Apple has just introduced its new iPhone5. And once again, it is expected to dominate the cell phone market and maintain a sizable lead over its nearest competitors. Much has been written about Apple’s success and the lessons learned can be applied in the employee benefits world.
Here’s a list of some factors that have led to the success of Apple.
- Continuous improvement and innovation. Although not unique to their business, Apple is about continuous improvement and making already successful products even better. They are also about taking the impossible and making it a reality.
- Relentless pursuit of perfection. Steve Jobs had a relentless drive for perfection. No detail was too small or insignificant. Everything had to be perfect—from the product itself, it’s packaging to the lighting on stage at product launches.
- Everything matters. The Apple experience extends across its online stores, its packaging, to the unique customer playground in its bricks-and-mortar stores. All the elements matter and all are aligned to the Apple brand.
- Built for the end user. Apple products resonate with consumers because they are user friendly and intuitive. There is very little need for users guides.
Applying the “Apple way”
So, how can the “Apple way” be applied to employee benefits? Although the design and delivery of a successful consumer product is different than that of a of an employee benefits program, the differences are not as significant as one would think.
Both are about generating value and improving the return on investment a plan sponsor makes in benefits program, and making the plan a positive contributor to the employment brand of the organization.
Continuous improvement and innovation
Unlike Apple, plan design has not evolved considerably in the last decade. We see incremental increases in plan flexibility, new approaches to cost management and innovation in program delivery. These developments are worthy to note however, in relative terms, very little has changed.
An inordinate number of plan sponsors have done very little to critically assess their programs to ensure they are getting the maximum return for their investment. As a minimum, plan sponsors should be regularly benchmarking their plans—not to stay even, but to get ahead of the curve.
Market innovation should also be a selection criterion when deciding on an insurance partner. Let the market help you get to where you need to be.
Relentless pursuit of perfection
Insurers and other vendors are often relied upon to deliver these programs. And in the delivery of these plan promises, mistakes often happen. It has been my experience that plan sponsors are amongst the most patient people on the planet—willing to tolerate error upon error in order to avoid disputing the current relationship. Plans sponsors need to be more stringent in this area.
I am not suggesting insurers or vendors be replaced if they make an error, but I am suggesting greater accountability for all aspects of the benefits commitment. Each error has an impact on value. Benefits plan sponsors should have agreements in place with their suppliers that specify both expected service levels and consequences for failure to meet these service standards.
Perfection may not be possible in the benefits delivery process, but all involved need to be held accountable to a high standard if maximum value is to be realized.
Everything matters
The best, most innovative benefits plan design can fail if the delivery is flawed. This includes how the program is communicated and ultimately understood by the end user (employees and their dependents). It also includes the delivery of program benefits—are payroll deductions correct? Are claims paid correctly? Do I need a user manual to figure out how to submit a claim?
Every aspect of the benefits plan promise needs to be considered and managed in order to ensure a maximum return on investment. Everything does matter.
Built for the end user
Despite a trend towards more flexibility and some pretty impressive improvements in the member experience in terms of the claims process, many benefits plans fail to deliver on the needs, wants and expectations of employees. The one-size-fits-all style of benefits plan is still the norm and plan sponsors are generally slow to leverage technology and consider product innovations.
A process of continuous improvement considers how employee preferences and needs change with the passage of time, and adapts accordingly. And this does not mean opening up the wallet and giving employees whatever they want. It means allocating whatever resources are available—financial and otherwise—to best align with the needs of the organization and employees, in order to deliver maximum value.
There have been many studies published in recent years—and the Apple experience supports this—that have found employees (the end user) are prepared to pay more to get what they want. Greater employee participation in sharing the cost of benefit s is often dismissed as a “non-starter” but should not be if greater value can be delivered as a result.
An employee benefits plan is a significant investment and the objective of every plan sponsor should be to maximize the return on this investment. These plans, the benefits they offer, how employees perceive them and how well they are delivered, can create—or destroy—significant value in the employment deal.
Pursue perfection. Keep your eye on the detail. Innovate by keeping the users at the centre of the experience.