It's as if employers didn't have enough to do in running a business. They're being challenged in another task — that of managing employee benefits.
Related: I love my employer … and here's why
A Guardian Life Insurance Company of America study has found the additional duties of managing benefits costs, improving administrative efficiency and maintaining plan compliance, "all while trying to improve workforce health and productivity," is pushing employers far out of their comfort zones.
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With sixty percent of employers feeling overwhelmed with the increased complexity of managing their benefits programs, it's probably not surprising that larger firms (100 or more employees) are struggling the most (69 percent), the study found, especially with installing new coverages, changing carriers and trying to stay on top of employee communication and enrollment.
While employers' top priorities are controlling costs while still keeping benefits affordable for their workers, they're finding that traditional approaches just aren't coming up to the mark.
That's leading some employers to shift strategies. Less than a third of companies believe that employee cost sharing and high-deductible health plans (HDHPs) have been highly successful in achieving cost-cutting objectives.
More than a quarter of employers say compliance is their top benefits-related concern, but less than a third say their companies are well-prepared to address it.
And 70 percent believe their firms are unable to keep up with changes to federal, state or local laws, including the Affordable Care Act, paid parental leave laws, the Family and Medical Leave Act and the Americans with Disabilities Act. As a result, they're looking for more effective solutions to their benefits challenges.
New approaches being tried can focus more on the long-term results of benefits, with an increasing focus on employee physical and financial wellness.
Some key strategies include improving workplace well-being by offering stronger wellness and prevention programs, with resources for both mental and emotional health, then promoting them to employees. They're also improving benefits communication and employee financial education.
Outsourcing is becoming an important part of keeping up with requirements. Not only are they looking at bettering benefits administration efficiency, through a combination of outsourcing for specific benefits expertise and the use of technology to strengthen employee enrollment and electronic data interchange, but they're also turning to external advice and technology solutions to help them stay in compliance on their plans, by helping them stay current on ACA requirements as well as FMLA and ADA federal and state laws.
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