Too true, and rightly so, business owners deserve the best rates. Always. But at what cost to their coverage and employees?
That is an ironic question.
As benefit consultants, do we not need to first and foremost ensure the coverage is in place as expected? Consider, if an employer has recruited staff based on the assumption that they offer a “competitive benefit package” and we as the advisor have not aligned our offering with that promise.
Isn’t the best “bang for the buck” when employees in need, requiring prescriptions, equipment, services, practitioner help have the coverage they expect from their employee package?
Benefits ARE a Promise kept from the employer to the employee, not only at recruitment time, but through the entire employee journey.
Sometimes we may wonder, have we turned into an industry of selling “rates”? Rather, shouldn’t we be the professionals taking the time to build an intentional “benefit” plan designed to work seamlessly and complement existing corporate culture and compensation strategies? If it’s all about selling rates, what is the unique differential? Our offering instead is no different than the next rep in the door. There is no value add.
Of course, there is, in my opinion, a time and place for a market evaluation:
· A new group with no existing benefit coverage to make the choice based on plan design options and a cost comparison evaluation
· An organization unhappy with existing coverage and servicing from their present provider with the full intention to move
· To test the marketplace against what is available
· When new platforms and products come available not presently offered within the existing program
The challenge then, within in the benefit sphere, is to be a “consultant”.
If the go-to at renewal is a market study, may that be a learning opportunity to show that the client requires an education of the coverage, the offering, how rates are structured, and what they may lose in the process. Additionally, it is an opening to “up the game” and exhibit real value by aligning the benefits with the employee journey.
As professionals, here’s what we know:
· There’s always someone willing to “buy” the business
· The rates will typically always go up based on the usual factors like plan usage, demographics, size, economic conditions, etc.
· A move—based on rates only—almost always results in a loss of existing coverage. The adage, “you get what you pay for”.
And, here’s what we also know:
· When a plan is built based on the company culture, to align with the compensation, engagement, recruitment and retention strategies, the benefit program is then seen as an “investment” into the employees and not considered an expense on the financials.
As a friend and colleague said:
“How you do ANYTHING is how you do EVERYTHING…it is the little things that matter” Corbin Lightfoot
We’d be pleased to engage further on this topic. Give us a call.
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
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Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
