HRTech Interview with Jon Shanahan, CEO of Businessolver

Jon, we’re delighted to have you at HRTech Cube. Could you please share a bit about your professional journey and how it led you to your current role as CEO of Businessolver?
When I was serving as Vice President of Consulting Services at Holmes Murphy & Associates in Des Moines, Iowa, I crossed paths with Sean McMurray, who would become my co-founder at Businessolver on the tech side. We initially set out to tackle the myriad issues within the insurance industry, but quickly realized that approach was too broad. So, we zeroed in on employee benefits administration because we saw how heavily it relied on manual processes and paperwork. With technology—and the nascent internet of 1998—we recognized a prime opportunity to empower employees while alleviating HR and benefits professionals from their significant administrative burdens.

Businessolver is known for its focus on tech-driven innovation. Can you walk us through how your company approaches the integration of technology and innovation, especially in the employee benefits space?
We know from our annual Benefits Insights study that roughly 84% of employees are confused about their benefits. This number has remained statistically unchanged for six years. So not only do we need to simplify benefits, but we need to provide an individualized experience that also accounts for the employee’s overall health, risk tolerance, and financial situation, ultimately ensuring best-match coverage that promotes holistic wellbeing.

All the while, the benefits landscape is only becoming more complex. As the bar continues to rise, our goal is to continue innovating in ways that empower employees to choose and use their benefits for more meaningful, individualized experiences. Not only do we continuously gather user and client feedback, but we also solicit and foster innovation in-house, for example, through our annual internal hackathon.

It’s a unique opportunity to unleash the creativity of our talented team. Our in-house engineers, data scientists, and product developers use the two-day hackathons to ideate, design, and bring advanced tech features to our product roadmap. A hackathon was the origin of our AI virtual benefits assistant, Sofia, more than seven years ago. Sofia was an industry first then and continues to be ahead of the curve, helping employees in increasingly empathetic and intuitive ways.

One of the unique aspects of Businessolver is its use of empathetic AI in benefits administration. How do you define “empathetic AI,” and how is it helping enhance the overall employee experience?
Our guiding compass is to create “tech with heart”—technology that is a change agent by transforming the complex into a simplified journey that promotes the wellbeing of the people who interact with it. This philosophy underpins our proprietary approach to AI which is brought to life by our talented AI team. I previously mentioned how employees are confused about their benefits. Now add to this confusion the fact that employees often use their benefits during times that are either life-changing or emotionally charged, or both. So, the need for technology rooted in empathetic service delivery is especially evident in benefits.

Empathetic AI goes beyond personalization thought to anticipate and provide prescriptive assistance. If we’re doing our job right, employees don’t even know they’re interacting with AI—they just know they’re getting fast resolution or guidance with the level of empathetic interaction they’d expect from a live representative.

As we look ahead, how do you envision the future of employee benefits evolving, particularly in response to changing workforce needs and technological advancements?
The future of employee benefits is increasingly personalized and prescriptive. These changes will be propelled by advancements in technology and the ever-changing needs of a workforce that is increasingly diverse. We’re seeing growing demand for benefits that support holistic wellbeing for the employee and their family, including mental health, flexible work, and financial wellness. In Businessolver’s 2024 State of Workplace Empathy Study, it came through loud and clear that employees want flexible work options that accommodate greater autonomy in where, when, and how they work. They see this as one of the primary ways employers can show empathy and help them care for their mental wellbeing.

Technology will continue to play a transformative role not only for the employee in meeting these expectations, but for HR and benefits administrators who will be met with data insights and analytics that help them anticipate and shift with employee needs in real time. And, as the cost of benefits continues to rise, employers will need to become more invested in the tangible outcomes their benefits package drives.

Businessolver recently announced strategic sports partnerships. What role do these partnerships play in your company’s broader business strategy, and how do they align with your brand’s mission?
Our strategic sports partnerships are more than just sponsorships—they’re an extension of our commitment to innovation, community engagement, diversity and inclusion, and the cultivation of empathetic cultures. At the same time, these partnerships support our business strategy by expanding our reach and reinforcing our brand values in environments that inspire physical and mental wellness.

For example, by supporting initiatives like the Alpine Academy and Rac(H)er programs, we invest in nurturing talent and promoting inclusivity, aligning with our mission to enhance employee wellbeing and foster empathetic workplace cultures. Similarly, our partnership with TGL reflects our dedication to collaborative innovation and community outreach. By integrating our HR tech solutions with TGL’s tech-infused approach to golf, we aim to deliver engaging experiences that resonate with diverse audiences, reinforcing our brand’s mission to drive impactful change through empathetic technology.

Ultimately, sports partnerships enable us to bring our mission to life in a unique way, helping us build stronger relationships and spread our message of wellbeing, empathy, and empowerment to a wider audience.

With the rapid changes in the benefits landscape, what personal strategies do you implement as a leader to stay ahead and foster innovation within your team?
When we take care of our people, we’re also taking care of our clients and their employee members. Client experience is an outward manifestation of an organization’s people experience. So, we don’t just talk about empathy—we are intentional about listening to our employees and implementing empathetic practices in our own business. “Delight” has been a principle of ours since the company’s inception. But, you can’t delight your customers without first ensuring your employees are engaged and delighted. A culture of empathy plays a central role in ensuring employees have the autonomy and support they need to be their best selves.

I think we have an inherent desire for excellence. We expect a lot from ourselves and our colleagues, but we also know how to have fun. Autonomy, teamwork, and healthy competition, like our annual hackathon, keep us moving forward with the creativity and space needed to foster innovation.

In the increasingly competitive benefits administration market, what do you think sets Businessolver apart from other solutions?
Our deep commitment to empathy-driven innovation and “tech with heart” is at the center. Our AI is developed 100% in-house—we control our roadmap and diligently gather user and client feedback. Our net promoter scores (NPS) are proof of superior user experience (UX) design and the service outcomes we’re driving. Few companies can really prove the outcomes AI-driven tech is driving, but we continue to see real results as our AI solutions progress. For example, our call volume during annual enrollment (AE) last year was down 17%, even though our employee member population increased. That’s because of the impact AI is having on inquiry resolution and service outcomes. During last year’s open enrollment season, 95% of all chats were taken by our AI assistant, Sofia, with 92% resolved the same day. So we continue to innovate, but with empathy as our North Star.

Secondly, we believe the most important thing we can do is drive the right member experience. To do this, the employee’s overall health, risk tolerance, and financial situation all have to be part of the equation to recommend best-match coverage. The risk element is a key aspect that many companies don’t take into consideration, but from a coverage aspect, it’s incredibly important.

Third, we’re winning on the culture front. Culture and strategy are both important, but we learned early on that culture could not be on the back burner. It has to be continually nurtured. Our leadership team is intentional about listening to our employees, being transparent and open, and pivoting when needed.

What are some of the key trends or challenges you see emerging in the employee benefits industry, and how is Businessolver preparing to meet them?
The rising cost of benefits is an unsustainable trend that many employers are grappling with. With the cost of benefits expected to rise again in 2025, companies will need to get savvier with their benefits technology to offset costs while still expanding their benefits shelf —such as steerage to best-match, cost-effective plans such as HDHPs coupled with HSAs.

Whole person health is another trend that will continue and pick up momentum as Gen Z, and soon Gen Alpha, put added pressure on employers to support mental health, work-life balance, social responsibility, and a greater diversity of benefits. Our annual Benefits Insights study shows that adoption of digital benefits experiences transcends generations. This means employers must find ways to cater to a vast array of preferences and needs while making their benefits more engaging, meaningful, and prescriptive in nature.

Likewise, the push for flexibility is here to stay, especially as top talent prioritizes work arrangements that better fit their lives. In our 2024 State of Workplace Empathy study, 94% of respondents said flexibility is the top empathetic benefit an employer can offer. Leaders will need to consider and reconcile the impacts of their RTO policies on talent acquisition and retention.

What does all this mean? Efficiency does not equate to effectiveness. Companies need to carefully consider the partners, technology, and AI solutions they’re implementing. AI is not created equally. At Businessolver, our in-house team of engineers, data scientists, and product developers is focused on tech that drives meaningful outcomes. With five generations in the workforce, individualized support is important—but the delivery has to be rooted in empathy

For leaders or entrepreneurs looking to drive tech innovation in their organizations, what advice would you offer based on your experiences at Businessolver?
For leaders aiming to drive tech innovation, a strong focus on empathy and user-centered design is essential. We’ve found that aligning tech advancements with the real needs of users is what creates lasting impact.

Truly, the best innovation is the result of collaboration. Bringing together people with different viewpoints, including those in non-technical roles who may have more frontline experience with your end-user. By fostering an inclusive, user-focused mindset, leaders create the environment for solutions that are not only cutting-edge, but genuinely meaningful and responsive.

Likewise, we’re committed to supporting our clients as true partners. We provide strategic insights and support, from onboarding and open enrollment to ongoing administration, and this creates value beyond traditional benefits platforms.

Finally, as we wrap up, do you have any final thoughts or insights you’d like to share with our readers about the future of benefits administration and the role of esmpathy in technology?
It’s the role of empathetic technology to improve the employee benefits experience, and ultimately holistic employee wellness. If we’re driving people and their families to improved coverage and year-round benefits awareness and use, then we’re doing our job of not only improving the benefits experience, but overall wellness outcomes. But, it doesn’t stop there. Companies can’t afford to ignore the rising cost of benefits and the role technology plays in offsetting these costs and helping drive return on their benefits investment. Employees increasingly expect a broader benefits shelf alongside an intuitive user experience—especially as younger generations comprise a greater portion of the workforce. HR and benefits administrators can be partners in innovation while driving real outcomes for their organization.

Compensation and benefits make up a substantial portion of any company’s budget. But more than just an expense, benefits play a critical role for employees as they decide whether to join or remain with a company. To be an employer of choice in today’s shifting landscape—where the employee-employer contract is continually being redefined—companies must deliver exceptional employee experiences, and growth will be the organic byproduct.

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