Cost Tips

Measuring Value (Benefit Tips ® - © 2013)

The price of employee benefits can be as simple as dividing the monthly cost by the number of employees. But price is only part of the value equation. Calculating the value of benefits involves measuring indicators of success (employee satisfaction & turnover) for each strategic priority (staff retention) in addition to financial indicators of success (price & stability).

While the tools used to combine financial and nonfinancial performance measurement are diverse, the goal is to translate mission and strategy into objectives and measurements. Whether you use the Balanced Scorecard (BSC), Continuous Quality Improvement (CQI), or Plan-Do-Check-Act Cycle (PDCA), or Results Based Accountability (RBA), the value of employees benefits will be based on your unique goals and values.

The impact of a goal-oriented employee benefit plan is often under-estimated and can dramatically impact the viability of meeting your business objectives.

Your Benefit Promise (Benefit Tips ® - © 2015)


What commitment are you communicating with your benefit plan design? For decades the message has been, “Don’t worry, we’ll take care of you.” But the tension between private sector innovation and government health plan cost cutting leaves employers increasingly vulnerable.


Cost shifting and medical advancements have left employers vulnerable. Open-ended commitments result in claims that no one anticipated. Group insurers aren’t much help since they change their rates annually based on actual and anticipated claims. So if you have a high claimant then you will pay for it yourself in the renewal rates


You can limit your commitment by explaining what is not covered or by putting maximums on what is covered. There is integrity in knowing your boundaries. First decide on exactly what support you wish to provide employees and their families and then limit your exposure to that.