EMPLOYEE BENEFITS
Employee Benefits :
Go Back To Basics For A Healthy ROI
BY : JOHN COCHRANE PARTNER , PRINCIPAL JDIMI CONSULTING
Like most organizations in your industry , or companies in general , you have a health benefits program . The recollection of how and why it was implemented and designed in its current form is now a distant memory . No doubt you want your employees to be healthy and happy , but you are also running a business . How do your present-day corporate objectives align with your health benefits program and what is its return-on-investment ( ROI )? This can all be determined and measured if you are willing to go back to basics .
Just like you expect investments in technology and equipment to bring a positive return on investment , so should your investment in employees . If you aren ’ t receiving a measured ROI from your health benefits program because you are only providing minimum benefits to remain competitive , you ’ ll need to review your plan . If you consider competitive operations that have long-term employees who report to work every day producing whatever product or service you ’ re selling , then you should treat the ROI for investing in employees as a make or break asset in your business .
SQUARE ONE Returning to square one with your health benefits plan is the first step in determining if the plan has delivered a return . Answer a few questions to create a historical picture of what has or has not been accomplished :
• How long has it been since your plan was created ?
• What changes have been made along the way to accommodate your marketplace ?
• Review your employee demographics . Has it changed over time , and is your plan still meeting the needs of your workforce ?
• Has your insurance broker considered an update for you ? Have employees
30 | FALL 2016 made requests that may have fallen on deaf ears ?
• Has your program adapted technologically , financially and contractually ?
THE TIMES HAVE CHANGED Looking back , it becomes obvious that the times have changed , and nontraditional , out-of-the-box thinking is needed for your health plan ’ s makeover to ensure you are maximizing its ROI in today ’ s new and evolved marketplace .
During the last decade , a significant number of employers have been guided and directed by traditional benefits brokers and their respective insurers . For all intents and purposes , these employers have neglected to alter their program to maximise their employees ’ well-being and to adapt to their ever-changing employee demographics and work environment . These same brokers and insurers continue to focus on premium and expense dollars rather than helping organizations realize a return on investment . It forces employers into a cycle of dollar shifting to adjust to continually rising premiums and frequently altering available benefits on a strictly cost-reactive basis .
Until organizations consider their benefits program as an investment rather than an operating expense , how will they or their brokers ever consider developing a method of achieving a return ?
CHANGING THE WAY YOU THINK Stop thinking of your benefits program as an expense and start thinking of it as an investment . This is the only way to develop an expectation of return . Here are some very important questions to consider and investigate to help you devise an ROI measurement :
• Was your benefits program implemented out of necessity to compete for talent or to remain competitive in your industry ?
• Is your employees ’ well-being primary or secondary ?
• As an employer , do you truly understand your benefits program and the consequences of its design ?
• Should you just mirror a competitor ’ s plan because it is in the same industry ?
• Are you considering your benefits program as part of the total compensation package or as a standalone benefit , and if so , is it measured as a whole or separately ?
CHANGING YOUR BENEFITS RESOURCE If you are unsure of where you stand with your health benefit program ’ s ROI and your current broker hasn ’ t even broached the subject with you , it may be time to consider a change .
If you have complained about not knowing whether your plan is measuring up and your broker hasn ’ t responded with any useful information , it may be time to consider a change .
If your broker has not approached you to consider benefit plan changes to accommodate changes in your workplace environment and demographics , it may be time to consider a change .
You , as the responsible party , should partner with a trusted advisor who is capable of quarterbacking the process that works best for your company , that understands outof-the-box thinking and who best deserves your business . +
John Cochrane has 20 + years experience in the Employee Benefits Consulting industry and is regarded as one of the leading consultants in the Health Care field in Canada with respect to innovation and strategic planning for corporations . Over the past few years , he has successfully developed and implemented a non-traditional and visionary approach to group insurance that has changed the face of the industry in Canada .