These days everyone wants your data; internet providers, car dealers even retail stores, but why do companies put so much value on your data and invest so much money into collecting information?
Businesses want to be informed of consumer buying patterns, the mechanisms behind decision-making, etc. to drive up profit margin. They also achieve the added economic efficiency of informed decisions.
The ultimate goal of analytics is to make “informed decisions.” HR managers must move away from relying on “gut instinct” and anecdotal suggestions and turn toward strategies supported by data insights. It’s imperative to understand why your organization’s healthcare costs are funded the way that they are, what is driving your claims to make sure you are offering benefits at a cost that is providing the best value to your employees. However, be cognizant of the vendor that masquerades data as “information” which can lead to false conclusions, confusion and data paralysis.
To begin understanding how to use analytics, it’s helpful to consider them from two perspectives; insightful data analysis and data regurgitation.
Insightful data analysis means converting data into actionable information; taking the complex and simplifying it in order to make more informed choices. Ultimately, not being caught up in the “noise” that is often created by data that is neither statistically significant nor helpful to your objective, otherwise known as data regurgitation.
Today, everyone is looking for the silver bullet to help manage healthcare spending in order to offer a comprehensive, robust benefits package to their employees. Taking a data and analytics-driven approach can have a considerable impact on reinventing the management of employee benefits without reducing benefits, as reducing benefits can have a very negative effect on employee engagement.
Leveraging the right information can lead to meaningful correlations and encourage action-based recommendations, particularly at a time when other departments are making business decisions based on data and analytics and rising healthcare costs. With the right analytic tools such as funding and benefits modelers, in-depth utilization reporting, predictive reporting and proven statistical applications, a skilled consultant can interpret and quantify data for employers to make informed decisions a competitive advantage.
OneDigital has a winning combination – unique analytic tools paired with strategic-minded consultants to contribute insightful recommendations around cost containment strategies, plan design and contributions. Reach out to your OneDigital Consultant to learn more.