“ MANY BUSINESSES WASTE MUCH OF THEIR INVESTMENT IN THE EMPLOYEE BENEFITS PACKAGE BECAUSE THEY DON’ T GET THEIR DESIRED RESULTS.
AT QANDUN, WE FOCUS ON OUR CLIENT’ S RETURN-ON- INVESTMENT AND MEASURABLE RESULTS. WE ARE WILLING TO PUT OUR COMPENSATION ON THE LINE WHEN ALLOWED.”
- RUDY GARCIA
EMPLOYEE BENEFITS
“ MANY BUSINESSES WASTE MUCH OF THEIR INVESTMENT IN THE EMPLOYEE BENEFITS PACKAGE BECAUSE THEY DON’ T GET THEIR DESIRED RESULTS.
AT QANDUN, WE FOCUS ON OUR CLIENT’ S RETURN-ON- INVESTMENT AND MEASURABLE RESULTS. WE ARE WILLING TO PUT OUR COMPENSATION ON THE LINE WHEN ALLOWED.”
- RUDY GARCIA
WE |
ASKED |
BENEFIT |
ADVISER |
RUDY GARCIA, THE SUBJECT OF |
THIS ISSUE’ S COVER STORY, TO |
SHARE HIS EXPERTISE TO HELP |
EMPLOYERS MAKE SURE THEIR |
EMPLOYEE BENEFIT PLANS ARE |
ACHIEVING |
THEIR |
INTENDED |
GOALS. |
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Is your company like most, where employee benefits are your second largest budget line item behind payroll? Companies invest many thousands of dollars, often into five figures, per employee for employee benefits. But what is the actual impact of those benefits on key business goals such as retention and productivity? And what is your return-on-investment( ROI) on your benefits spend?
Most company executives and senior managers mistakenly conclude that merely offering benefits inevitably produces higher retention and greater productivity. If you are like many companies, you may be wasting much of your benefit investment.
In our work at Qandun Insurance Agency, with employers large and small, our emphasis is on measuring and controlling the actual cost of benefits while measuring and ensuring the actual results that employers want from their benefits investment. We perform an unbiased costbenefit analysis on your employee benefits to ensure your investment is getting the results and return you desire.
But while your benefits spend can be squandered with the wrong benefits plan and poor execution, when done correctly, benefits are a highly cost-effective strategy for employers.
THE VALUE OF WAGES VERSUS THE VALUE OF BENEFITS Companies have two main tools to increase employee retention and productivity: wages and employee benefits. Employee surveys from MetLife * and other groups consistently show that employees value their benefits as much as or more than their wages. That’ s great news for smart employers because $ 1 in employee benefits costs the company 66 % less than $ 1 in employee wages.
Although wages are a deductible expense, $ 1 in wages equals about $ 1.20 to $ 1.30 in overall cost to the employer. But $ 1 in benefits costs the employer a net of only $. 70 to $. 80 because the following items reduce the benefit cost:
• Payroll tax savings
• Workers’ compensation premium savings
• Corporate tax deductions
• Gain in profitability due to reduction in employee turnover
• Increased productivity of a healthier and happier workforce
Employee Benefits:
Measuring Affordability & ROI
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