Employers realize their employee benefits may be the deciding factor in their ability to recruit and retain the top talent.
Adopting innovation as the foundation of a company strategy to provide employees with high quality, cost efficient benefits is a trend that is changing employer thinking. Making a transition to a strategic approach requires companies of all sizes to engage in a different way to purchase, manage and evaluate their benefit plans.
At the August CEOtoCEO Breakfast AristaPoint CEO Pat Chestnut and UHC Northwest CEO Claire Verity presented how to make the transition to Strategic Thinking and present the latest Innovations that employers are implementing to have a “Best Company” employee benefit program.
The Strategic Approach to purchase, manage and evaluate their benefit plans.
- Define Written Goals & Objectives
- Establish a Purchasing Process
- Know Your Market Segment & Rating Options
- Require Transparency of Cost
- Marketing Compensation & Services
- Evaluate Internal Administration Costs
- Benchmark Benefits
- Versus Competitors
- Establish a Healthcare Budget
- % of Compensation
- Total Expenditure
- Develop a Contribution Strategy
- Defined Contribution vs Percentage
- Data Driven Decisions
- Determine Data Points for Evaluation
- Develop a Product / Benefit Plan Strategy
- Analyze Carrier Performance
- Review Communication Tools
- Inventory Engagement Tools
Access to Care
During our CEOtoCEO breakfast in late November, we had the privilege of having Pat Chestnut, CEO of AAOA Healthcare speak to us about the Healthcare Reform Act.
As you saw from an earlier post, he talked about a variety of aspects relating to business owners and top executives of small to middle market companies in the State of Washington. We wanted to share a small portion of the speech where Pat talked about the “Three Acts” as he called it. These are taking us from the beginnings to today and what each of these acts represent.
Let us know what you think. How is this impacting you and your company? Have you figured it out yet and what costs is it presenting to you? How is it going to help motivate or de-motivate your employees? Share your thoughts…
I don’t know about you but I find that the changes in healthcare benefits are murky and confusing at best. Pat Chestnut, AAOA Healthcare, provided a candid peek under the tent of what is going on with the politically charged Affordable Care Act.
One of the valuable nuggets Pat shared at the CEOtoCEO Breakfast is identifying the most common mistakes business owners make when buying insurance
- Not being involved in the benefit decision – Delegating all decision making authority to an HR department. “The one and only thing you can’t delegate is your responsibility to make the best decisions.”
- Reactive vs Proactive – Shopping every year and changing carriers rather than building a benefit strategy. “Do you buy a new car every year? Why would you need to buy a new policy every year?”
- Spending vs Investing – Viewing benefits as an expense rather than an investment and treating it as one. “Healthcare benefits have become a major employee attraction and retention tool.”
At the beginning of the November CEOtoCEO Breakfast Pat Chestnut, CEO of AAOA Healthcare, posed three questions to the 59 CEO’s and Business Owners in attendance. The questions and highest rated responses (in red) are as follows:
1. Why do you provide benefits?
a) Because I should.
b) My competitor’s do.
c) To attract and retain employees.
d) My wife told me I had to.
2. What is your strategy to address healthcare reform?
a) Buy whatever has the lowest cost.
b) Shop every year.
c) Change carriers to lower cost.
d) Hope healthcare reform goes away.
e) Rely on my broker to tell me what to do.
3. How are you budgeting for the increasing cost of healthcare?
a) Find the best plan I can afford each year.
b) Splitting the increasing costs with employees.
c) Reducing employers contributions for employees and dependents.
d) Sending employees to the government exchange.
e) Not providing benefits.
How would your answers compare and contrast with your peers?