Reimagining the Employee Benefit Experience

Reimagining the corporate approach to designing and implementing an employee benefit package has become pivotal in determining the prestige and growth of today’s business. By understanding the contemporary worker’s mindset and combining that knowledge with artificial intelligence based strategies, benefit planners can craft a more vibrant, targeted benefit experience that appeals more aptly to today’s workforce.

Exploring a Modern Approach to Employee Benefits

Most workers place an extremely high value on benefits and may not consider working at a company that presents a sub-par portfolio. With benefits prized so greatly, having the right package can make or break an employer’s efforts to attract and retain key talent, and as a result, impact the ability of the company to meet its business goals for productivity and success.

Business owners recognize this and as a result, pour a significant amount of money into their benefits budget. Unfortunately, many companies still approach benefits the way they did 20 or 30 years ago…operating, implementing, educating and asking members to engage with their benefit program like it was the 1990s. They’re stuck designing programs in a one-size-fits-all approach, without input from their workers and without embracing the technology available today. In short, for many companies, the employee benefit system is broken.

If business owners think about it, the way things were done 15 or 20 years ago is vastly different than the way things work today. Before the year 2000, companies utilized very few carriers and the benefit options available to employees were limited. Employee demographics were more homogeneous, and engagement was easy.

Today, a much more diverse employee population brings a wide range of needs and requirements to the table when it comes to benefits, requiring a multitude of vendors, forms, ID cards, communication methods, etc.

The delivery of employee benefits is evolving to meet the needs of both employees and employers and leveraging state-of-the-art technology to accomplish it. This is where artificial intelligence (AI) comes in. In just the past several years, it has become apparent that AI has provided the means for companies that have embraced the technology to become more efficient and successful at what they do. And in fact, many employers have been utilizing some form of AI for quite some time.

By making complex tasks simpler, including those connected to employee benefits, AI is poised to transform employee benefits. Companies utilizing AI in the design and implementation of their benefit programs can present their workers with the resources to make more informed decisions and in a speedier time frame, taking better advantage of the benefits available to them, all while improving engagement and increasing productivity.

In this paper, we’ll take a look at what this modern approach to the employee benefit experience looks like by presenting the capabilities and benefits of incorporating AI into design and implementation.

We’ll also examine the things both employers and employees are looking for in a benefit solution, why personalization is key, why decision guidance is a necessity and the roles that AI, mobile-enablement and data analytics play in delivering a positive experience for everyone. As a result, it is our hope that business leaders, benefit personnel, and consultants can understand the advantages of utilizing this emerging, effective approach to employee benefits.

Using AI-Enabled and Data-Driven Technology to Support a Better Approach to Employee Benefits

In today’s digital world, employers are adapting quickly to the ways in which artificial intelligence (AI) and other data-driven technologies can revolutionize their businesses, offering numerous opportunities to enhance their operations. One area where these advancements have the potential for profound impacts is in the design and implementation of employee benefits. By leveraging AI-enabled, data driven technologies, companies can utilize these tools to enhance their benefit offerings, personalize employee experiences, and foster a culture of well-being.

With scalable, adaptive and intuitive technology that has not only become more accessible and affordable, the number of companies incorporating AI into their human resource and benefit operations has increased rapidly over the past few years with no signs of slowing. This of course benefits both employees and employer, as a properly designed and executed employee benefit program can increase employee satisfaction, promote engagement and improve overall organizational success.

The potential methods for AI to accomplish these impactful results can involve the development of data-driven insights, predictive analytics, the personalization of benefits, customized well-being programs, and streamlined enrollment and administrative processes.

Let’s first examine these capabilities from the employer’s perspective.

The Hidden Risks in Using AI In Employee Benefits

While AI can offer numerous advantages in managing employee benefits, there are also hidden risks associated with its use. Employers should proceed cautiously in developing strategies that employ this powerful technology, keeping in mind some of the following potential areas of concern.

To mitigate these risks, it is important for organizations to implement a robust framework of oversight, ensure transparency, and be able to explain the AI system. Additionally, companies should regularly monitor and audit the algorithms for accuracy and provide channels for employee feedback and human support alongside AI-driven benefits management.

• Privacy Issues

  
  AI systems require access to vast quantities of data, including personal employee information. This raises concerns about data privacy and security. If not adequately protected, sensitive employee data could become vulnerable to breaches or misuse, leading to potential legal and reputational consequences.

• Bias and Discrimination

  
  AI algorithms are only as unbiased as those creating the programming and the data being used. Biases on behalf of the programming process may be perpetuated or amplified, leading to unfair outcomes in employee benefit issues. This could lead to unequal or misdirected treatment based on factors such as gender, race, age or financial status.

• Lack of Transparency

  
  AI algorithms can be complex, making it challenging to understand how they arrive at decisions. This lack of transparency can make it difficult for employees to comprehend why certain benefit decisions were made, potentially eroding trust and causing dissatisfaction.

• Limited Human Interaction

  
  While AI has the ability to automate processes and improve efficiency in many employee benefit and human resource processes, these advancements may come at the expense of human interaction among workers. Some employees may prefer human assistance, especially when dealing with complex or sensitive issues. Over reliance on AI without appropriate human oversight may lead to a decline in employee satisfaction and engagement.

• Inaccurate Predictions

  
  AI systems rely on historical data to make predictions about future outcomes. However, if the underlying assumptions or circumstances change, the AI’s predictions may become inaccurate. Relying solely on AI recommendations for employee benefits decisions could lead to suboptimal outcomes.

Addressing the Concerns of AI in Employee Benefits: Considerations and Safeguards

The rapid advancement of artificial intelligence has brought about numerous opportunities for organizations to enhance their employee benefit programs. Integrating AI into these programs can improve efficiency, personalization, and the overall employee experience. However, it is important that company leaders carefully consider several key factors for successful implementation.

Employer AI Strategies Shouldn’t Ignore Workers

Traditionally, technological innovation has been perceived to have negative impacts on workers and their positions within employer groups, resulting in job losses and a substantial rise in unemployment. Although AI has the potential to displace workers and erode job quality, this has not yet occurred. In fact, the opposite is often possible.

The adoption of AI could have the potential to create new jobs, complement existing job roles, increase worker productivity and wages, boost economic growth, and create a more comfortable worker lifestyle. Whether and how AI benefits or harms workers is up to the employer and how the company chooses to implement new policies and technologies.

The inclusion of AI in the workplace does not have to mean an elimination of jobs. Instead, employers can create AI policy in ways that complements employees. This can be done by an implementation or strengthening of job protections. By including employees in the development of new technology and assuring that corporate policies aren’t discriminatory or violate worker privacy, business owners can demonstrate their support of the workforce through enhanced job security and job quality.

Equally important when implementing or expanding the role of AI in the workplace is making sure workers are prepared for any expected changes. By investing in carefully planned educational programs focusing on upskilling, reskilling, and retraining, employers can establish a clear path for not just those whose roles may be immediately displaced as a result of AI, but also for those concerned about the elimination of their positions in the future.

Ensuring that those who may find their positions eliminated as a result of AI can find other work will go a long way to maintain stability in the workplace, keeping valued employees engaged and performing at peak productivity levels.