Canadian HR Reporter

CANADIAN HR REPORTER MAY 2018 FEATURES 25 BENEFITS Personalized health: Risk or opportunity? By Brian Lindenberg H ealth is inherently per- sonal. And yet, tradi- tional employer health benefits have taken the one-size- fits-all approach and are largely broad-based. While this worked well in the past, today's disruptive technol- ogy advancements have reshaped our outlook, making personaliza- tion an expectation. Parallel advances in medical science have also resulted in in- dividualized treatments that are safer and more effective. New dig- ital solutions are entering into the health space, which will increas- ingly define how employees access health care and take accountabil- ity for their own well-being. ese shifts have led to the in- evitable demand for customiza- tion of employee health benefits. Although this presents chal- lenges to plan sponsors, it also brings tremendous opportunities to revamp health benefit strate- gies. These include leveraging data, offering targeted interven- tions, and securing innovative partnerships that bring better health outcomes for employees and their dependants. What's behind the trend? There are a number of factors driving personalization in the world of health benefits. Shifting demographics: To- day, the workforce comprises five generations, where generation Y or the "me-first" generation is dominating and shaping corpo- rate culture. Layered onto this is an increasingly diverse cultural talent pool made up of groups with different needs and expecta- tions related to the employment deal — especially when it comes to health benefits. Gig economy: An increasing number of people are working independently, and more busi- nesses are relying on these ex- ternal resources or "supertemps." is change from traditional, full- time and permanent employment deals suggests a growing need for individualized benefit solutions in the market. Technological advances: Ev- eryone has seen how Netflix used technology advancements as an opportunity and, behold, the decline of cable television. e popularity of wearables is a great example of this, and the data they generate creates opportunities for personalization in health benefits. Scientific innovations: Ad- vancements in genetic testing and pharmacogenetics is one example of scientific innovations, while prescription drugs are increas- ingly being brought to market to treat highly selective diseases. is gives plan sponsors the abil- ity to deliver truly personalized health benefits for an increasing number of disease states. Age of the individual As we enter the "personalization of health-care" period — essen- tially, the age of the individual — how can an employer position its plans to deliver relevant value to employees? e key areas of data, wellness and innovation present opportunities for employers to start reshaping their health ben- efits strategy and moving towards offering individualized employee benefits solutions. is will attract the strongest talent, meet the expectations of the workforce, and achieve better health and business outcomes — eventually reducing the cost and risk of the plans. Harness the power of data: e need to analyze data will be- come more important for plan sponsors as they face increas- ingly expensive decisions around investing in the workforce. Al- though employers have access to their data, many don't know what to look for or how to use it to identify key drivers informing benefits strategy. The data available will, of course, depend on the benefits program that captures a variety of data sets. But this isn't the only source for useful data. Employers can also look at workforce demo- graphics and how they meet vari- ous eligibility criteria. Health and disability data, ab- sence and sick leave data, employ- ee engagement surveys and well- ness programs also help provide rich and meaningful information. is data provides a more com- plete story of what's going on at an organization and can even pro- vide a view into the future. Looking at what's driving up costs can help reposition an em- ployee benefits program. It can also be used in a predictive man- ner to isolate potential risk areas and where future spend might go. In thinking about predictive modelling, it's essentially using data to strategize benefits and create a completely personalized benefits package for each plan member based on factors such as demographic, lifestyle, how they use the program and personal risk factors. Focus on employee wellness: Mental health issues continue to dominate disability costs and health risks. Workplace health and wellness is quickly becoming a necessity for Canadian busi- nesses to mitigate costs associated with health, payroll, talent man- agement and loss of productivity. Increasingly, to be most effec- tive, the solution needs to be per- sonalized to the organization and ultimately the individual. Using data analytics will help identify areas in which to invest. They can manage costs by looking at a personalized and more effective total health man- agement strategy that can have a measurable impact on employ- ees, overall business, and invest- ments. There's an opportunity for targeted interventions that can modify behaviours and lead to better health outcomes — and better cost management. Partner for innovation: e vendor marketplace presents an interesting, albeit complex, arena. ese vendors offer products and services tailored to the in- dividual, and most are offering digital experiences. Now, em- ployers can partner to deliver innovative and unique experi- ences tailored to the needs of in- dividual employees. Navigating this market can be a challenge, but with the right approach, it can deliver rewards. is is apparent in health access, with solutions providing mobile access to personalized medical care, or sleep deprivation solu- tions offering online diagnosis and treatment. Such solutions can be expen- sive and employers will inevita- bly need to increase their spend to onboard and roll these out to employees. Cost, at the moment, seems to limit Canadian plan sponsors from embracing new vendor solutions, but the work- force of tomorrow will be upping the demand. Plan sponsors now have a chance to turn the demand for personalization into promising opportunities. ey should: • look at their data and the story it's telling • understand what the changing vendor marketplace has to offer • develop a strategic approach to health and wellness that leverages technology and innovation • move forward with a strong health benefits partner. As traditional health plans in- creasingly become irrelevant, it's important to embrace change and facilitate a more personal- ized approach to employee health benefits. is will bring associated ben- efits to the business, the brand and the bottom line — today and into the future. Brian Lindenberg is a senior partner at Mercer Canada in Calgary. For more information, visit www.mercer.ca. CAREpath is the only Canadian Health Care navigation program of its kind offered in Canada. We have extensive experience in navigating Canadians through the health care system. Cancer Assistance Seniors' Care Assistance HealthCare Assist Your Wellness Partner Compensation Surveys Incentive Programs Job Descriptions Job Evaluation Pay Equity Performance Appraisal Salary Administration Sales Compensation (416) 498-7800 info@resourcecorporation.com www.resourcecorporation.com COMPENSATION CONSULTING Credit: janews (Shutterstock) Looking at what's driving up costs can be used in a predictive manner to isolate potential risk areas.

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