1 February 2024 – Only one in 10 employers can use data modelling to demonstrate the value of benefits packages to their employees, according to new research from Buck, a Gallagher company, in partnership with the Reward & Employee Benefits Association (REBA).
The ability of employers to attract recruits, as well as retain existing ones, must be urgently addressed as the skills gap widens further and the battle for talent intensifies. Employers may be sitting on a vast reserve of useful data, but without the proper analytical tools, they cannot use the statistical insights to align benefits packages with their long-term strategic goals.
In the coming years, there will be an increased focus on ensuring employee benefits packages are not only supporting company strategy but delivering a significant return on investment. Almost three-quarters (73%) of businesses surveyed said increasing cost pressures in the current economic environment will impact benefits strategies, up from 52% in 2022. Therefore, if employers can successfully leverage their data, they can ensure benefits schemes are delivering more value for their people and withstand rising costs.
However, the overwhelming majority of employers still fail to leverage the data available to them. If employers fully leveraged their proprietary data, they could quickly model the costs of running a benefits package and examine employee engagement levels with their offering. Not only can this help demonstrate value to board members, but it can also help to future proof the benefits package through the identification of demographic trends.
For employers, enhancing and installing analytics tools will be a key priority this year. At present, only one in 20 (5%) employers use a benefits platform that offers advanced analytics on user behaviour, allowing them to see the gap between what they are offering and what employees truly want. Despite this, 91% said this functionality would be highly effective, indicating that there is an appetite to increase investment in analytics tools.
The Buck, a Gallagher company and REBA Data and technology research report can be accessed here: https://buck.com/uk/survey-reba-data-and-technology-research-2023/
John Deacon, Head of Employee Benefits at Buck, a Gallagher company, comments:
“Although employers are eager to optimise service across their employee benefits platforms, there remains a gap between what they would like to implement and what they have in reality. Many employers agree that enhanced analytics and a single sign-in portal would unlock huge advantages, but far fewer have these vital technical measures in place.
“Employers not only require a cutting-edge technological solution to generate data-driven insights from their benefits platforms, but a formalised strategy for maximising the value of their data and streamlining the user experience. As the research shows, many employers have long wish lists, but not enough have a plan to realise these aspirations. Platforms with advanced analytics can give employers the insights needed to support their business and HR objectives, so business leaders need to think beyond the ‘what’ of technology and also consider the ‘how’ of delivery, usage, and implementation.”
ENDS
Methodology
The data analysed in this report is based on the responses from 140 employers who represent over 1,127,000 employees.
About Buck
Buck, a Gallagher company, is an integrated HR, pensions, and employee benefits consulting, technology, and administration services firm. Founded more than 100 years ago as an actuarial consultancy, we’ve evolved to serve organisations and Trustees across the health, wealth, and career spectrum.
With the ultimate goal of securing the futures of our clients’ employees and members, we develop tech-enabled programmes that engage individuals and drive organisational performance. Our award-winning engagement solutions and people-first approach empower the world’s most forward-thinking organisations to protect the physical and financial wellbeing of their employees and members and improve how their people work and live. For more information, visit www.buck.com.
About Gallagher
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
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