Selling Non-Traditional Benefits in a Recovering Economy

Transcription

1 Selling Non-Traditional Benefits in a Recovering Economy Elizabeth Halkos Chief Marketing Officer Sept 27, 2011

2 Agenda Economic Recovery Macro View Economic Recovery Benefits View Choosing the Right Benefits Strategy Consulting Approach Case Study Communication Strategy Effective Communication Case Study

3 ECONOMIC RECOVERY

4 Recovering Economy

5 Gas Prices

6 Housing Market

7 ECONOMIC RECOVERY IN BENEFITS

8 The Playing Field

9 Health Care Reform

10 Unemployment Levels

11 Rising Benefit Costs & Decreasing Employee Engagement

12 Threat of Employee Turnover

13 What is the Cause? 59% of employees say more is demanded from them 48% of employees say loss of trust 46% say lack of transparency in communications 40% say being treated unfairly or unethically by employers Source: Deloitte 2010 Ethics & Workplace Survey

14 LinkedIn Poll confirmed Employers worried about engagement and loyalty!

15 Which is the golden ticket?

16 Great Employee Benefits Increase Prductivity Increase Improve Reduce Employee + Absenteeism Add to Total Loyalty Morale Rewards Package

17 CHOOSING THE RIGHT BENEFITS STRATEGY TO SELL IN A RECOVERING ECONOMY

18 Voluntary Benefits Originally: Long-term care Disability Critical illness

19 Evolution of Non-traditional Now: Voluntary Benefits Prepaid legal Pet insurance Wellness programs Purchase programs Employee perks Tuition reimbursement

20 Benefits to You No cost or liability to you or your client Highly desired benefits Stay competitive and differentiate yourself Create goodwill between companies and employees Recurring revenue stream for you

21 Benefits to You Commission Example Annual Voluntary Benefits Commission by Product

22 Benefits to the Employer Help reduce turnover and recruit employees Stay competitive Boost morale Bolster company image Add to compensation packages Minimal cost and risk

23 Benefits to the Employee Reduce financial stress Increased loyalty and engagement Needs are fulfilled Higher satisfaction

24 Employee Satisfaction/Loyalty is Related to Benefits Source: MetLife 9 th Annual Study of Employee Benefits Trends

25 Employers disconnect with employees Factors considered important to loyalty Employers Employees Retirement benefits 38% 64% Voluntary benefits 37% 59% Employees place much higher value on nonhealth and retirement benefits than many employers realize. Even more, 52% of employees say they ARE INTERESTED in more voluntary benefits. Source: MetLife 9 th Annual Study of Employee Benefits Trends

26 How to Sell Voluntary Benefits Understand the employer s benefit focus Offer benefits that meet HR objectives Offer benefits that meet the needs of a diverse workforce

27 Where is the employer s focus?

28 Consultative Approach Meet HR Objectives

29 Who are your benefits for?

30 How to Use Voluntary Benefits: Wellness Example R e w a r d s Millennials: Organize groups to use Apps to track nutrition and exercise Generation X: Discount or employee purchase program for fitness equipment Generation Y: Discounts on Gym Memberships Baby Boomers: Weight Watchers Rewards

31 CASE STUDY

32 Case Study - Healthcare Healthcare Organization Headquartered in Texas One of the largest private employers in south Texas More than 2,000 employees Committed to providing employees with opportunities that promote and protect their financial stability

33 Case Study - Healthcare (cont) Situation Innovative benefits Recruit top talent Not affect the bottom line Not be an administrative strain Result 19% participation Competitive benefits offering Benefits that meet the needs of a diverse workforce Easy to implement and communicate

34 BUT WAIT, THE SELLING ISN T DONE!

35 Communicate, Communicate, Communicate! 55% of employees say they do not find their benefits materials clear or comprehensive! For effective benefits education, employees need at least three ways to learn about their benefits as well as three weeks to process the information before enrollment.

36 How Can You Help? Effective benefits communication drives voluntary success. Participation and revenue dramatically increase when the enrollment includes trained benefits counselors who personalize the decision-making process for employees. A recent study by Eastbridge Consulting Group, Inc. found the average voluntary benefits participation rate for face-to-face enrollments is 46% higher than the participation rate for a self-enrollment.

37 Be an Active Participant Work with your clients to help understand how employees want to be communicated with and develop a communication plan with your clients Use mixed channels for your diverse audience

38 CASE STUDY

39 Case Study - Communication Client 1 Client 2 Purchasing Power handled Prelaunch , Coming Soon flyers, and Launch mailers. First 30 days: 2.1% participation Participation: 158 orders out of 7451 eligibles 158 orders x Average order of $1,255 $198,290 $198,290 x 7% commission: $13, No flyers or s. The broker included program info in the generic welcome packet. First 30 days: 0.17% participation Participation: 15 orders out of 8794 eligibles 15 orders x Average order of $1,255 $ 18,825 $ 18,825 x 7% commission: $1,317.75

40 So, why Voluntary? It s a Win, Win, Win! Employers Employees Brokers

41 Questions? Richard Carrano President o e rcarrano@purchasingpower.com Elizabeth Halkos Chief Marketing Officer o e ehalkos@purchasingpower.com Follow me: Thank You!