Record inflation of the last few years has steadily been slowing; however, many Americans aren’t seeing the impact on their wallets. A recent American Psychological Association survey found that more than 70% of Americans report financial stress—the highest level in the last decade.
Similarly, PwC reported last year that nearly 60% of employees surveyed are struggling financially, and those pressures are impacting their sleep, mental health, self-esteem, physical health and relationships. Yet, despite the rising spotlight on employee wellbeing post-pandemic—with employers increasingly taking a holistic view of wellbeing through comprehensive employee benefits offerings, experts say—those who could most benefit from such support are the least likely to utilize it.
The 2024 Alight Winning with Wellbeing report found that less than half of employees surveyed use the healthcare benefits and retirement contributions their employers offer; the top reasons employees cite for not signing up for such benefits are unaffordability and benefits that are not worth the cost.
Researchers found that awareness of benefits is also an issue. For instance, about one-third of workers in households with a family income of more than $200,000 say they are aware of all the benefits their employer offers—compared to just 4% of workers in households with less than $50,000 in annual income. About one-third of this population also says their employer only provides basic wellbeing benefits, despite employers diversifying such offerings.
“People who don’t understand their benefits and who don’t use their benefits are the most likely to be disengaged and the most likely to say they’re going to leave their employer,” says Rob Austin, head of thought leadership at human capital tech provider Alight Solutions. He notes that the connection between underutilization of benefits and turnover can have a real impact on an employer’s bottom line. “When you’re spending on ramping people up,” Austin says, “you’re not necessarily getting the dividends at the front end.”
A key driver of higher benefits utilization—and better employee wellbeing—is effective benefits communication, Austin says.
According to Alight’s research, workers who are the least likely to say they understand their benefits are also the least likely to say they’ve been overcommunicated to about their benefits. Employers could stand to expand the “scope and breadth” of their benefits communication, particularly among lower-income workers, Austin says—but in a more targeted, relevant way.
“Take the 401(k) plan,” Austin says. “By its very nature, the 401(k) plan is filled with jargon, so you have to make it more approachable. Sometimes, [lower-income workers] are the first savers out of generations in their families, so the 401(k) vocabulary may not be something they understand.”
The demand for more relatable benefits communication can be answered in part by artificial intelligence, Austin says. AI’s ability to offer personalized benefits information and recommendations mirrors the consumer interactions employees are having outside of work.
“If you go to Netflix, it recommends what other people like you are watching. If you go to Amazon, it recommends other products related to your purchases,” Austin says. “The same can be said here with benefits and wellbeing offerings.”
AI-powered benefits communication can have a “downstream impact,” Austin says, allowing workers across income levels to understand what’s available to them in a way that is “easier to navigate.”
Blue Care Advisor: An AI-powered tool seeing results
Artificial intelligence is key to a new tool from Blue Cross and Blue Shield of Minnesota: Blue Care Advisor. Rolled out last year to more than 1 million of the health plan’s commercial users, the tool offers features related to claims, benefits, deductibles, wellness programming and customer service—in an effort to enhance awareness and utilization of benefits by members, while also strengthening employer understanding of their workforce’s health needs.
“All the information needed to empower people to make educated decisions is available, but it can be difficult to access and understand,” says Matt Hunt, chief experience officer of Blue Cross and Blue Shield of Minnesota, a nonprofit licensee of the Blue Cross and Blue Shield Association. “The conception of Blue Care Advisor marries two critical objectives: affordability of care and ease of use.”
Leveraging AI, the tool supports and personalizes digital communication between BCBS Minnesota’s service agents and members—a feature Hunt says members were eager for.
“The ability to provide this level of experience for members came through as important in feedback from real experiences by members of all ages and varying comfort levels with technology,” he says.
AI analysis and data modeling also enable Blue Care Advisor to predict health risks among members, based on their health profiles, and offer personalized recommendations for their healthcare.
On the employer side, the tool gives business leaders access to employee health data “in incredible detail,” Hunt says. Its Mission Control feature “curates, analyzes and presents aggregated insights in an easy-to-use reporting solution that allows employers to manage their health plans and control costs.”
Leaders can gain insights on the health conditions most prevalent in their workforce and the information their workers are looking for, and they can use the platform to communicate directly to their workers about these issues, Hunt says.
The payoff for both employees and employers is already being realized.
Members using Blue Care Advisor are twice as likely as non-users to schedule preventive exams—based on data about mammograms, wellness exams, cervical and colorectal cancer screening tests, and HbA1c tests. Given Deloitte research that found health inequities among the five highest-cost health conditions have ballooned annual avoidable healthcare spend by more than $320 billion, better access to preventive care for all employees is critical, Hunt says.
“I believe Blue Cross has an obligation to reduce and eliminate existing disparities so that everyone can experience an affordable and effective healthcare system,” he says.
The AI-infused member experience appears key to the success the organization has seen thus far with the tool: More than 60% of members have utilized the tool at least once every 90 days; 87% say they are satisfied with the customer service interaction and nearly 80% say they can understand their medical costs with the assistance of the tool.
“In all, when it comes to efficiency, personalization and the ability to create positive change, the value of AI is immense,” Hunt says.
Balancing tech, human approaches to employee wellbeing
Given the role AI can play in promoting better employee wellbeing, it’s critical that technologists create products—and HR evaluate them—with an eye toward fairness and equitable access, Hunt notes.
“I’m committed to ensuring that [Blue Cross Advisor] continues to be revised and updated by what we hear from real people—members and employers—and what we teach the technology to value,” Hunt says. “By embracing the best of what technology has to offer with a very human-centered approach, I believe we can all grow our understanding of our own health with the confidence needed to navigate an increasingly complex healthcare ecosystem.”
While technology like AI can enhance communication about benefits, HR needs to ensure the underlying benefits program itself is impactful for the needs of the workforce.
For instance, when it comes to finances, Austin says, employers can consider offerings like debt-management resources, budgeting tools, investment assistance and emergency-savings support—benefits that Alight’s research found are still slow to gain traction among employers.
Money remains the top stressor for employees, he notes, an issue particularly resonant for lower-income workers. While financial wellness benefits won’t alleviate all employee stress, strengthening access to comprehensive support in this area can promote better employee wellbeing, physical health and, ultimately, workplace productivity.
“[Better benefits utilization] is not just about good communication but also these foundational benefits that should be provided to workers,” he says. “You have to get people on good, secure footing with a good path—and that can snowball into much better wellness outcomes.”
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