Who would guess that the most important development in the employee benefits marketplace is the greater and more creative use of … semiconductors?

Change is accelerating in the benefits industry on a variety of fronts, including products, delivery platforms and measurement of outcomes, to name a few. But the biggest change agent by far is the tighter embrace of technology by brokers and advisors, employers and employees.

The underlying reason for the proliferation of silicon-coated computer chips among the mix of medical coverage and retirement savings is that employers and their employees are struggling to navigate the growth of voluntary benefits. Increasingly, employers are shifting from being benefits providers to benefits enablers.

It's no secret that employees have been funding their own retirements through 401(k)s and other retirement savings plans for decades.  They are also paying more for health care coverage, especially recently as more employers offer high-deductible medical plans. Now, they are trying to figure out what benefits to buy as coverages that were once paid by employers such as life and disability insurance, critical illness, accident and other coverages are instead offered on a voluntary basis.

Workers are struggling to make sense of this new benefits environment. Research by Massachusetts Mutual Life Insurance Co. (MassMutual) finds that 38 percent of American workers say they know little or nothing about their employer-provided benefits.¹ In addition, 40 percent say personal financial problems distract them at work.

And that's where technology is starting to make a difference. New tools are being introduced to enable workers to make better, more holistic decisions about their finances and benefits based on their personal needs and budget, reducing stress and boosting productivity. Improvements in technology are making the decision process easier and faster.

MassMutual is leading the revolution. Recently, the 165-year-old life insurer launched MapMyBenefits^SM, a patent-pending employee benefits guidance tool. Within minutes, MapMyBenefits helps workers make decisions about their benefits based on their personal financial situations and life stage priorities.

MapMyBenefits works much like the so-called “robo advisors” in the wealth management industry as the tool provides personalized guidance to help employees prioritize their health care, insurance and retirement benefits, and then make the most of each benefit dollar based on their life stage, financial goals and personal financial situation. This all-inclusive approach to financial planning at the workplace combines retirement readiness, health care coverage and preparation for life's unforeseen events.

The holistic benefits tool can be found on different benefits platforms as well as BeneClick!^SM, a unique, integrated exchange introduced by MassMutual. The new exchange, an online marketplace for people to select their employer-sponsored benefits, is powered by Maxwell Health's benefits technology platform. And BeneClick! is the first exchange to offer both health care, protection benefits such as life and disability, and retirement savings on a single platform.

To support these tools and make them more readily available, MassMutual has also introduced new mobile apps for both MapMyBenefits and BeneClick!

The MapMyBenefits app also helps workers prioritize their benefits, provides reminders to sign up for benefits, summarizes benefits coverage and stores personal financial information for ready access. The secure app is accessible only through a personal identification number (PIN) and connects workers to a wide range of information and guidance.

The BeneClick! mobile app helps participants answer the question, “Am I covered?” with the press of a button.  The BeneClick! app, which is accessible only through a personal identification number (PIN), allows access to a range of important benefits information, including existing benefits coverage, insurance identification and policy numbers. It also displays account information such as balances and rate of return information within 401(k) and other employer-provided defined contribution retirement savings plans, and wellness support services.

New technology is also being introduced to help employers ascertain whether their benefits are meeting their goals. MassMutual's Viability Advisory Group has developed a patent-pending analysis program to help companies evaluate the financial costs associated with employees being unprepared for retirement and the loss of productivity attributed to employees' lack of financial security. As part of the evaluation, the program calculates the hard-dollar cost of not maximizing employees' retirement savings and other benefits programs.

Employers are realizing that they must proactively help employees plan for their financial futures by making sure their retirement plans and employee benefits are as effective as possible. With Viability, MassMutual can demonstrate just what the impact is to the bottom line, and enable the perfect alignment between employer and employee needs.

These new tech tools are only the start. In the future, more employers will rely on technology to track employee benefits decisions, preferences and needs. Improved measurement and tracking will allow companies to gain insight into what benefits generate the biggest return on investment.

The end result will be more effective health and wellness outcomes for America's employers and employees. While it takes millions of semiconductors to attain that goal, no technology is necessary to appreciate it.

¹2015 MassMutual Employee Benefits Security Study, https://www.massmutual.com/~/media/files/MM-EE-Benefits-Security-Study-Report.pdf

© 2016 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.

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