How Atomic Habits Can Teach Employers to Take Control of Their Healthcare Plans
James Clear’s bestselling book Atomic Habits opens with a deceptively simple but powerful idea: small changes, made consistently, can lead to remarkable results. In Chapter One, Clear shares the story of the British cycling team’s transformation under the philosophy of “marginal gains” — improving every area of performance by just one percent. These tiny improvements, compounded over time, led to historic Olympic victories and Tour de France wins.
This philosophy offers a surprisingly relevant and powerful analogy for employers navigating their employer-sponsored healthcare plans. Each year, benefits managers and CFOs face decisions that can feel overwhelming. Rising costs, complex regulations and changing employee needs all add pressure. But what if, like Clear’s cyclists, employers could approach their health plan strategy not with massive overhauls, but with a series of small, focused improvements?
The Power of Small Wins
Clear’s central argument in Chapter One is that outcomes are not the result of one-time changes, but of systems and habits. In the world of employer-sponsored healthcare, many leaders take a reactive stance — making big plan changes only when faced with a cost spike or employee dissatisfaction. But that approach often ignores the long game.
Employers can apply the Atomic Habits framework by identifying and improving key areas of their health plan one step at a time - control the controllable. A few common examples include:(reach out for the extensive list)
Data transparency: Regularly reviewing claims data to identify cost drivers instead of waiting for renewal season surprises.
Chronic care management: Implementing nurse navigation or condition-specific programs to support high-risk employees.
Pharmacy benefit audits: Evaluating PBM contracts for hidden fees and better formulary management.
Communications: Making benefit education part of the culture, not just a once-a-year event.
Each o ff these actions may seem small in isolation, but together they shape a smarter, more sustainable benefits strategy.
Identity-Based Strategy
Clear argues that the key to lasting change is not just behavior modification, but identity transformation — asking “who do we want to become?” rather than “what do we want to achieve?”
For employers, that means shifting from being a passive payer of health claims to an active steward of their healthcare spend. Instead of chasing lower premiums, employers can ask: “Do we want to be a company that empowers our people to be healthier, more productive and more supported?” That change in mindset transforms the types of decisions that are made — and how they’re implemented.
Habits Are a System, Not a Goal
Finally, Chapter One reminds us that goals are good for setting direction, but systems are what carry us forward. A high-performing employer health plan is not built in a single renewal season — it is the result of consistent behaviors: reviewing data, engaging the right partners, questioning status quo contracts and listening to employee feedback.
Just as the British cycling team became a dynasty through marginal gains, employers can achieve healthier workforces and controlled costs through the compound effect of small, smart decisions made year after year.
Final Thought
The lesson from Atomic Habits is clear: success doesn’t come from one major shift, but from mastering the small things that add up to big change. Employers who approach their healthcare plans with the same mindset will not only save money — they will build a better benefits culture from the inside out.
Chief Encouragement Officer (CEO) | Executive Success Coach | Organizational Consultant & Talent Optimization Strategist | Live2Lead Host | Certified Speaker, Trainer, & Coach
1wOne of my favorite books! It's definitely worth an occasional re-read! I had the chance to hear James Clear speak at an International Maxwell Conference, and I couldn't wait to get home to read my book again! So many wonderful nuggets!
Qualified Somatologist | CIDESCO & Eve Taylor Aromatherapy | Industry Enthusiast & Skincare Educator | Isa Carstens Alumna
1wI'm currently working through Atomic Habits again too—this time reflecting more deeply on Chapter 1 and how identity shapes change. I recently shared a post about it from a mentorship angle. It's so interesting to see how others apply it in different contexts—your employer-healthcare lens sounds like a fascinating one!
Benefits strategist | GTM | AI enhanced workflows | Girl-Dad(x3)
2wAbsolutely agree that identify transformation is the foundation for a less reactive based system.of thinking