Consultative, Best Practice Approach Saved Over $58,000
Situation: A fast-growing technology firm was moving into new, diversified markets. Consequently, the company needed to expand their highly skilled workforce while retaining their existing staff as well. Robust but affordable benefits were an essential tool for hiring and keeping the top talent required for growth.
Challenge: Three weeks before their annual renewal, the company’s long-term broker provided quotes from the existing carrier only and not from the remaining carriers in the market. The current carrier’s renewal increase of 30.6% would make it difficult to keep the same benefit levels and more challenging to attract new employees.
Alkali Solutions: Alkali Benefits quickly obtained quotes from other major medical carriers and from several ancillary carriers that specialize in dental, life and disability solutions. We proposed a dual option medical plan which included a Health Savings Account and we bundled all of the ancillary plans under a carrier that offered more robust coverage. In addition, Alkali proposed a discount medical card that enabled employees and their families to spend less out-of-pocket money while they were meeting their annual deductibles.
Positive Outcomes: Besides saving this new client over $58,000 in their first year with Alkali, we provided the company with an enhanced level of benefits. Staff members who chose the Health Savings Account could pay for qualified medical expenses with pre-tax dollars which reduced their taxable income. Also, a new roll-over plan was implemented to increase the annual maximum dental coverage for employees and their dependents. In brief, benefits were expanded but costs were contained.
Today, the company continues to grow and prosper as they move into new markets and new states and as they continue to position themselves as an employer of choice.
Recipe for Recruitment and Retention: Affordable but Robust Benefit Program
Situation: A dynamic DFW internet marketing firm has enjoyed explosive growth, moving from two employees to twenty in just two years. The company’s leaders are considered authorities in the field and are frequent speakers at regional and national conferences. Based on the their reputation and the demand for the company’s expertise, the firm is poised for continued growth for the foreseeable future.
Challenge: Skyrocketing benefit costs have prevented the business from continuing to hire full-time staff. Instead, they were adding contract workers who did not qualify for benefits. In time, company leadership feared the experienced 1099 workforce would accept offers with competitors providing benefits and the loss of this specialized talent would undermine the company’s growth. The goal was to find more affordable benefits and move the contract workers to full-time roles.
Alkali Solutions: While the previous benefit broker had kept the company’s benefits with the same carrier since the firm’s founding, Alkali obtained quotes from every carrier in the market and found far more competitive rates. By changing major medical carriers and adding an innovative Gap plan to underwrite the first $2,000 of in-patient deductible, Alkali found nearly $34,000 in annualized savings. In addition, we implemented a more robust, voluntary dental plan which replaced a plan that provided minimal reimbursements. Employees view this new dental coverage as an enhancement to the company’s benefit program.
Positive Outcomes: Today the firm is poised to recruit their most talented contract workers into full-time positions. By bringing these skilled workers into the company on a full-time basis, productivity and creativity can flourish and the company can meet and exceed client goals and expectations.