Validating Productivity Claims in Employee Benefit Solutions 

By Steve Herman | July 2024 

Many employee benefits solutions promise to boost productivity, reduce absenteeism, and positively impact an employer’s bottom line. However, there is often a gap between these claims and measurable outcomes, which can limit solutions ability to make a compelling ROI case to brokers and employers. Numerous factors influence things like productivity and absenteeism, making it difficult to isolate the impact of a single benefit solution.   

So how can solutions effectively demonstrate the benefits that that they can bring to an organization? Based on our work with point-solutions, here are five strategies to consider:   

1. Define clear objectives: Set specific objectives for what your solution aims to achieve with your client (e.g., a 10% reduction in absenteeism, a 15% increase in employee engagement).  Use this to establish a set of baseline measurements to provide a reference point for evaluating impact.
2. Utilize robust data collection methods: Brokers and employers understand that information can never be too comprehensive.  Collect data from various sources, including employee surveys, health metrics, and productivity software.  Access third-party data sources to weave broader statistical models into your methodology. Use regular monitoring and reporting to track changes over time. This will help you to take credit for the positive changes you are seeing by not missing unexpected benefits as well as allow you to adjust strategies as needed. 
3. Apply advanced analytics: Incorporate predictive analytics to forecast your benefit’s potential impact on productivity and absenteeism.  Combined with integrating data from different systems, you will develop a more a holistic view of various factors’ interconnectivity.
4. Leverage case studies and pilot programs: Analyze case studies that have successfully validated productivity claims and see what commonalities in the data you can leverage from your solution to further validate your outcomes.  As a way to build trust, give organizations the opportunity to experience your offering’s value first-hand: pilot programs that test the solution on a smaller scale before a full rollout provide an amazing opportunity to gather initial data and insights.
5. Engage employees and stakeholders: Gather feedback regularly from end users to understand their experiences with the benefit solution.  Obtaining feedback directly from the end users will highlight the offering’s value to the client. Remember to engage other key stakeholders within an organization in the validation process to ensure alignment and buy-in.

Once you have your success strategy, there are three data-driven validation techniques you can use to help you connect the dots. 

1. Correlation and causation analysis: Use statistical methods to determine the correlation between your solution and productivity metrics. These insights will help validate your offerings and support your claims.  
2. Return on investment (ROI) calculations: Help your prospects and customers conduct a cost-benefit analysis to quantify the financial impact of the solution.   
3. Comparative studies: In a situation where you can implement a pilot program, experiment with control groups to compare outcomes between employees who participate in the benefit program and those who do not.  Benchmark these results against industry standards and best practices to contextualize outcomes for your clients.

Connecting the dots between benefit solutions and productivity improvements requires a data-driven approach and a commitment to continuous evaluation. By defining clear objectives, utilizing robust data collection methods, applying advanced analytics, leveraging case studies, and engaging stakeholders, organizations can validate their claims and demonstrate the true value of their benefit solutions. 

Contact us to learn how our data-driven methodologies can help you connect the dots and achieve measurable results. 

Steve Herman is the Executive in Residence at Archetype.  Steve brings 20 years of sales and management experience in the HR technology space.  In his last role as Chief Sales Officer at Web Benefits Design, he built and managed a national sales force while overseeing all new revenue generating opportunities.  In addition, he also sourced and supported all strategic partnerships.  In 2019, he successfully navigated a transaction where the business was acquired by an insurance carrier as part of a strategic investment – an $80 million deal from what had been a bootstrapped company.

This article was produced by Archetype.