Voluntary Benefits
Published by Mark Robb on June 30th, 2020
Having young children teaches you the importance of asking the right questions. You see, a toddler’s favorite word is “no”. So, an example of the wrong question to ask is: “Do you want to wear your blue shirt?” On that one, you’re probably going to get a firm “no”. But with just a slight change, let’s say: “Do you want to wear your blue shirt or your red shirt?”. Now you’re getting somewhere. They get to feel the autonomy they crave and “no” is not really an option. Bottomline: the right answers come from asking the right questions.
Now, having conversations with our employer clients about their benefits are a little more nuanced (and hopefully less stressful!). But, asking the right questions is still critical. Too often, I think the framework of questions that brokers ask employers or the questions they ask of themselves don’t set them up for the best possible outcomes. So, here are a couple ways to rethink some of the common questions I see and hear brokers and employers asking themselves.
When evaluating benefits…
The wrong question: How does this product compare to the competition?
Many brokers and employers evaluate products by “spreadsheeting”; comparing products side by side on their benefits. But, this isn’t always the most effective way to look at products because it assumes that all plans are designed the same and can be boiled down to a straight comparison of numbers. What about innovative products that don’t fit the mold? The spreadsheet starts to breakdown in that case. My colleague Shaun Urista wrote a great blog about this a while ago and I’m firmly in agreement.
The right question: How does this product compare to the needs of employees?
There are a number of factors to consider when looking at the product needs of employees. First and foremost, what does the medical plan look like? Where are there gaps and what coverage fits those gaps best? Also, how does the coverage compare to the treatments used today or the most common conditions experienced by the group? Rather than looking through the lens of comparing the competition, we need to be framing the conversation around the needs of employees.
When looking at cost...
The wrong question: How much will this cost employees?
There’s no doubt that cost does (and rightly so) factor into a purchasing decision. Brokers and employers should be looking at costs, but it’s dangerous to get too focused on the cost.
The right question: What is the value to employees?
Instead of cost, we should be looking at value. Value is the intersection of price and protection. For example, a life insurance policy with a $1 death benefit may be cost-friendly, but it doesn’t provide much value. On the flip side, a $10 million death benefit with premiums an employee can’t afford isn’t very valuable either. Those are, obviously, extremes, but we need to look for the right balance between price and protection.
When thinking about implementation...
The wrong question: What’s the easiest way to implement this case?
Benefits can be complicated. From enrollment, to managing payroll deductions to benefits administration systems there’s a lot to juggle. But, on the flip side, we shouldn’t let convenience stand in the way of what’s most effective. The key is finding partners to work with who can provide all the services you want and need while still making life easy.
The right question: What’s the best way to implement this case?
As I mentioned above, there’s a lot that can go into a successful case; from implementing a new ben admin system to a robust employee communication program to the launch of a new employer initiative. The easier path may be to let employees self-enroll or to use existing systems, but that’s not always what’s best. Again, it’s about finding partners who can make these more involved processes as easy as possible so that you’re doing what’s best for employers and employees.
The question that ties all of this together is: “how do I deliver successful benefit solutions for employers and employees?” And, a key part of the answer to that question is working with the right partners. That’s one of the reasons I’m proud and excited to have joined the Trustmark team. In the time that I’ve been here, I’ve seen that I get the chance to be a part of a company that’s dedicated to going the extra mile for its clients. I look forward to doing the same and, of course, trying to ask the right questions along the way.
Now, having conversations with our employer clients about their benefits are a little more nuanced (and hopefully less stressful!). But, asking the right questions is still critical. Too often, I think the framework of questions that brokers ask employers or the questions they ask of themselves don’t set them up for the best possible outcomes. So, here are a couple ways to rethink some of the common questions I see and hear brokers and employers asking themselves.
When evaluating benefits…
The wrong question: How does this product compare to the competition?
Many brokers and employers evaluate products by “spreadsheeting”; comparing products side by side on their benefits. But, this isn’t always the most effective way to look at products because it assumes that all plans are designed the same and can be boiled down to a straight comparison of numbers. What about innovative products that don’t fit the mold? The spreadsheet starts to breakdown in that case. My colleague Shaun Urista wrote a great blog about this a while ago and I’m firmly in agreement.
The right question: How does this product compare to the needs of employees?
There are a number of factors to consider when looking at the product needs of employees. First and foremost, what does the medical plan look like? Where are there gaps and what coverage fits those gaps best? Also, how does the coverage compare to the treatments used today or the most common conditions experienced by the group? Rather than looking through the lens of comparing the competition, we need to be framing the conversation around the needs of employees.
When looking at cost...
The wrong question: How much will this cost employees?
There’s no doubt that cost does (and rightly so) factor into a purchasing decision. Brokers and employers should be looking at costs, but it’s dangerous to get too focused on the cost.
The right question: What is the value to employees?
Instead of cost, we should be looking at value. Value is the intersection of price and protection. For example, a life insurance policy with a $1 death benefit may be cost-friendly, but it doesn’t provide much value. On the flip side, a $10 million death benefit with premiums an employee can’t afford isn’t very valuable either. Those are, obviously, extremes, but we need to look for the right balance between price and protection.
When thinking about implementation...
The wrong question: What’s the easiest way to implement this case?
Benefits can be complicated. From enrollment, to managing payroll deductions to benefits administration systems there’s a lot to juggle. But, on the flip side, we shouldn’t let convenience stand in the way of what’s most effective. The key is finding partners to work with who can provide all the services you want and need while still making life easy.
The right question: What’s the best way to implement this case?
As I mentioned above, there’s a lot that can go into a successful case; from implementing a new ben admin system to a robust employee communication program to the launch of a new employer initiative. The easier path may be to let employees self-enroll or to use existing systems, but that’s not always what’s best. Again, it’s about finding partners who can make these more involved processes as easy as possible so that you’re doing what’s best for employers and employees.
The question that ties all of this together is: “how do I deliver successful benefit solutions for employers and employees?” And, a key part of the answer to that question is working with the right partners. That’s one of the reasons I’m proud and excited to have joined the Trustmark team. In the time that I’ve been here, I’ve seen that I get the chance to be a part of a company that’s dedicated to going the extra mile for its clients. I look forward to doing the same and, of course, trying to ask the right questions along the way.
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Written by Mark Robb
Regional Sales Director, Southwest Region
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