Only 10 per cent of companies use data modelling to show employees the value of their benefits packages, according to recent research by Buck, a Gallagher company.
According to the report, employers need to take immediate action to address recruiting and retention since the skills gap is growing and talent competition is rising.
It found that even with significant data, most lack the analytical capabilities needed to match short-term gains to long-term objectives. Around 73 per cent of businesses anticipate that benefits plans would be impacted as cost pressures increase, up from 52 per cent in 2022.
Using data can reduce growing expenses and increase the value of benefits. But most firms don’t take advantage of the data that is accessible, which makes cost modelling and employee engagement surveys more difficult.
Setting analytics tool installation as a top priority is essential; at the moment, only 5 per cent of platforms have advanced analytics, despite the fact that 91 per cent of respondents see its value and intend to expand investment.
Buck head of employee benefits John Deacon says: “Although employers are eager to optimise service across their employee benefits platforms, there remains a gap between what they would like to implement and what they have in reality. Many employers agree that enhanced analytics and a single sign-in portal would unlock huge advantages, but far fewer have these vital technical measures in place.
“Employers not only require a cutting-edge technological solution to generate data-driven insights from their benefits platforms, but a formalised strategy for maximising the value of their data and streamlining the user experience. As the research shows, many employers have long wish lists, but not enough have a plan to realise these aspirations.
“Platforms with advanced analytics can give employers the insights needed to support their business and HR objectives, so business leaders need to think beyond the ‘what’ of technology and also consider the ‘how’ of delivery, usage, and implementation.”
