Leveraging Tech Credits: How to Fund a Better Benefits Experience
by Nayya Marketing June 5, 2023
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What’s keeping your company from implementing a robust benefits administration platform? If the answer is cost, you’re not alone. In most cases, cost is the number one factor keeping many organizations from upgrading their benefits administration platforms, informally known as “ben admins.”
Many employers are unaware that tech credits and long-term savings can offset the cost issue. But what exactly are tech credits, and how do they work? More importantly, how can they lead to an improved employee benefits experience?
Let’s dive right in!
What are Tech Credits?
Tech credits are a form of carrier subsidies meant to partially or fully offset the costs of implementing a benefits-related technology such as benefits administration or benefits decision support platforms.
Carrier subsidies are offered in two forms, one being a percentage of the premium and the other being a flat dollar amount, both intended to be allocated to the employer's enrollment technology.
These subsidies help establish a system that improves the employee and employer experience while creating a long-term partnership between the employer and the vendor.
Every technology upgrade is an investment involving installation, service fees, and the cost of training the employees. By improving the benefits enrollment and utilization experience, streamlining billing and other services, and enhancing data transfers between the carrier and employer, a technology subsidy is a win-win situation for all — the carrier, the broker, the employer and the employee.
The Benefits of Tech Credits
Offsetting the costs of implementing a benefits administration platform can help organizations in a number of ways.
Benefits to Employers
Companies understand that great benefits help attract and retain top talent. But with millennials and Gen Zers making up the majority of today’s workforce, presenting said benefits in a tech-savvy way is a must.
Why? Because they expect online convenience, on-demand services, and access to information on the go, leaving organizations challenged to deliver intuitive and user-friendly benefits experiences.
By reducing the cost of the technology, employers are presented with a fiscally sound opportunity to implement these systems, turning these expectations into reality. And in turn, your workforce will see that you’re continually investing in them, leading to higher employee satisfaction and boosted retention rates.
Benefits to Employees
Benefits are crucial to establishing your employees’ financial and physical wellness. You can equip them with a comprehensive process through technologies like benefits experience platforms that provide:
- Benefits awareness: Increased visibility of your benefits portfolio so your employees are informed of the breadth and depth of what you’re offering them
- Benefits education: Enables your workforce to understand their benefits and the value of each of them so they can confidently select what will best support their families’ benefit needs all-year round
- Benefits allocation: Empowers your employees to appropriately utilize their benefits based on their individual/family needs for coverage and security
In a Nutshell
Investing in a robust benefits experience helps employers streamline processes, increase their benefits ROI, reduce HR admin burden and improve employee benefits experience during Open Enrollment or qualifying life events. It also increases employee’s awareness and education of their offered benefits to help them select what’s best for their needs.
But the time and heavy fiscal investment deter many organizations from upgrading their benefits experience that would produce these results. By leveraging carrier subsidies in the form of tech credits, you can implement a top-of-the-line benefits solution like Nayya, at a fraction of the price.
If you’re unsure about your organization’s eligibility to receive tech credits, reach out to your insurance carrier or broker. And if you’re ready to see how implementing a benefits solution that drives cost savings for employers and employees — get in touch with us today.
Nayya is a benefits experience platform that provides personalized decision support and guidance for employees based on their mental, physical, and financial needs. Powered by millions of data points and an AI engine, our solution delivers decision support and guidance during new employee onboarding, open enrollment, qualifying life events, and in the moments that matter all year round.
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