Health and Welfare Plans Strategic Planning and Design

Workforce Trend Considerations

Aging workforce, Multigenerational workforce, household composition, Voluntary Benefits, Consumer Driven Health Plans

Benefits Strategy Goals

Aligns w/ other organizational strategies, Reflects all interests, Allows fluidity

Vision

Aspirational statement about what the organization wants to become and what the organization wants to be known by. It drives the direction of an organization.

Internal Factors Influencing Benefits Strategy-Employee

Benefits demands, Perceived benefits value, Benefits entitlement, Changing job perscpectives

Strategies within and organization

Business Strategy, HR Strategy, TR Strategy, Benefits Strategy

External Factors Influencing Benefits Strategy

Competitive practices, Regulatory environment, Taxation, Provider Industry Conditions, Economy, Labor market changes, Current conditions

Key Activities for updating benefits strategy

Conduct baseline analysis, Conduct competitive analysis, Evaluate strategies and goals, Conduct workforce analysis, Consider workforce trends

Internal Factors Influencing Benefits Strategy-Employer

Corporate factors, Corp Culture, HR factors, HR Management, Workforce demographics, Technology, Organizational changes, Risk Transfer

Workforce analysis

Cost, Participation levels, level of appreciation, Utilization

Baseline Analysis: Benchmark against

Cost, Utilization, Vendor performance, Employee satisfaction, Vendor contracts, baseline measurements

Examples of business strategy

Customer intimacy, Operational excellence, Product/service leadership (innovation)

Conducting Competitive Analysis

Define peer group, acquire peer group comparison data, benchmark, analyze results, compare to desired state

Determine Desired State by

Developing Benefits Goals, Develop Benefit Tactics

Business Strategy

Drives Total Rewards Design and is derived from the vision and mission of an organization. Company's broad plan for competitively positioning its products or services with the intent to accomplish or support the company's mission

Tools that determine current benefit state

Employee Surveys, Focus Groups, Management Interviews, Management Reports, External surveys, Professional Advisors, Specific Performance measures, Benchmarks

Reasons to benchmark

Helps determine how well plans are operating & what changes or enhancements are needed. Provides an opportunity for an organization to assess what needs to be achieved and to present senior management a comparison snapshot.

How to benchmark

Identify relevant surveys, participate in surveys, benchmark what you want to manage, control or change

Benefits Assessment and Planning

Long-term (3-5 years) Medium-term (2-3 years) Short-Term (1 year)

HR strategy

Overall plan for attraction, motivation and retention of employees.

Strategic Benefits Design Process

Review Strategies, Conduct Gap Analysis, Select and Design Benefits Plans, Determine Costing, Select Funding Method, Management Approval and Implementation

Gap Analysis

Process of obtaining and analyzing information to determine the current state of your benefits and compare them to the desired state of your benefits

Tactics

Refer specifically to action. "Doing" aspect

Short-Term Planning Assessment

Reflect on long-term planning goals, Tactical or operational decision, Business plan, year-to-year annual budget

Line of sight

Strategy, Goals, Tactics

Medium-term assessment and planning

Strategy/policy issues, Administrative issues, Outsourcing goals, Meaningful interim situations, Reflect on long-term goals, Tactical or operational decision, Business plan, Year-to-year annual budget.

Goals

Support the vision of strategy. SMART Specific, Measurable, Attainable, Relevant and Time-bound

Strategy

The major course of action that enable you to accomplish your mission.

Mission

This is the foundation of your organization. It describes how the organization will accomplish its vision.

Long-term assessment and planning

Trends, Strategic assessment, EX: Move from paternalistic to shared accountability

Total rewards strategy

Uses HR strategy as its basis. Each of the five total rewards elements are addressed in this strategy.

What to benchmark

Value, quality, service, cost-effectiveness, plan design features, plan experience, total compensation indices