HR tech leader’s fourth annual report analyzing recommendation engine data shows persistent lack of knowledge about benefits continues to affect financial readiness
WEST OF THE MONKS, Iowa, March 22, 2022 /PRNewswire/ — Businessolver®, a leader in Saas-based benefits technology and services, today released a comprehensive report showing the broad effects of financial literacy and risk tolerance on decision-making. employee benefits, particularly a lack of understanding of how their lifestyle and financial readiness affect their benefit choices.
Now in its fourth year, the MyChoice® Recommendation Engine Benefits Insights report annually reviews employee understanding, confidence, financial readiness and risk tolerance when making benefits enrollment decisions. Comprised of proprietary data from the MyChoice recommendation enginethe Businessolver decision support tool integrated into its Benefitsolver® platform, the 2022 report takes a multi-year perspective (Fall 2019 to Fall 2021) to analyze and benchmark employee mindsets around benefits choices.
“Our data shows year over year that significant knowledge gaps prevent employees from understanding how to choose the right benefits or use what is already available to them,” said Sherri Bockhorst, Director of Innovation and Strategy at Businesssolver. “Employees make benefits choices regardless of their lifestyle, finances and health needs, indicating a clear need for personalized benefits information and just-in-time communication aligned on lifestyle milestones Year-round benefits engagement strategies can fill these knowledge gaps and reshape benefits from a one-time annual event to a personalized benefits experience aligned with unique employee situations, leading to better results across the board.”
The confusion of advantages remains universal; lack of financial preparation and lifestyle management play a role.
Businessolver’s 2022 data shows employees remain puzzled about their benefits, holding steady over the four-year history of the Benefits Insights report. A correlation between lifestyle and financial readiness shows that benefits literacy is closely tied to how well employees understand their health and finances. According to 2022 data:
- A third (31%) of employees are confused by their benefits, consistent with data from previous years.
- More than half (60%) of employees describe themselves as being in good health and more than a third (35%) say they are in “fair health”. Yet 60% say they take two or more prescription drugs.
- Almost half (44%) would feel “freaked out” about a $6,000 emergency room costs.
- Just over half (55%) say they only save “sometimes” for emergency expenses; 12% savings “never”.
Financial readiness remains poor, although data is starting to pick up.
There is a lag for employees when it comes to how financial readiness plays into benefits decision-making. Data from Businessolver shows a slight increase in financial preparedness, although the majority of employees are either unprepared or unwilling to incur large healthcare expenses.
- When asked if a rainy day fund would cover a large urgent care bill, 34% said they were unprepared; 33% have savings but not enough to cover the entire bill.
- More than half (55%) say they “sometimes” spend more than they earn.
- Almost half (45%) could cover a $6,000 emergency room bill, but would prefer not to.
- Preparedness for unexpected bills (12%) increased by two points compared to 2020, but these users remain in the minority.
Leveraging year-round engagement strategies is key to engaging employees and improving literacy.
Data from Businessolver shows a clear lack of preparation and understanding among employees regarding their benefits. Employers should consider year-round benefits strategies that highlight underutilized benefits and resources that often help offset financial stress and improve overall well-being.
Aligning engagement strategies throughout the year to address employee knowledge gaps by directing them to available benefits can help improve literacy and positively impact results as they go. need it.
Visit businessolver.com to find out MyChoice Recommendation Engine Benefits Analysis Report 2022as well as related special content and an interactive dashboard that filters data by various demographic metrics.
Since 1998, Businessolver has delivered market-changing benefits technology and services, backed by an inherent responsiveness to customer needs. The company creates customer programs that maximize investment in benefits programs, minimize exposure to risk, and engage employees with easy-to-use solutions and communication tools to help them make benefit selections sensible and profitable social. Founded by HR professionals, Businessolver’s unwavering service-oriented culture and secure SaaS platform delivers measurable success in its mission to fully satisfy its customers.
Stoker GrantEdelman (on behalf of Businessolver)