Employer Adoption of DEV
RFP activity for Dependent Audits in the 3rd quarter of 2020 surged 20% compared to the three-year average of RFPs in the 3rd quarter for 2017-2019. Further, RFP activity for 2021 was 25% higher than our volume in 2019. Revenue was down for many employers, and the search to control costs without cutting more employees drove previously hesitant employers to evaluate and adopt a Dependent Audit project. Over 40% of RFPs DSI received in 2021 were for employers that had never conducted a Dependent Audit before.
Higher Response Rates
With many employees working from home, overall response rates for Dependent Audits increased to 98.8%, an all-time high for our book of business across all industries. How did this happen?
First, employees working from home are more likely than ever to see the mail before a spouse/partner throws any in the trash. Employees often fail to alert their partners that critical information for dependent verification arrives in the mail. Second, employees working from home have geographic proximity to the filing cabinet, box, or desk holding the necessary verification documents.
Simply being home has made it easier for employees to participate in their required verification.
Earlier Response Rates
Not only has working from home led to increased employee participation in Dependent Audits, but employees are also responding faster than ever.
Typically about 80% of employees will respond before the deadline, with the other 18-20% participating in the grace and chase period. However, with COVID driving employees to work from home, it’s become common to reach 90-95% participation before the deadline and 80% participation a week before the deadline. Employees working from home have easy access to their mail and required documents, and consequently, respond earlier in the collection period.
Summary
COVID has created widespread change in the benefits industry and the U.S., but the impact on Dependent Audits is generally favorable. More employers have opened up to dependent verification, and employees are responding earlier and in higher numbers than ever before.
Contact DSI and one of our verification experts will happily assist you if you want more information on Dependent Audits in general or best practices during the COVID era.
