The Business Case for Life Insurance and Wellbeing
Getting senior management to understand the benefits of life insurance and wellbeing has never been easier.
Yugi the Giraffe - 2 August 2019
As an HR professional, you know that employee benefits are important. You’ve been to all the conferences, seen all the studies, and heard your employees asking for more perks.
Of course, if you had an unlimited budget you’d get everything your employees wanted, but for now, you have to pick and choose, and explain to your superiors why you’ve made that choice.
Writing up this business case is not as easy as it may sound. Not only do you need to prove that there’s a data-backed advantage in getting this benefit, but you also need to prove there’s a reason to get it for your team specifically.
We’ve gathered some ideas for how to research and present the business case for life insurance and wellbeing at your workplace, so that you can hopefully get happier, healthier and more productive employees as soon as possible!
1. Identify and lay out the problem
Every business is different, and the issues that may be a priority for yours might not be for another. Both life insurance and wellbeing benefits have an abundance of positive effects, so it would be good for managers to know what exactly it is that you’re solving using them.
Is the problem your company is facing attracting and retaining talent? Is it high sickness absence costs? Or perhaps the issue is an office culture that needs a rejig with a new oomph factor?
Whatever the obstacle may be, explain it, lay out the details, but also show what you’re doing to solve it right now and how it’s working. Maybe you have a life insurance policy in place, but your employees are looking at your competitors that have a wide range of wellbeing perks? Or maybe one of your company’s selling points is its young, cool culture which you want to maintain with a regular update of your benefits?
By making sure your managers fully understand the issue, they’ll be more keen to help you solve it using the plan you’ve come up with. Then you can present your plan for rectifying the situation, and explain how you’re going to measure and define success.
2. Present success stories and case studies
There’s nothing like hearing first-hand recommendations. Getting your managers to talk to their friends and colleagues who have experienced the perks you’re planning to buy, or showing them case studies and testimonials from similar-minded companies, can be a great way to showcase how this particular perk can help relieve the issue you’re trying to solve.
Try to have some case studies ready in your arsenal, especially if they’re from companies in the same field as you or with similar aspirations - these are more likely to convince even the most cynical of your managers.
3. Prove ROI through data
Employee benefits are usually a more difficult sell because they’re seemingly not essential parts of the business. To some managers, they can sound like another cost that doesn’t tick the main box any business expense needs to tick: return on investment.
As an HR professional, you know this couldn’t be further away from the truth: in this day and age, employee benefits are not only nice to have - they should be a top priority for any business that cares for its people.
Benefits create a nicer environment for employees, but they’re also something they’re definitely looking for when they look for a job - and when they decide whether to stay in their current one or not. In fact, 56% of employees said employee benefits are very or moderately important for them when they evaluate a job, whilst 53% said they will always choose an employer which positively contributed to their wellbeing, even if it meant earning less money.
That’s true for all employee benefits, and that’s why it’s so important for companies today to constantly update their benefits portfolio. But the specific bonus that comes with wellbeing benefits is gaining healthier, happier and more productive employees, which will in turn save your company some of the costs incurred from sickness absence. When the average London firm of 250 employees loses around £250,000 a year on sickness, the savings can be huge.
In order to maximise the positive effects of wellbeing benefits, ensuring that your benefits are part of a holistic approach to wellbeing is key. This means making sure that all aspects of wellbeing - mental, physical, social and financial - are being represented in your scheme.
That’s why life insurance can be so valuable - it provides the financial peace of mind a lot of your employees may need that goes beyond just their salary. With a life insurance policy provided by their employer, they know their loved ones would be protected if the worst happened, together with the perk of not having to experience the anxiety that’s usually connected to purchasing insurance products for themselves.
In our recent study, we’ve seen that although 96% of people said work is important to their financial wellbeing, only 70% agreed that their current role has a positive impact on their financial wellbeing. This means there’s a 26% financial wellbeing gap between the expectations of employees and what they’re actually getting, which life insurance can be the first step in solving.
A combination of all pillars of wellbeing will also make it more likely for all of your employees to find something they’ll find significant - no matter what their age, marital status or interests are, raising levels of engagement.
4. Relieve any worry by being creative
After presenting a detailed ROI plan, it’s unlikely your managers will not see the rationale in getting life insurance and wellbeing perks. But if they’re still not sold, you can always try and find benefits that will be more flexible or allow your management team to have all their questions answered in compelling ways.
One idea is to introduce the perk to senior staff first. Senior staff are more likely to purchase a benefit for their team if they needed it in their personal life, so by giving your managers a sneak peak into the benefit your planning to buy for the team, they can see the impact it can have for themselves, and make a decision based on their own experience.
Even better, you can roll out a pilot for the entire firm or a small focus group, depending on your budget and how willing the perk of your choice is to work with you. A lot of benefit schemes provide a free trial, so you can test out levels of engagement and also ask your staff if they enjoyed using the benefit. It’s always better to show your managers that your people are using it, and not only stats and figures.
When it comes to life insurance, it’s obviously a little more complicated than that. However, you can always survey your staff on what kind of financial benefits they’re looking for, or ask them specifically about life insurance. When your managers see the demand, spending the money on these employee benefits won’t seem as intimidating.
5. Talk cost
It’s more likely than not that the perk you want to buy sounds more expensive than it actually is. For example, people in the UK were found to overestimate the price of life insurance by nearly 400% - that’s like thinking a Netflix subscription costs £36 per month!
By doing the research and being upfront about the costs life insurance and wellbeing benefits will incur, you’ll probably relieve some of your manager’s concerns. It’s also worthwhile to take a look at engagement rates and compare them to the price, because it makes no sense to pay for a product your team is not going to enjoy using.
You can also try and find a package that works for your team, which can reduce the price of benefits massively. We believe that yulife is great for this: as well as a trusted death in service policy that’s insured by AIG, one of the largest insurance companies in the world, your employees will also receive the yulife app. The app allows your team to earn yucoin, the currency of wellbeing, by taking part in simple healthy activities such as walking or meditating. Their yucoin can then be exchanged for air miles and gift cards from brands like ASOS and Amazon.
Instead of paying for life insurance and wellbeing benefits separately, yulife provides both - plus rewards - for the same price that an equivalent group life insurance policy would be. So, by saving money, the ROI you so eloquently presented will be even higher, making the purchase a no brainer for you or your manager.
Interested in more articles and insights about life insurance and employee benefits? Book a demo with one of our experts to learn more about yulife.
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Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.