A Closer Look...

Why is employee benefit planning important?

1. Because employee benefits are a very significant element of total employee compensation, they should be planned and organized to be effective in meeting employee needs;
2. Employee benefits currently represent a large item of labor cost for employers ranging from less than 21% to over 49% of an employer's payroll. Effective planning and avoidance of waste can be an important employer cost-control measure;
3. Current benefits are often adopted on a piecemeal basis, without being coordinated with existing employee benefit programs. This can lead to unnecessary benefit overlap or gaps;
4. A systematic approach to planning benefits helps keep an employee benefit plan current, competitive and in compliance with regulatory requirements; and
5. It allows benefits to be integrated properly with each other.

Setting objectives

The design, review, or revision of any employee benefit plan should start with setting overall objectives from the standpoints of both the employer and the employees.

What benefits should be provided?
Who should be covered by the benefit plans?
Should employees have benefits options?
How should benefit plans be financed?
How should the benefit plan be administered?
How should the benefit plan be communicated?

Our specific services

We can:

• Offer a systematic method of analysis to the overall employee benefits program so the plan remains current, competitive and in compliance.
• Analyze the employee benefits program as a coordinated whole in terms of its ability to meet various employees' (and others') needs.
• Manage loss exposures within the organization's overall compensation goals and cost parameters.