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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Benefits Strategy & Benchmarking Survey• Conducted January - March
2017
• 4,226 participating organizations
• More than 300 questions covering the total rewards spectrum
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Participant breakdown
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Participating industries
Industries that will have a special edition of the U.S. National Report.
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
360-degree integration
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
HUMAN CAPITAL STRATEGY
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Movement toward a multi-year strategy
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
MEDICAL BENEFITS
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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Employer health benefit perceptions
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Shifting cost-control tactics favor telemedicine over employee contribution
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Health plan premium cost trendKey Takeaways:
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
EMPLOYEE WELLBEING
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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Despite being a high priority, many are not confident in their wellbeing strategy
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Top wellness program components
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
EMPLOYEE COMMUNICATIONS
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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
EMPLOYEE ENGAGEMENT
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
LIFE INSURANCE & VOLUNTARY BENEFITS
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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Support for life needs and goals, beyond healthcare
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
ABSENCE MANAGEMENT
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Approach to paid parental leave
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Offering short-term disability benefits increases with the size of the employer
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Two-thirds of employers offer a long-term disability benefit
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
RETIREMENT BENEFITS
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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Non-qualified plans provide added retirement security for key talent
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Employer Healthcare is here to stay…
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
2017 Best-in-Class Benchmarking Analysis for Large Employers
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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.
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
• 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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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.
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
MethodologyMethodology
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
• 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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
• Saving more by spending less• Planning proactively by using data• Emphasizing consumerism and financial protection• Prioritizing production and productivity
Best-in-Class Large Employer:Healthcare Cost Control
Key Themes
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Healthcare Cost Control
Saving More by Spending Less
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Healthcare Cost Control
Planning Proactively by Using Data
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Healthcare Cost Control
Emphasizing Consumerism and Financial Protection
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Healthcare Cost Control
Prioritizing Production and Productivity
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
Best-in-Class Large Employer:Healthcare Cost Control
Profile Group Summary
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
• 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
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
• Viewing benefits as engagement tools and organizational assets
• Focusing on benefits innovation and contribution criteria to control costs
• Emphasizing employee engagement and strategic communication
Best-in-Class Large Employer:Human Resource Management
Key Themes
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Human Resource Management
Viewing Benefits as Engagement Tools and Organizational Assets
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Human Resource Management
Focusing on Benefits Innovation and Contribution Criteria to Control Costs
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Human Resource Management
Focusing on Benefits Innovation and Contribution Criteria to Control Costs
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Human Resource Management
Emphasizing Employee Engagement and Strategic Communication
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best-in-Class Large Employer:Human Resource Management
Emphasizing Employee Engagement and Strategic Communication
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
Best-in-Class Large Employer:Human Resource Management
Profile Group Summary
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best of the Best —Top Performers in Both Profile Groups
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
• Adopting long-term planning and enhanced strategic integration
• Acting on a commitment to inform and engage employees
• Promoting employee wellbeing and accountability
Best of the Best —Top Performers in Both Profile Groups
Key Themes
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best of the Best —Top Performers in Both Profile Groups
Adopting Long-Term Planning and Enhanced Strategic Integration
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best of the Best —Top Performers in Both Profile Groups
Acting on a Commitment to Inform and Engage Employees
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best of the Best —Top Performers in Both Profile Groups
Promoting Employee Wellbeing and Accountability
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
Best of the Best —Top Performers in Both Profile Groups
Promoting Employee Wellbeing and Accountability
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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
Profile Group Summary
Best of the Best —Top Performers in Both Profile Groups
© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM
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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
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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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR LARGE EMPLOYERS
THANK YOUNicole Negvesky, GBDSArea Senior Vice President4350 West Cypress St, Tampa, FL 33607Cell: 571-264-6050Nicole_Negvesky@ajg.com
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