It’s no secret that the cost of employee benefit plans are major issues for most plan sponsors. With premium increases running in advance of revenue growth and profitability, plan sponsors need to look at things in not just a different but a better way. That’s where strategy comes in.
Smart plan sponsors are starting to take a strategic approach to employee benefit plans. Like any good strategic plan, the process starts with understanding the purpose or mission of a benefits plan. What is your company offer a plan anyway? How do your employees look at the plan? Is it truly a benefit? Or is it in an entitlement?
In addition, smart employers look at their benefits plan in the context of the environment they’re operating in. Is the competition for employees tough? Are there threats in your operating environment that will drive up the cost of your plan? Are there opportunities to enhance understanding and alter your employees’ expectations?
Addressing these and other issues in a systemic way - a strategic way - are all factors that go into developing and executing a long-term strategy that smart employers use to convert their benefits expense into an investment - and like any other investment, they can and should expect positive return.
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