One aspect of modernizing benefits is that one-size-fits-all no longer fits, says Michelle Khan, an associate vice-president, group benefits, at Gallagher.
One aspect of modernizing benefits is that one-size-fits-all no longer fits, says Michelle Khan, an associate vice-president, group benefits, at Gallagher.
Speaking at its’ Leadership Confidence Series’ session on ‘Modernizing your group benefits plans to support mental and physical wellbeing’ with Debra Hall, director of total rewards and HR operations at Ener care Inc., and Kimberly Sutherland, manager of client relations at Gallagher’s Calgary, AB, office, she said “we recognize that currently there are up to five generations now in the workforce and each one of these expects their group plans to be adaptable and flexible and to address their specific needs.
“Since multi generations respond to different ways of communication, employers really need to learn to collaborate with their employees to determine the preferences of these different people,” she said.
But this is just one aspect of modernizing benefits. In addition to looking at their demographics and their overall compensation, they need to keep their budget restrictions in mind while trying to address the needs of their employees.
One approach ‒ a holistically designed total rewards package can actually deliver a better employee experience while meeting their expectations across a wide range of interests. “This approach really allows employers to offer more options and yet still get a deeper understanding of their own employees,” she said.
This approach recognizes that the search for top talent is a struggle and requires more innovative approaches to pay and benefits. It changes how employees engage with their employers as employee-centered policies and practices are becoming essential to performance driven results. “You always have to keep that top of mind,” she said.
Hall said how benefits are approached depends on the environment. “Enercare has both union and non-union employees so you do have constraints. We have to be cognizant of these when we're looking at design overall.”
What it has been doing is looking at its employee engagement results and it’s finding a lot of the engagement results are around total rewards. “So what we're trying to do right now is look at the plan holistically” and ask questions about how it does support physical and mental health through our offerings, and the affordability of it as well. “We want to make sure that we're providing what our staff needs, but we also need to keep in mind the affordability, not just do it for the sake of doing it. There needs to be meaning behind what we're doing,” said Hall.
In discussions with clients, Sutherland said, “we always like to talk about modernizing to create a targeted benefits program that really matches their populations’ wants and needs.”
But she is also seeing an increased focus on reviewing the contract provisions that are typically based on the insurer standards and considering whether they are designed in a way that is meeting the specific needs of today. An example of an outdated coverage provision is not enhancing dental program to include items such as porcelain crowns or implants. “No one needs metal in their mouth,” she said. Another outdated clause is some contracts will only cover oral contraceptives. “It should be opened up to all types such as implants or intra uterine methods like diaphragms,” Sutherland.
A major focus in the past few years is around DEI (diversity, equity, and inclusion). Organizations which practice this are more inclusive of different ideas, cultures, and lifestyles. This ultimately leads to improved satisfaction of employees. “A recent survey that I read showed 60% of job candidates actually said that they declined a job at a company that didn't value workplace diversity,” she said.
