If you're not surveying your employees on their benefits this year, you're doing renewals wrong

Attention all employers who renew benefits on January 1: Consider this your wakeup call. Now's the time to get your ducks in a row, expect the unexpected, and brace yourself for uncharted territory.

Why? A whole lot has changed in the last year, from the economy to the workforce to the healthcare industry. But I probably don't have to tell you that; if anyone's felt these changes, it's HR.

At the risk of using a cliche, "these are unprecedented times" (trust me, after the last 2.5 years, I'm just as tired of that phrase as you are), but the proof is in the precedent — or the lack thereof. The events of the last year have thrown everything out of whack, leaving most HR folks with very little reliable historical data to base their benefits renewal strategy on.

Read more: Pressured by inflation, American workers need help during open enrollment 

So how do you get the data you need to ensure your benefits remain competitive? All you need to do is ask (your employees, that is).

I believe that an effective healthcare renewal strategy is incomplete without an employee survey, this year especially. Here are three big reasons why.

1. Since the last renewal season, millions of people have found new jobs.
Between January and July of 2022, an average of over 4 million Americans left their jobs each month. And while most of us may be sick of hearing about it, this Great Resignation is not over yet — one in five workers globally are still planning to jump ship for another job this year.

So I'm willing to bet that the majority of your employees fall into one of two categories:

• They're brand new to your organization. That means you won't have access to their prior utilization data. In other words, you may not be able to anticipate their benefits needs for the coming year.
• They saw all the turnover in the last year — and now they're thinking critically about what their employer can really offer them. Between watching their colleagues get great new jobs, fielding their own recruiter calls, and analyzing their total comp in light of inflation, they're really paying attention to every part of their compensation statement. And not for nothing, but 43% of folks who left their jobs in 2021 cite poor benefits as a reason for their departure. 

Read more: HR 101: 7 steps for onboarding in a virtual workplace 

If anything, 2022 has shown that employees stay where they feel appreciated and supported. And if you want to build a benefits plan that supports their unique needs while showing them that their input is valued, you'll need to give them opportunities to voice their opinions.

2. The economic downturn has fundamentally impacted the way employees are able to afford their healthcare.
Inflation has spiked. Housing costs are eating away at spending money. Most folks are tightening their purse strings.

And this all happened really fast. So it's understandable that the premiums your employees agreed to in their last open enrollment may no longer fit their budget. Some may have trouble affording out-of-pocket costs. Others may be delaying care to save some money in the short term (which can cost more in the long run, both for the individual and the employer).

Read more: Clinically integrated networks could improve healthcare quality and costs for employers

While prior utilization data can be a great indicator of how your employees use their healthcare, those numbers won't necessarily speak to the affordability of that care. And since cost is a key driver of how employers choose and use their healthcare, it should be a major consideration for this year's renewal season.

And as for those employers who are keeping a close eye on their budgets: experts are anticipating another year of high renewal increases, especially for small businesses. After last year's average increase of 9.6% among SMBs with 50-499 employees (compared to an average 5% increase for large employers with over 500 employees), it's time to get real strategic with your benefits. There's simply no room in the budget to throw money at benefits that don't effectively serve your employee population.

3. The pandemic kicked benefits innovation into hyperdrive — and employers have more options than ever.
Hundreds of new vendors have entered the space in the last three years alone. With innovative tools and fresh approaches at the ready, they're poised to shake up expectations around benefits — and this could end up changing the space for good. And to that I say: it's about time. Why?

Because with these new options comes greater opportunity for employers to better support employees' unique lifestyles and health needs.

Read more: Overtime pay and private insurance: Top 10 work perks employees want this year 

For instance, do your employees live in rural areas and need help finding providers? Try offering telehealth or healthcare navigation. Are your employees in the process of returning to the office after getting used to working from home? Lifestyle benefits could sweeten the pot. Do they consider their furry friends to be part of their family? Pet insurance could have a big impact.

The benefits space is leaving one-size-fits-all solutions in the rear view — and the more employee data you have, the better you're equipped to offer employees personalized support.

The last year has been transformational for millions of employees. And that could impact their relationship to their benefits. Your employees may simply have different needs now. And those changing needs may not be reflected in the usual utilization claims data analyses. You'll simply have to ask. Enter the employee survey.