The Small Company Syndrome
Does your company suffer from the Small Company Syndrome? Firms suffering from the Small Company Syndrome have 3 things wrong with their employee benefits program:
1) They are wasting time.
- To get lower rates, small companies spend a lot of time tendering their benefits program,
- Confusion is created using multiple advisors tendering multiple RFPs, Time is wasted resolving transfer issues,
- Small companies endlessly create new relationships with new suppliers,
- Too much time is spent managing the benefit plan, rather than running the company,
- Small companies are unable to delegate the administrative activities.
2) They are losing money.
- Small companies typically pay higher rates for their insurance,
- They are forced to buy insurance retail, Inability to buy at a high volume,
- Small companies have no clout or leverage with the insurance companies,
- Human resources are spent on non-value added work related to their benefits plan,
- Small companies do not understand what are driving their costs,
- Costly plan design changes are undertaken that do not have the desired effects,
- Facts that negatively impact the cost of the benefits plan are not measured,
- An under-performing benefits plan causes the small company to lose employees, which costs the company money,
3) They are not achieving their goals.
- The small company has no clear goals for their benefits plan,
- There is no strategic plan that links their benefit plan to their corporate objectives,
- They are not using big company strategies to improve their benefits plan,
- Time and money spent on their benefits plan takes time and money away from running the other aspects of business,
- Small companies do not have a strategic specialist assisting with their benefits plan.
If your firm is suffering from one or all of these symptoms, we recommend you do three things:
- Get a carrier to treat you like a big company
- Employ big company strategies to decrease claims;
- and Take the time to develop a long-term plan of action to implement these strategies.
We have discovered that companies that implement these strategies save 10 to 25 percent of their benefits plan costs.
Contact us today to see if you qualify for our free 60-minute starter session.