefits and how they can use them.
  • Micro-learning tools, which deliver training in short, focused lessons through platforms like mobile devices and learning management systems. These tools improve knowledge retention and boost engagement.
  • Fact sheets on the benefits they are eligible for to help them discover options they may not know about but would like to have.

5. Plan ahead

The most effective open enrollment strategies are carefully planned. As part of this process:

  • Review last year’s open enrollment results.
  • Set clear goals.
  • Segment your employee population to identify gaps and opportunities.
  • Track outcomes so you can improve each year.

6. Consider new tech

Digital decision-support tools, including AI-driven platforms, can simplify open enrollment by providing employees with personalized plan recommendations.

These tools also give HR teams valuable data on employee behavior and preferences, which can guide future plan design and communication.

7. Play up the benefits of benefits

Frame your offerings as a stabilizing force. Emphasize that benefits provide consistency and protection when life is unpredictable, giving employees confidence that their health, income and families are supported no matter the circumstances.

By framing benefits as a safety net, you can show your staff how these programs help provide stability in daily life.

Takeaway

Employers who approach open enrollment strategically — with a focus on affordability, engagement and education — can turn a required process into a competitive advantage.

By meeting employees where they are and communicating clearly, you reinforce the value of your benefits program and strengthen trust within your organization.

"short-term
Uncategorized

Feds Won’t Enforce Short-Term Health Insurance Limits

by Inoventive Solutions
September 23, 2025

The Departments of Labor, Treasury and Health and Human Services announced that they will no longer enforce a 2024 rule limiting short-term health insurance to three months.

The decision leaves the door open for insurers to once again issue these policies for up to three years, as they were permitted under rules implemented during President Trump’s first term. The agencies emphasized that the rule itself remains in place but said they “do not intend to prioritize enforcement actions” against plans that exceed the Biden-era restrictions.

Officials also signaled that they are considering further changes to how these policies are regulated, though no timeline was outlined.

A shifting regulatory landscape

Short-term health plans have been a political football across three administrations.

  • In 2016, the Obama administration finalized a rule limiting the plans to three months, calling them temporary stopgaps.
  • In 2018, Trump extended the maximum duration to one year and allowed renewals up to three years. Sales surged after that change.
  • In 2024, the Biden administration rolled back the expansion, capping the plans at three months with no more than four months of total coverage including renewals.

With the latest move, enforcement of that cap is on hold, giving insurers room to once again sell longer-duration plans.

How the plans work

Short-term policies are typically less expensive than Affordable Care Act-compliant coverage because they are not subject to ACA rules. These plans were originally envisioned as a bridge between jobs or coverage transitions, not as long-term solutions.

For smaller employers that are not subject to the ACA’s mandate to offer affordable health coverage, short-term policies could be an option for workers seeking lower-cost alternatives.

But because short-term coverage is distinct from comprehensive health insurance, employers evaluating whether to steer workers toward these plans should understand the trade-offs:

  • Preexisting conditions can be excluded.
  • Coverage can be denied based on health history.
  • Annual and lifetime benefit caps may apply.
  • Preventive care, maternity care and mental health services are often not included.
  • No protection under ACA consumer safeguards such as the No Surprises Act or parity requirements for mental health.

Short-term plans can also exclude certain benefits that ACA plans are required to cover.

State restrictions

While federal regulators are stepping back, states still control whether these plans can be sold within their borders.

Fourteen states plus the District of Columbia bar them altogether, including California, New York and New Jersey. Other states allow them but impose strict duration limits or conditions that make them impractical for insurers to offer.

Potential changes ahead

The agencies noted they are considering additional adjustments to the rules governing short-term plans. Possible areas of change could include:

  • Redefining the maximum duration,
  • Revisiting required consumer disclosures,
  • Imposing new standards for renewals, and
  • Allowing for stacking of policies.

 Any proposed rulemaking would undergo a public comment process before becoming final.

Takeaway for employers

The federal decision creates uncertainty in the market, with enforcement discretion now favoring longer short-term policies but no clear timeline on new rules.

Employers with fewer than 50 employees may see these plans as a possible option for workers, but larger employers remain bound by ACA requirements to provide affordable, minimum-value coverage.

As the agencies move toward potential new regulations, employers should monitor developments closely and weigh the risks and limitations of short-term health plans before considering them as part of a benefits strategy.

"group
Uncategorized

New Study Predicts Higher Group Benefits Inflation

by Inoventive Solutions
September 16, 2025

Employers are preparing for what could be the steepest annual increase in health care costs in more than a decade, and many are considering plan design changes, including cost-shifting, to buffer the impact, according to a new report.

The “2026 Employer Health Care Strategy Survey,” conducted by the Business Group on Health, found that business executives project a median 9% rise in costs for 2026, but expect a 7.6% increase after making plan design changes to address major cost drivers. Here are the biggest concerns and how surveyed employers plan to address them. 

1. Obesity treatments add pharmacy pressure

Pharmacy spending has grown to nearly a quarter of employer health care costs, driven largely by demand for GLP-1 drugs such as Wegovy, Mounjaro and Zepbound. Employers report that 79% have already seen increased use of these medications, and another 15% expect growth in the years ahead as the drugs gain FDA approval for additional conditions.

These treatments, effective for both diabetes and weight loss, often cost more than $1,000 per month. Employers are responding by:

  • Requiring “step therapy,” which involves trying proven, less expensive methods or medications before prescribing a GLP-1,
  • Limiting prescriptions to employees with diabetes and a qualifying body mass index,
  • Requiring prior authorization,
  • Mandating participation in weight management programs,
  • Approving prescriptions only from designated providers, and
  • Reducing GLP-1 coverage altogether.

2. Cancer drives long-term costs

For the fourth straight year, cancer has topped the list of conditions driving employer health care expenses. Rising diagnoses, delayed preventive care during the pandemic and an aging workforce are combining to push treatment costs higher.

In response, more employers are expanding cancer prevention and screening benefits, removing age limits for preventive screenings and covering access to cancer centers of excellence. About half of large employers expect to offer such centers by 2026, with more considering them by 2028.

3. Mental health demand continues to grow

Nearly three-quarters of employers report higher use of mental health and substance use disorder services, with another 17% expecting further increases soon.

While nearly all employers now offer mental health support, the challenge is balancing costs with access to appropriate care. Larger employers with more resources are providing access to centers dedicated to acute mental health conditions.

Cost-shifting and vendor changes

More employers are considering passing some of the health care cost burden onto employees. According to a recent Mercer survey, half of large employers said they will likely:

  • Increase employee premium cost sharing,
  • Raise deductibles, and/or
  • Hike out-of-pocket maximums in 2026.

In the Business Group on Health study, most employers said they would at least consider shifting costs to workers if needed.

At the same time, companies are rethinking vendor relationships. Forty-one percent reported changing or reviewing pharmacy benefit managers, while others are reassessing wellness and medical benefit partners.

Transparent PBM models and alternative health plans are gaining traction as employers look for greater value and predictability.

Recommendations

The Business Group on Health report noted that employers can do more than pass along costs to workers, by:

  • Assessing the effectiveness of benefit programs and vendors, and eliminating those that deliver limited value.
  • Helping employees — through training and an open-door policy for questions — use plan resources and navigation tools to find providers that deliver high-value care.
  • Encouraging staff to stay on top of check-ups, doctor visits, medications, screenings, tests and immunizations.
  • Requiring vendor partners to adopt transparent and sustainable financial models, particularly for pharmacy benefits.
"open
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Open Enrollment Prep: Survey Your Staff to Fine-Tune Your Benefits

by Inoventive Solutions
September 12, 2025

As the year-end open enrollment period approaches, now is the time to fine-tune your benefits, and that starts with surveying your employees about their views of your current offerings.

There should be more to this effort than checking boxes. It’s important that you elicit an honest assessment from your employees, and once you have their responses you need to process and analyze them with the goal of exploring changes that will benefit your staff.

Surveys are not exercises in futility. A recent study by Aflac found that while four out of five employers think their workers are satisfied with their benefits, only three in five employees say the same. That disconnect can result in employers offering benefits year after year that their staff may not value.

Offering the wrong benefits can be costly, considering that benefits account for between 30% and 40% of total compensation, according to the Bureau of Labor Statistics. That’s a lot to spend on something you don’t know is generating a solid return on investment.

Employee survey components

Structure your surveys so that you can identify:

  • Which benefits employees value most,
  • Where current offerings are inadequate, and
  • Emerging needs or preferences (e.g., mental health, flexible work, student loan assistance)

Areas you may want to cover in your survey include:

  • General satisfaction with benefits and whether there are any they want but you don’t offer.
  • Health care coverage affordability, coverage depth and network satisfaction.
  • Participation in wellness programs, satisfaction with mental health support and learning opportunities.
  • Overall impressions, understanding and usefulness of current benefits.

You may want to dig deeper into views on your most important benefit, group health insurance, by asking questions like:

  • How well does the current plan cover your needs?
  • Do you feel the current plan’s deductibles and copayments are fair?
  • Do you believe the current plan offers good value for the cost?
  • How easy is it for you to find in-network providers for the health care you need? 
  • Are there any specific types of specialists or facilities you wish were more accessible in our network?
  • How easy is it to understand your benefits and how to use them?
  • How can we better communicate information about the health plan?
  • How satisfied are you with the customer support related to the health plan?

Digging deep

The next step is picking through the answers to identify trends and opportunities. As your health insurance broker, we can help digest the information and develop a plan for you. We can also segment the findings by age, family status (kids or no kids) or job function to better personalize offerings that match your employees’ needs.

Once we do that, you can prioritize which potential actions make the most sense, are feasible and would make the largest impact. We can then make a plan that includes:

  • Short-term changes: Low-cost, high-impact adjustments
  • Mid-term changes: Plan design or contribution changes
  • Long-term initiatives: Introducing a new benefit category

Final thoughts

Even small improvements show employees that their voice matters.

Just remember that many people have short attention spans, so ensure the surveys don’t take longer than five or 10 minutes to complete.

Also, arrange for the surveys to be submitted anonymously so your staff will feel free to speak their minds.

Whatever changes you decide to make must also be communicated to the employees, so they understand what’s coming and why the changes are being made. This shows that you took the survey seriously and responded with action.

Your transparency will build credibility, especially if changes take time.

"Group
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Group Health Plan Affordability Levels Up, Giving Employers a Break

by Inoventive Solutions
September 2, 2025

The IRS has significantly increased the group health plan affordability threshold, which is used to determine if an employer’s lowest-premium health plan complies with Affordable Care Act rules, for plan years starting in 2026.

The threshold for next year has been set at 9.96% of an employee’s household income, up from 9.02% this year. The higher threshold will give employers more wiggle room when setting their workers’ health insurance premium cost-sharing level to avoid running afoul of the ACA. In addition, penalties for failing to provide coverage that meets the affordability threshold will rise 15% in 2026.

Under the ACA, “applicable large employers” — those with 50 or more full-time or full-time equivalent employees — are required to offer at least one health plan to their workers that is considered affordable based on a percentage of the lowest-paid employee’s household income.

If an employer’s plan fails this test, it will be deemed non-compliant with the law, resulting in penalties for the employer.

The new threshold will apply to all health plans whenever they incept in 2026. The affordability test applies only to the portion of premiums for self-only coverage, not family coverage. If an employer offers multiple health plans, the affordability test applies only to the lowest-cost option. 

Calculating

Employers can rely on one or more safe harbors when determining if coverage is affordable:

  • The employee’s most recent W-2 wages.
  • The employee’s rate of pay, which is the hourly wage rate multiplied by 130 hours per month.
  • The federal poverty level.

Penalties

Failure to provide affordable coverage can result in a penalty of $5,010 per affected employee in 2026, up 15% from $4,350 in 2025.

Another penalty, known as the Employer Shared Responsibility Payment, will also increase. This penalty applies to employers that fail to offer minimum essential coverage to at least 95% of full-time employees and their dependents, and when at least one full-time employee purchases exchange coverage and receives a premium tax credit.

This penalty, which applies to the total number of full-time employees (minus the first 30), will rise to $3,340 per employee in 2026, also up 15%.

The above penalties are both indexed to inflation.

The takeaway

As 2026 approaches, it is important to review health plan costs and premium-sharing to ensure your lowest-cost option complies with the ACA affordability requirement.

We can help assess affordability and confirm your plans meet the standard, so your firm stays compliant.

"The
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The Importance of Evaluating Your Benefits Annually

by Inoventive Solutions
August 26, 2025

While traditional benefits like group health insurance and 401(k) plans remain foundational, employers who limit themselves to the same offerings year after year may find themselves outpaced in the competition for talent.

Regularly evaluating your benefits package ensures it stays relevant, competitive and cost-effective — and ultimately supports your efforts to attract, retain and engage employees.

Doing this is increasingly important as the last of the Baby Boomers exit the workforce and more Gen Z workers are hired and put to work. Besides generational changes, workers’ needs may shift due to social trends, medical advances and lifestyle changes.

When employers fail to update their offerings, they risk wasting resources on underused benefits or losing valued employees to competitors with more relevant and supportive programs. Conversely, a dynamic, well-calibrated package signals that you care about your employees’ well-being and are in touch with what they value.

How to assess effectiveness

Measuring the success of a benefits program isn’t always straightforward, but several tools can help:

Employee surveys: Poll your workers about which benefits they use, which they value most and what they wish was included. Use both structured and open-ended questions to gather insights. Consider segmenting responses by demographics to detect differing needs.

Utilization data: Track how often employees take advantage of each benefit. Low utilization may mean a benefit is poorly communicated, difficult to access or simply not valued. High usage, especially when tied to positive outcomes, signals success.

Key performance indicators: Monitor metrics such as employee productivity, engagement scores, absenteeism and turnover. Improvements in these areas may be tied to the effectiveness of certain benefits. There might also be no correlation, but they’re still worth tracking.

Turnover trends: If your organization is experiencing higher-than-usual turnover, especially among high performers, your benefits package may not be meeting employee expectations.

Regular feedback loops: Consider holding periodic focus groups or one-on-one discussions. These offer valuable information that goes beyond survey numbers.

Benchmarking keeps you competitive

Employers should also compare their benefits to industry peers. Resources such as SHRM’s Employee Benefits Survey, consulting firm whitepapers and insurance agency reports can reveal trends and standards in your sector.

For example, more than 90% of employers now offer telehealth options, and an increasing number are extending mental health resources, menopause support and caregiving benefits.

Cost-effectiveness and impact

Not all benefits need to be expensive to make a difference. For instance, flexible scheduling, expanded telehealth access or a wellness allowance may deliver high perceived value at a manageable cost.

For example, a wellness allowance is a fixed amount of money provided by the employer that staff can spend on their health and well-being like gym memberships, fitness classes, mental health apps and more.

Review spending against usage and satisfaction levels, and consider whether reallocating dollars could deliver better outcomes.

We can also help you identify underused or high-cost benefits that may be ripe for replacement — or negotiate better vendor terms.

Takeaway for employers

Just like you measure your business’s performance, ROI, profits and more, you should take time, at least annually, to evaluate your benefits package.

If, based on your evaluation, you plan to make changes to your benefits lineup, including eliminating a benefit, there will always be some staff who won’t be happy about it.

Make sure to be transparent about why and how the decision supports employee needs. This builds trust and demonstrates a responsive, employee-first mindset.

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