Design is not just what it looks like and feels like. Design is how it works. - Steve Jobs
It’s doubtful that Steve Jobs was thinking about employee benefit programs when he made this statement. Yet, it’s as applicable to employee benefits as it is to technology. Good design is critical to achieving good outcomes.
A useful framework for benefit designs that produce good outcomes consists of the four B’s:
The tendency of many companies is to first and foremost look at budget. However, that is the one objective that is probably easiest to achieve (note that easy does not necessarily translate into pleasant). Companies can change employee contributions, retirement plan match rates or benefit levels to achieve their budget goal. Read more