Case Study: OSI Systems

Transforming HDHP Communications & Saving $450K

Think Globally, Act Locally

OSI Systems is a leading designer and manufacturer of specialized electronic systems and components for homeland security, defense, healthcare, and aerospace. With 6,000 global employees in four continents, OSI Systems was challenged to make communications engaging and consistent for a multi-generational and remote workforce. Continued healthcare cost increases and reform drove the need for clear communications and effective change management strategies.

Rick Merritt, the Chief HR Officer at OSI Systems, saw the challenges as an opportunity to transform employee engagement. He developed a HR philosophy and focused his team on three strategic priorities: adopting modern technology to transform engagement and communications strategy, creating a compelling employee value proposition through global talent management strategy, and globalizing HR systems. Rick also created and promoted a strong HR brand that established their mission statement.

Connecting Employees to the Value Proposition

When it came to getting the message to employees, meetings with slideshow presentations were the norm. However, the company needed an effective communications strategy to introduce High Deductible Health Plan (HDHP) for the first time to employees during Open Enrollment (OE) in 2014. OSI Systems partnered with GuideSpark to drive employee adoption and engagement with a workforce communications solution that includes customized benefits, onboarding, and compensation video content, marketing resources and tools, and analytics to measure success.

Employees received benefits information through multiple channels: flyers, posters, and video content that was played in HR meetings, looped on cafeteria TVs, and available on-demand to decision makers at home via mobile. HDHP adoption significantly exceeded expectations and as a result, the company decided to go full HDHP replacement during Open Enrollment in 2015.

Delivering Significant Business Results

OSI Systems shifted to an active enrollment and maintained Health Savings Account funding to ensure that employees felt the company was covering their deductibles. Empowered with effective communications strategies, OSI Systems achieved over 90% HDHP adoption, reduced annual healthcare cost increase to less than 1% (well below the national average of 5%), and saved $450,000 in the U.S.

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