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Strategic Benefit Planning - May 2017
Competitive employee benefits packages are essential for
attracting and retaining quality employees, but continuing to offer them can be
tough with the rising cost of health care squeezing an already tight budget.
Cutting benefits may seem like a necessary reality for some companies, but
could have serious long-term consequences.
Retaining employees throughout these rocky economic times is
vital so that your company remains competitive and positioned favorably in its
industry when the economy rebounds. One remedy could be implementing a
strategic benefit plan, which will help you find ways to contain or even cut
costs while still offering competitive benefits.
What is a strategic benefit plan?
A strategic benefit plan is a three-to-five-year plan
crafted by you and your CMR Risk & Insurance Services, Inc. representative
that outlines goals, strategies and action plans in regards to your employee
benefits program. In creating the plan, you and your broker will strategically
analyze ways to contain costs through various plan improvements. This approach
is a methodical and logical long-term approach to benefit planning, as opposed
to making decisions year to year, and will provide a thought-out road map for
your future benefits.
What are the benefits of implementing one?
At the company level, creating a strategic benefit plan will
help greatly with internal budget planning and can also be incorporated into
your corporate strategic plan. This will bring HR and employee benefits into
larger strategic conversations and ensure that a competitive benefits package
continues to be available.
Employees will also see the benefit from a strategic benefit
plan in many ways. First of all, by finding ways to cut and contain costs for
the company, the employee will likely reap some of the savings as well. In
addition, this type of plan will provide assurance for employees worried about
their benefits. Next to job security, employees worry most about their benefits
and compensation, namely that they could be reduced or cut at any time.
Studies have shown that workplace morale is strongly linked
to the quality of employee benefits, so reassuring employees that their
benefits will continue is a beneficial move for companies. The strategic
benefits plan can include an employee communication initiative, which will keep
employees informed and assured on the future status of their benefits package.