This document discusses improving employee benefits programs. It recommends asking three key sources for information: 1) Company leadership to define the corporate benefits philosophy; 2) Competitors to benchmark benefits; 3) Employees to understand their needs and priorities. Combining this information will help structure and revamp the benefits package in line with company goals. It also emphasizes the importance of prompt claim reporting to reduce costs, through early treatment, case management, and return to work programs.

1. STAFFING Q3 2008
AssuranceEdge
Helping Today’s Professionals Stay On Top of the Insurance Marketplace
Reach New Heights With Your Employee
Benefits Program
Employee benefits programs of winning companies
don’t come off the shelf. They are strategically tailored
for maximum impact. Wondering how to improve your
company’s benefits program? Seeking direction from 3
key sources will lead you to your answer.
First, ask your company’s leadership team
That may be you. It may be the person you report to,
or the team around you. Typically it includes the CEO,
CFO, COO, top HR professional, head of sales - or the
people that perform those roles at your company.
What you want from this group is to define your corporate philosophy as it relates to employee benefits.
For example, ask these questions: How do benefits fit into attracting and retaining your employees? What
business factors could be impacting your ability to devote dollars to benefits? Are you a paternalistic culture or
one that empowers independence and choice? Answering these questions will drive many of your benefit and
plan design decisions.
Second, ask your competitors
Who do you compete with for talent? Realize this is not necessarily who you compete with for your products
or services. Look to benchmarking data to help get a feel for the competitive landscape.
Many employers like to compare how their employee benefits stack up in the marketplace, but then they
simply use that information to move to the average. If your goal is to have an “above average” benefits package,
you must first define what that means and then see where you fall in the spectrum. Benchmarking may confirm
you are exactly where you want to be, or it may suggest needed changes to meet your goals.
Finally, ask your employees
If you ask most employees how their benefits programs could be improved, they will quickly respond with,
“Better coverage and lower health insurance costs!” Keep in mind, the terms each employee uses to describe
their preferences are very individual. What does “better coverage” mean? To one employee it means a network
that includes their preferred doctor. To another it means additional wellness benefits.
What about “lower health insurance costs”? That term is self-explanatory and consistent for everyone, right?
Wrong. Again, it can be relative in terms of what employees are willing to trade in order to reduce costs. Some
are willing to limit their provider choices for a premium reduction. Others prefer a higher deductible or out of
pocket maximum if it translates to a bit more cash in their bi-weekly paycheck. These are all areas you may be
able to improve upon in your current medical plan.
The key is to dig beyond the surface answers you may initially receive. A survey designed to get your
employees to prioritize their needs and provide specific answers will prove invaluable in helping you make
decisions on the numerous parameters of your employee benefits offerings.
Once you combine the information from your leadership team, competitive
environment, and employees, the path to structuring and revamping your
benefits package should start to come clear.
The bottom line is to use your company’s strategic benefits philosophy to
drive your decisions, and leverage benchmarking data and employee feedback
to validate whether or not your choices are in synch with your goals.

2. Q3 2008
Prompt Claim Reporting Will Save
You Money
Courtesy of: Michigan Association of Staffing Services
Claim reporting
best practices
Did you know that lag time – the amount of time
between the date a loss occurs and the date it is Employees must
reported to the insurance company has been proven to be informed of
have a direct financial impact on claim severity? Costs the importance of
can rise between 19% and 78% per late reported claim reporting injuries
depending on the type of claim being reported*. to their supervisors
Studies by Proficient Health and Rehabilitation on time. In turn,
Services, Inc., in Wheaton, Ill., found that delayed supervisors should
treatment for worker injuries can result in greater costs. provide and
Early case management through time accountability and assist outside medical care, if needed, as well as escort
responsibility of all involved, including the employer, employees to the medical provider. Supervisors should
the employee, the payer and the providers, leads to just immediately begin investigating the accident.
the opposite. The employer should make sure to identify a medical
When an employee seeks his or her own medical provider that is familiar with the employer’s operations
treatment, you end up losing control of the medical and specializes in occupational health. The chosen
costs. At this point you may end up paying for medical provider should provide timely and quality care.
unnecessary, inappropriate or excessive medical
Follow-up after reporting a claim
procedures. Also, increased costs can be caused by
The employer should be committed to returning
people who are more likely to seek legal counsel if they
employees back to work as soon as medically possible in
feel they are not adequately being taken care of, even
order to minimize lost time. The medical provider should
after they have been laid off from work.
be aware of the transitional duty program and provide
the company with specific work restrictions after treating
the injured employee.
Assurance University The employer should designate one person (or more
if there is a large amount of claims activity) to coordinate
In this rapidly changing insurance environment,
all claims management activity and to stay in constant
Assurance recognizes the value in keeping current
contact with employees who are out of work. They
on topics and new ideas critical to a company’s
should also communicate with physicians and work
success and profitability. Assurance provides many
closely with the insurer.
educational seminars throughout the year to support
The employer should monitor workers’ compensation
this philosophy.
losses, track incidents and lost days and share statistics
The following seminars are currently being offered: with managers, supervisors and employees.
With prompt reporting, diligent, professional and
• Low to No Cost Wellness Ideas
compassionate treatment, medical management and an
September 23, 2008 – Elk Grove Village, IL
emphasis on returning the employee to work, total claim
Improve your bottom line and increase the
costs can be reduced.
productivity of your employees by managing a
wellness program on little to no budget.
* Figures from Travelers’ National Accounts program
• Identity Theft: A Growing Exposure for
Businesses, As Well As Individuals
October 21, 2008 – Schaumburg, IL At Assurance, we have built our reputation on
Companies, in virtually all industries, now face earning our client’s trust and confidence through
significant regulatory and liability risks related excellence in every interaction. Independent since
to identity theft. our inception in 1961, Assurance is ranked by
Business Insurance magazine among the top 75
To sign up for one of these seminars visit us at
insurance brokerages in the country.
www.assuranceagency.com/seminars.
For further information, please contact your Assurance representative at 847.463.7877,
or e-mail staffing@assuranceagency.com.
Assurance Agency, Ltd. • One Century Centre • 1750 East Golf Road • Schaumburg, Illinois 60173
phone 847.797.5700 • fax 847.440.9130 • www.assuranceagency.com