Australia
About the company:
- Industry: Automotive Manufacturing
- Employees: 177,000
- Headquarters: United States
A trailblazer in the Automotive Manufacturing sector was in search of a way to optimize their investment in existing health benefits. Despite the company’s substantial success, their employees lacked awareness of the ways they could save on healthcare expenses and were not taking advantage of the Health Savings Account (HSA) benefit. By partnering with Alight and leveraging Alight LumenAI personalization tools, this client increased employee participation and contributions to their HSA. Targeted, custom messaging helped them realize a significant average increase of $1,322 in HSA contributions per participating employee, and $0.75 million in savings in employer Federal Insurance Contributions Act (FICA) taxes.
Key takeaways:
- By helping employees engage in health benefits and addressing the critical challenge of Savings Accounts (HSAs) awareness, companies can demonstrate a commitment to financial wellness in the workplace.
- Precision personalization solutions, centered around targeted outreach, display nuanced understanding of diverse employee needs and preferences.
- Employers can lower their Federal Insurance Contributions Act (FICA) taxes by increasing employee participation in health savings benefits.
Encouraging people to contribute, or contribute more
For one automotive manufacturing company, a challenge emerged around employee financial literacy, as employees lacked awareness of the Health Savings Account (HSA). Despite the potential to save pre-tax dollars for medical expenses and lower healthcare costs, participation and contribution to the HSA remained low. The company was in search of a way to optimize their investment in the HSA benefit and drive better business outcomes from happier, more financially secure employees.
Triple-tax-advantaged health savings accounts see increased participation and contributions
To address this challenge, the company partnered with Alight to implement a solution centered around hyper-personalization and targeted outreach. Leveraging push messaging based on AI-driven criteria, a new campaign was developed to encourage participation and contribution to the HSA. The two groups of targeted employees to receive the custom messaging included those who hadn't yet contributed to the HSA, and those who contributed but were not readily increasing their contributions.
In establishing a collaborative partnership with the client, Alight orchestrated a series of strategic initiatives. These were designed to seamlessly integrate and implement the AI-driven messaging program (powered by Alight LumenAI). The key steps in this process included:
- Assessment: Alight's initial step involved conducting a comprehensive needs assessment. Delving into the intricacies of the client's specific challenges and goals, this phase aimed to establish a thorough understanding of the unique context surrounding the lack of awareness and knowledge regarding Health Savings Accounts (HSAs) among employees.
- Data analysis: Extensive scrutiny of existing data followed, encompassing employee participation rates, savings patterns and financial behaviors. This detailed analysis served as the foundation for shaping the AI-driven personalization strategy, addressing the challenge of underutilized HSAs and fostering a culture of proactive healthcare savings.
- Integration planning: Alight fostered close collaboration with the client to craft an integration plan. Meticulously identifying optimal areas for the implementation of personalized content within existing communication channels, this step aimed to enhance engagement and drive participation in HSA programs.
- Customization framework: A content personalization framework was established that accounted for the distinctive characteristics of the automotive manufacturing workforce. This framework aligned with desired outcomes, ensuring tailored engagement strategies for addressing the awareness gap around the HSA.
- Pilot programs: Small-scale pilot programs were strategically initiated, providing a testing ground for the effectiveness of the AI-driven approach. This iterative phase allowed for nimble adjustments and refinements before advancing to full-scale implementation. It ensured that the tailored outreach strategies resonated effectively with the target groups.
- Continuous monitoring: To ensure the ongoing adaptability and success of the AI-driven program, the Alight team implemented mechanisms for continuous monitoring and feedback. This real-time approach facilitated adjustments based on evolving needs, ensuring that the program stayed responsive and effective over time.
Guided by Alight LumenAI’s adaptive "Always On" personalization messaging system, email and web messages were crafted to dynamically adjust over time to employees' savings behaviors and address the challenge of underutilized HSAs. Completed in less than six months, the success of the project was gauged by a substantial increase in employee contributions to both 401(k) and HSA accounts.
Outcomes:
- Savings in employer FICA taxes: Achieved a substantial $0.75 million in savings in employer Federal Insurance Contributions Act (FICA) taxes.
- Increase in HSA contribution per participating employee: Realized a significant average increase of $1,322 in HSA contributions per participating employee.
- Conversion of targeted personalized messaging: Demonstrated an impressive 36% conversion rate of targeted personalized messaging.
Personalized offers to eligible employees: Successfully delivered personalized offers to 96% of eligible employees across various channels, motivating them to start saving in their HSAs.
Start the transformation
Transform employee experience and drive powerful business outcomes with Alight LumenAI. This innovative solution personalizes communication and content strategies while providing businesses the tools to better understand and engage the workforce. Harness the potential of customized engagement, adaptive program adjustments, and strategic optimization of tax-advantaged accounts.
