If you happen to be operating in an industry where inflation has increased the price of your products or services faster than general rising costs you are in the minority. Inflation burning hot has increased production and wage costs, and eaten into margins for most businesses.
At the same time, we consistently hear that good people are harder to find than ever and the replacement cost of lost productivity is hurting employers in every sector. In spite of the rising cost of doing business, employee benefits remain a core tool for recruitment and retention. A survey conducted by CITE Research on behalf of Lively Inc. last fall indicated that 84% of US employers were increasing benefits offerings to help bolster efforts on both.
How as an employer can you manage increasing your spend on benefits while the cost of everything else is going up? One potential avenue is first making sure that the dollars currently allocated to these programs are actually being spent on what makes a difference for you as a plan sponsor – paying claims for your staff.
Large employers enjoy a scale of economy on benefits plans which translates to lower insurance company margins. As a medium or small employer, controlling your margins is a great first step to understanding your overall plan costs.
Our fee for service model typically reduces the existing cost of consulting. This cost is likely currently buried in your benefit plan margins. Removing that item lowers your rates and improves the margins, meaning that more of your dollars and cents are reimbursed as health and dental claims. This will instantly stretch your budget further and may give you some additional funds to enhance your plan now.
We believe that as the job market and economy have evolved, it is time to revisit how you look at benefits. How you pay for those benefits, and the services that come with them is a conversation almost no plan sponsors are having today.
To learn more about how fee for service consulting can help optimize your benefits budget, book a meeting here –