Health, Equity and Affordability
Another area where data and analytics can play a role in optimizing spend is around health, equity and affordability. Health outcomes and costs differ depending on where employees live. These social determinants of health (SDOH) can affect a population’s health, ranging from access to primary care services and pharmacies to the availability of transportation and healthy food options.
With a few key data points from a company’s census, predictive analytics can be used to create insights related to SDOH, which can pinpoint the greatest health disparities leading to higher costs. This allows an employer to target preventative and other lower-cost solutions toward the portions of their workforce who need it the most. Doing so can not only help optimize healthcare spend, but it can also help organizations meet their DE&I goals (read more about DE&I trends in Aon’s 2022 Global DE&I Survey).
Refine and Integrate Your Wellbeing Strategy
Data has become a major factor in wellbeing strategies. We know that allocating funding to wellbeing programs, once seen as a perk, directly affects company performance. Improving your employees’ sustainable working life has the potential to increase company performance by between 11 and 55 percent, according to Aon’s 2022-2023 Global Wellbeing.
Connecting Wellbeing to Cost and Performance
Aon’s Wellbeing and Business Performance Dashboard allows companies to quantify their progress in five key areas of organizational resilience. The dashboard tracks from the organizational level down to the individual level. It tracks progress across key metrics and uses predictive analytics to show how those metrics will affect costs and performance. HR leaders can see at a glance the resilience of their organization and what can be done to improve it.
By using data to take an all-encompassing perspective on performance and wellbeing, companies can offer a richer colleague and client experience. They will also be able to design better ways for their workforces to bounce back, innovate and sustain themselves over time.
In practice this may mean committing to new ways of measuring wellbeing, such as the Human Sustainability Index, and educating and empowering people to make meaningful changes for themselves, their teams and ultimately their organizations.
As we saw during the pandemic, workforce resilience is key to how a company performs during times of volatility. The same is true during uncertain economic conditions, where resilience remains critical. Only about half of companies rate their employees’ resilience as “excellent” or “very good.”1 But that number is rising, in part because of the investment companies have made in wellbeing.
Using Data to Make Better Decisions
Having the right data and analytics won’t make difficult decisions for you — a big part of the process is knowing what and how much data to collect and analyze. But it will give leaders the confidence and clarity to make decisions and communicate them more clearly to others. Managing through difficult economic times means making better decisions. Having an advisor that can help separate the signal from the noise will make the data more useful, and lead companies to be better informed and better advised.