Inflation coupled with reported talent shortages are likely to last well into 2023, if not longer. Also concerning, 75 percent of companies have reported talent shortages and difficulty hiring. Given that attracting and retaining talent can make or break an organization’s success, companies and HR leaders must think outside the box to provide competitive benefits and compensation packages. One often overlooked opportunity to improve benefits and enhance compensation? Benefit decision support.  

Why financial savings tools matter:  

Expectations regarding employee compensation are changing drastically. Inflation is at its highest level since 1982. In recent months, many companies have been increasing wages to account for inflation and compete despite the talent shortage. Because of these factors, employees are more likely to make decisions about their jobs based on compensation packages. About 56 percent of workers report they would leave their employer if another offered a higher salary, indicating that insufficient pay along with lackluster benefits are key drivers in high turnover and recruiting challenges.  

How decision support fits in:  

Salary increases are an obvious opportunity to bridge the gap between an employee’s income and the rising cost of living. However, not all companies will have the freedom to drastically increase salaries, and, even if they can, these increases may still not cover increased employee costs. In 2023, employers should consider decision support tools that give employees the clarity that they need to confidently choose the right health plan and benefits. These tools can positively affect compensation, overall benefits, and employees’ financial and physical wellness. Here’s three reasons why:  

  1. Health benefits are part of employees’ total compensation package: total compensation includes direct compensation (base salary) and indirect compensation. The latter includes employer-paid health and voluntary benefit coverage. Benefit decision support tools can help employees understand the value of this total compensation package, showing employees how much their employer pays for health insurance, as well as other benefits like life insurance and short-term disability coverage. Given that 49 percent of employees will leave their job in the next 12 months over lack of benefits, helping employees understand their benefits package can go a long way towards recruiting and retaining talent.  
  1. Decision support tools help employees save on health care costs: most employees could save money by making better health plan and benefits selections. In fact, employees who use Decision Doc typically save over $1,300 on healthcare costs. This is a big number given current financial restraints—and one that employers can and should share with their employees. By offering a decision support tool that brings these high savings, employers show that they are committed to getting employees the highest value for their benefits.  
  1. Employees care about personalized benefits: more and more, one-size-fits-all benefit packages are becoming a thing of the past. Younger generations will have different needs and motivations than employees in other stages of life. For example, Baby Boomers may be focused more on long-term care insurance and retirement planning, while Generation Z is more interested in mental health and wellbeing benefits. Good decision support tools not only help employees choose benefits that reflect their needs; they also help employers better understand their employees’ needs. Decision Doc includes detailed reporting about how different employees engage with their benefits, so employers can customize their offerings to best protect employees’ health and wellness.  
  1. Decision support is vital for attracting younger generations: Selecting benefits can be complicated to navigate. This is especially true for younger employees who tend to be less knowledgeable about health insurance, less comfortable asking questions of their HR department, and less clear on what their current plan offers. Offering benefit decision support will lead to higher job satisfaction rates, which is crucial in attracting and retaining young talent.  

Now is the time for employers to bolster their benefits package by adding benefit decision support. This simple step can make it easier for companies to attract and retain talented employees amongst the current workforce challenges.  

Want to see how Decision Doc can help and save your employees potentially thousands of dollars? Schedule a demo today