IBS employs a highly structured multi-step
process for developing a Company's benefit program strategy
and evaluating the appropriate tactics to be deployed. This process has
been developed and refined for over 25 years. It provides
our clients with the greatest focus of resources consistently
throughout the HR function of the company on activities that
drive bottom-line margin, sustain competitive advantage and build
true enterprise-wide value.
Click on a phase below to view:
PHASE I: Determine
Objectives
Create a Planning Committee
We suggest forming a Planning Committee of three to five executives.
Members of the Committee should have broad backgrounds and responsibilities
so that a diversity of perceptions are represented. The participants
should be capable of expressing or establishing policy.
Study Background Information
In order to respond effectively to the issues raised by our questions,
we supply the participants with advanced educational material
which covers the important factors to be discussed. This includes:
- Documenting current benefits.
- To inform participants on where they are now with respect
to current benefit plans. To achieve both a better understanding
of all existing benefit plans and a better understanding of
the current employee benefit costs and factors affecting such
costs.
- Employee benefit trends.
- Provide participants information concerning emerging trends
in employee benefits.
Complete Questionnaire
A detailed customized questionnaire is prepared for completion
during management interviews by IBS consultants.
Identify Problem Areas
Participants are asked to identify problem areas that exist in
the company's current benefit plans for review to determine acceptable
solutions.
Formulate Objectives
The participants will discuss questions formulated to help reach
consensus on benefit objectives. We assist the group in reaching
a consensus on major issues. We bring to these discussions our
independence and objectivity, our knowledge of alternatives and
what other organizations do, our ability to test responses for
consistency, and our ability to be creative. When necessary,
we take a role of the "devil's advocate."
Prepare a Written Statement of Objectives
We will draft a tentative statement of the company's benefits
objectives. This draft will be submitted to the Committee for
review and revision as necessary. The final statement, as approved
by the Committee, will be used as the basis for further study.
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PHASE II: Employee
Benefits Analysis
Evaluate Current Benefit Plans
Once objectives have been established, the next step is to compare
the company's benefit plans against such objectives. The purpose
of this step is to further enhance the understanding acquired
in PHASE I -- where the company is now in relation to where it
would like to be. This allows the Committee to obtain a clear
understanding of the strengths and weaknesses of the company's
current program.
To accomplish this, the benefit design of each plan will be tested
against appropriate management objectives. The evaluation in
PHASE II will deal with a number of questions including:
- Are benefits adequate based on the tentative standards set
by management?
- Do current benefits satisfy employee needs? Should input
from employees be considered?
- Are benefits effectively integrated with governmental programs
and other company sponsored plans?
- Are benefit plans meeting the company's competitive objectives?
- Do benefit plans reflect the needs of future acquisitions?
- What balance needs to be achieved between cost-effectiveness
and ease of management and administration?
- Are current benefit costs acceptable? Do current plans have
adequate cost controls? Can additional cost controls be implemented?
Are there more cost effective methods for funding benefits?
- What will benefit costs be over the next three to five
years after reflecting wage increases, change in the work
force, turnover, and other facts that impact on cost? Are
these costs acceptable? How should they be measured
and benchmarked?
- Taking into account all related sources of
benefits, do gaps and overlaps exist?
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PHASE III: Develop
an Operational Plan Strategy
Once alternatives have been developed, presented, evaluated
and decisions are made by the Committee, an operational "game
plan" is developed in order to assist management in implementing
those changes which are deemed necessary. Its purpose is to
balance long and short range benefit needs against budget requirements.
A prioritized written plan will be developed which covers the
following:
- Which plans are to be curtailed or eliminated?
- Which plans are to be revised?
- What are the priorities for benefit revisions or additions?
- What is the estimated timetable for making each change?
- What are the projected benefit costs?
- What portion of total benefit costs will be paid by employees,
and what portion by the company?
- What steps will be taken to
control benefit costs in the event that actual plan costs exceed
budgeted costs?
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PHASE IV: Turning
Strategies into Reality
Once decisions have been made by management in PHASE III, implementation,
administration and communication strategies are developed to
ensure a smooth transition.
For both short and long term success, however, it is important
that employers recognize that it is the integration of both short
and long term strategies which will yield the greatest benefit.
Moreover, an integrated set of actions, as opposed to episodic,
isolated efforts, is essential to be successful.
Our approach for investigating various strategies is highly systematic
and task oriented. The strengths of this approach lie in the
structured process of problem analysis, evaluation of a spectrum
of possible actions, and development of appropriate strategies
to achieve the goals established. The result is a translation
of strategy into a well thought out set of actions.
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