“ 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
RUDY GARCIA , THE SUBJECT OF
THIS ISSUE ’ S COVER STORY , TO
SHARE HIS EXPERTISE TO HELP
EMPLOYERS MAKE SURE THEIR
EMPLOYEE BENEFIT PLANS ARE
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