How do we manage costs and incentives for better performance?
Benefits allow you to manage the costs of healthcare programs, savings and pension plans, stock purchase programs and other initiatives. This decision area compares company benefits with those of the competition to keep the people key to your performance management initiatives.
By benchmarking benefits, HR can also determine whether you are aligned with the marketplace. And because investors scrutinize benefits costs for risk and liability, understanding this area helps demonstrate your company’s management acumen.
With the Benefits decision area, you can set planning goals and scorecarding metrics for these performance management elements:
- Benefit costs ($ and %).
- Benefit cost / payroll (%).
- Average benefits per employee ($).
- Benefit market comparison index (#).
- Benefits claimed, approved and paid (# and $).
Most importantly, you can analyze these goals and metrics by a number of dimensions to find the hidden gems underpinning performance in the data:
- Fiscal month / year.
- Benefits program.
- Insurance type and carrier.
- Full time / part time.
- Job grade level.
- Division / department.
Using the Benefits decision area
You set targets based on your goals and metrics in Benefits. You monitor your success by looking at how you measure up against your objectives. Further, you dive into your results to find out more about these elements driving performance management.
- Benefit costs ($): Is there a more cost-effective way to provide competitive benefits? Do we need a different insurer?
- Average benefits per employee ($): Which health benefits are employees using the most and least? Should we restructure our program accordingly?
- Benefit market comparison index (#): Is our stock purchase program competitive for the industry?
