Responding to the complexity and uncertainty of COVID-19 is pushing many organisations to the limit. Even with resources and budget in short supply, healthcare leaders have a simple solution at their fingertips – one that can help unlock unrealised financial outcomes in these challenging times.
Evolving at speed to meet changes in the operating environment has long been the norm for healthcare. The COVID-19 pandemic has taken this dynamic, responsive approach to a whole new level, with senior leaders stepping up to new responsibilities to patients, policy makers and employees.
With their capacity to rise to new challenges already stretched, many health organisations are looking for innovative ways to identify and access unrealised financial outcomes, for their workforce and their organisation. The good news is healthcare leaders already have the magic wand they need to ease at least some of the pressures.
Shining a spotlight on the unsung hero of financial wellbeing
Until now, a salary packaging program might have been seen as a run-of-the-mill feature of an organisation’s employee value proposition (EVP). But those all-important tax dollars saved by each employee could be doing a lot for their households just now, particularly if they’re dealing with redundancies and reduced income. For organisations, the pay-off is a lift in their employees’ disposable income.
What drives program participation
Thanks to the wide menu of options available for salary packaging compared with other sectors, public healthcare organisations generally experience much higher adoption of employee benefits compared with other industries. However, there is marked inconsistency in employee benefits program participation rates across the public healthcare sector with some organsiations reporting as low as 50% and as high as 92%.
As one of Australia’s biggest providers of employee benefits programs, Maxxia captures benchmark data on how incumbent programs for healthcare organisations measure up against industry norms. As we regularly undertake benefits assessments on behalf of new and existing customers, we develop benchmarks on industry best-practice for employee benefits program design and communication. By comparing their range of benefits and engagement approach with some of the highest performing programs in the sector, healthcare organisations can get a clear picture of whether their own participation is all it could be.
“Since transitioning to Maxxia we’ve gone from having a 68% uptake to over 85% uptake,” says Suellen Bruce, Executive Director People, Culture & Communications, Western Health.
“When we went to tender to look at a new partnership, a few aspects of Maxxia’s offering stood out: their communication style, personalised service, easy-to-use technology and their novated leasing program; all these factors made it easy for our people to maximise their salary packaging benefits.”
Maximising unrealised financial value
Not only does a Maxxia benefits assessment offer this benchmark comparison, it also puts a dollar value against participation gaps. With our sector-specific technical expertise in employee benefits, we can provide comprehensive reporting, including robust data on the unrealised financial value that comes from a best-in-class program and a boost in uptake of employee benefits.
By enhancing their employee benefits program strategy and delivery, Maxxia clients in the public healthcare sector have experienced significant improvements in both participation and overall return. On average, organisations have seen a 15% lift in participation across their workforce in multiple benefit categories. Increased participation can also have a significant upside for the organisation through a range of beneficial incentives based on program performance.
Ms Bruce says this can be hugely advantageous to healthcare and other public service organisations, “where you can’t just put salaries up or implement expensive rewards programs”.
“There’s a difference between working for a corporate organisation and a public health service, and a good employee benefits program rewards people who are committed to what they do every day in providing good care to our patients,” she says.
Taking a holistic, value-driven approach to employee benefits program design and implementation has delivered significant monetary benefit to Maxxia clients. At a time when leaders are challenged to deal with the unexpected on a daily basis, such an opportunity to boost investment in their current capacity and future resilience can be hard to turn down.
Click here to learn how Western Health have transformed their employee benefits program to deliver greater unrealised financial value.
