Large Employers - 2017 Best-in-Class Benchmarking ...2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS Benefits Strategy & Benchmarking Survey • Conducted January -March

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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS


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Benefits Strategy & Benchmarking Survey• Conducted January - March

2017

• 4,226 participating organizations

• More than 300 questions covering the total rewards spectrum


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Participant breakdown


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Participating industries

Industries that will have a special edition of the U.S. National Report.


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360-degree integration


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Key steps to overcome obstacles to growth and profitability

Assess the current state of strategies and programs to determine where you want to go

Map your course to a desired total rewards destination using data

Climb to new heights by taking defined steps and measuring progress


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HUMAN CAPITAL STRATEGY

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Human Capital StrategyKey Takeaways

Employers should…• Make the most of human capital investments to drive business growth• Leverage tactics to create affinity among employees for their

workplace culture and boost engagement• Join the trend toward multi-year strategies


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Movement toward a multi-year strategy


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MEDICAL BENEFITS

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Employer health benefit perceptions


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Medical Benefits

Key Takeaways

Employers should…• Become more intentional and innovative about

the strategies and tactics used to manage costs.

• Consider utilization of specialty pharmacy to help manage the surging cost of specialty drugs


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Shifting cost-control tactics favor telemedicine over employee contribution


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Health plan premium cost trendKey Takeaways:


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EMPLOYEE WELLBEING

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Despite being a high priority, many are not confident in their wellbeing strategy


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Top wellness program components


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Building momentum toward total wellbeing

Key Takeaways

Employers should…• Build momentum towards total wellbeing help

to cultivate a destination employer identity and experience for employees

• Figure out how to best promote, incentivize and assimilate traditional physical health offerings into a comprehensive wellbeing strategy

• Evaluate program performance through more than just participation


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EMPLOYEE COMMUNICATIONS

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Employee Communications

Key TakeawaysEmployers Should…

• Create a comprehensive, integrated communication strategy that identifies and defines the most effective messaging and methods

• Focus communications on education, participation and value

• Utilize direct feedback from employees and metrics based on specific objectives


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EMPLOYEE ENGAGEMENT

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Employee Engagement

Employers Should…

• Gain a better understanding of employee motivations

• Measure engagement in order to formulate a comprehensive strategy and identify the right tactics for improving mindset

• Act of finding prioritized by the leadership team and communicated to the organization

Key Takeaways


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LIFE INSURANCE & VOLUNTARY BENEFITS

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Life Insurance & Voluntary Benefits

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Key TakeawaysEmployers Should…

• Consider offering life insurance as plans are more affordable than what employees can obtain on their own

• Note that voluntary options can be customized to appeal to specific groups

• Carefully deploy and communicate voluntary offerings to ensure accurate reflection of perceived value


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Support for life needs and goals, beyond healthcare


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ABSENCE MANAGEMENT

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Absence ManagementKey TakeawaysEmployers Should…

• Adopt an absence management strategy

• Establish data-driven controls for leave management to help meet employee expectations, keep pace with industry benchmarks and comply with regulatory demands

• Consider unlimited PTO as a possible strategy for addressing compliance challenges of leave-related law


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Approach to paid parental leave


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Offering short-term disability benefits increases with the size of the employer


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Two-thirds of employers offer a long-term disability benefit


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RETIREMENT BENEFITS

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Retirement Benefits

Employers Should…

• Help employees identify, mitigate and manage financial stress at each life stage

• Offer programs like auto-enrollment and auto-escalation to stimulate savings

• Drive participation and program value by deploying programs based on data and identification of employee needs across their life stages

Key Takeaways


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Non-qualified plans provide added retirement security for key talent


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Employer Healthcare is here to stay…


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2017 Best-in-Class Benchmarking Analysis for Large Employers


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Purpose of Benchmarking

A best-in-class benchmarking analysis shifts the focus away from “average” so employers gain perspective on what it means to be the best.


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• Gain perspective on what high-performing organizations have in common

• Challenge assumptions about what’s possible, not cast a mold for the ideal

• Get a sense of where they stand compared to the best in class of a similar size

• Redefine and refine their strategies, tactics and operational execution to succeed

Purpose of Benchmarking


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How to Apply this Research

While we identify commonalities in the profile groups, it’s important to realize that the results are not a prescription for success.


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MethodologyMethodology


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• Successful containment of health plan premium increases over the last 3 years

• Self-assessed healthcare cost management strategy effectiveness

Best-in-Class Large Employer:Healthcare Cost Control

Measures of best-in-class healthcare cost control


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• Saving more by spending less• Planning proactively by using data• Emphasizing consumerism and financial protection• Prioritizing production and productivity


Key Themes


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Saving More by Spending Less


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Planning Proactively by Using Data


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Emphasizing Consumerism and Financial Protection


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Prioritizing Production and Productivity


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Best-in-Class employers are achieving success through:

• Leveraging employer cost controls including benefit contribution amounts and eligibility restrictions, and limits on professional perks

• Strategic benefits planning

• Applying tactics that promote employer and employee financial health

• Viewing compensation and benefits spend as an investment in driving human capital performance and achieving business outcomes


Profile Group Summary


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• Turnover percentage• Success of employee communication efforts• Assessment of workforce satisfaction, motivation and commitment• Completion of a workforce engagement survey within the last two years

Best-in-Class Large Employer:Human Resource Management

Measures of best-in-class human resource management


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• Viewing benefits as engagement tools and organizational assets

• Focusing on benefits innovation and contribution criteria to control costs

• Emphasizing employee engagement and strategic communication


Key Themes


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Viewing Benefits as Engagement Tools and Organizational Assets


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Focusing on Benefits Innovation and Contribution Criteria to Control Costs


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Focusing on Benefits Innovation and Contribution Criteria to Control Costs


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Emphasizing Employee Engagement and Strategic Communication


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Emphasizing Employee Engagement and Strategic Communication


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Best-in-Class employers are achieving success through:

• Application of total compensation outlook, actions and outcomes

• Countering higher benefit costs with more innovative tactics

• Comprehensive communication strategies and application of engagement tactics to drive professional development




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Best of the Best —Top Performers in Both Profile Groups


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• Adopting long-term planning and enhanced strategic integration

• Acting on a commitment to inform and engage employees

• Promoting employee wellbeing and accountability


Key Themes


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Adopting Long-Term Planning and Enhanced Strategic Integration


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Acting on a Commitment to Inform and Engage Employees


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Promoting Employee Wellbeing and Accountability


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Promoting Employee Wellbeing and Accountability


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Best-of-the-best employers are achieving success through:

• Application of total compensation outlook, actions and outcomes

• Countering higher benefit costs with more innovative tactics

• Comprehensive communication strategies and application of engagement tactics to drive professional development




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2018 World’s Most Ethical CompaniesWe value organizational culture, vision and mission. Gallagher lives its mission, vision and values through our people, as a result we’ve been recognized as one of the World’s Most Ethical Companies seven years in a row by Ethisphere Institute™.


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THANK YOUNicole Negvesky, GBDSArea Senior Vice President4350 West Cypress St, Tampa, FL 33607Cell: [email protected]

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Large Employers - 2017 Best-in-Class Benchmarking ...2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS Benefits Strategy & Benchmarking Survey • Conducted January -March