TAKE CONTROL OF YOUR EMPLOYEE BENEFIT SPEND
Transcript of TAKE CONTROL OF YOUR EMPLOYEE BENEFIT SPEND
TAKE CONTROL OF YOUR EMPLOYEE BENEFIT SPEND
Utilize The Power of a Collective Voice Without Giving Up Independent Decision Making
1. Lessons from the outside - SMaC
2. Process vs. Product:
– Where have we been?
– Where are we today?
– Where are we going?
3. Edgerton SD Case Study
4. Wrap Up / Questions
TODAY’S AGENDA
SMAC RECIPE = SPECIFIC, METHODICAL, AND CONSISTENT
As the uncertainty, fast-changing, and unforgiving nature of your environment changes, the more SMaC is necessary
• Set of durable operating
practices, create a replicable and consistent success formula
• Clear and concrete, allows enterprise to unify and organize its efforts
• Clear guidance for what to do and what not to do
• Reflects empirical validation and insight
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SOUTHWEST AIRLINES SMAC
1. Remain a short-haul carrier, under two-
hour segments.
2. Utilize the 737 as our primary aircraft for
ten to twelve years.
3. Continued high aircraft utilization and quick
turns, ten minutes in most cases.
4. The passenger is our #1 product. Do not
carry air freight or mail, only small
packages which have high profitability and
low handling costs.
5. Continued low fares and high frequency of
service.
6. Stay out of food services.
7. Keep the family and people feeling in our
service and fun atmosphere aloft. We’re
proud of our employees.
8. Keep it simple.
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SOUTHWEST AIRLINES RESULTS
1. Most passengers flown
2. Most flights on time (arrivals
and departures)
3. Lowest Fares
4. Shortest downtimes for
service
5. Highest employee satisfaction
rating
6. Highest customer satisfaction
rating
*Most efficient airline BY FAR
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“A solid SMaC recipe is the operating code for turning strategic
concepts into reality, a set of practices more enduring than mere
tactics. Tactics change from situation to situation,
whereas SMaC practices can last for decades and
apply across a wide range of circumstances.”
- Jim Collins
$8,000.00
$10,000.00
$12,000.00
$14,000.00
$16,000.00
$18,000.00
$20,000.00
$22,000.00
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Albany Belleville Beloit Turner Brodhead
Clinton Edgerton Evansville Juda
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IDENTIFY THE PROBLEM ENGAGE AT ALL LEVELS
• Graph is a weighted average (25% single and 75% family) of the annual premiums.
• Districts with 2 carriers -the premiums shown above are a weighted average of the two carriers
• For the calendar year plans, cost information is based on calendar year basis.
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FOUNDATION OF STRATEGIC PLANNING KEY CONSIDERATIONS FOR HIGH-LEVEL DECISION-MAKING
• Cost
– Understanding of cost-drivers
– Understanding of how consumers
purchase health services
• Culture
– Understanding of employees’
health benefit needs
– Understanding model for various
employee groups
• Compliance
– Understanding of ACA/Play or Pay
compliance
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COMPLICATED COORDINATION =
UNNECESSARY COSTS AND LACK OF FOCUS
HEATHCARE IS A
FRAGRMENTED MAZE…
How they navigate this maze determines:
• Unnecessary cost
• Delayed diagnosis and treatment
• Frustrated patients and families
• Physicians who lose control of their
patient
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OUR SMAC RECIPE
Have a documented 3-5 year strategy
Have a documented annual plan
that supports long-term
goals
Benchmark against your
peers and best-in-class
performers
Be open to ideas from everywhere
Use data to drive decisions
Communicate strategic
initiatives and results to all
key stakeholders
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SIMPLIFIED PROCESS = UNDERSTANDING.
ENGAGEMENT. ACCOUNTABILITY
Member
Employer
Payer Provider System
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WHAT WE NEED TO HEAR
It’s not about tools or products, it’s
about PROCESS.
FOCUS ON WHAT IS DRIVING THE
COST AND ENGAGE ACCORDINGLY!
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EVOLUTION OF DATA ANALYTICS
No data
on statewide
pool
2002
MedInsight
and other
reports
2015
2016
Manual
benchmarking
2005
Direct data
feeds on
large groups
Today
STATEWIDE
DASHBOARD
Future
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WHAT WE WANTED TO HEAR…
*Average increase of 12%
**Post Act 10 WEA hasn’t had a single year where entire book averaged 12% when not pool rated.
“If we all pool
together we can
maintain status
quo and deliver
the best value”
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BENCHMARKING TOOL / SCORECARD
Provider
Accountability
Employee
Accountability
Employer
Accountability
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EDGERTON SCHOOL DISTRICT CASE STUDY
• Health plan design
• Understanding the organizational
challenge
• Total Compensation Benchmarking -
“Coopetition”
• Results
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1). Post - Act 10 Employee Mobility Trends
– Pre-Act 10: Collective Bargaining Established a “Market”
• Wages and Benefits
– Post-Act 10: Comp Partnership supports Evidence-Based Outcomes
• Wages and Benefits
2). Compensation = Emotions vs. Evidence
– “Fair” Compensation
– Reliable Compensation Data for Measurement
– Outline and Communicate Leadership Strategy
3) “Hard-to-Fill” Identification
– Madison-Area Partnership will Address this Outcome
4) Is your “Comp Plan” keeping Pace?
POST-ACT 10 MARKET AND ORGANIZATIONAL VULNERABILITY: IS YOUR ORGANIZATION AWARE AND WHAT IS YOUR STRATEGY?
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CONTINUUM OF CONSUMER-DIRECTED
HEALTHCARE APPROACHES C
on
su
mer
Dir
ecte
d
More Less Employer Directed
Single
Health Plan
Multiple
Health
Plans*
Multiple
Health
Plans Plus
Account(s)*
(HRA /
FSA)
High Ded
Plan Plus
Account(s)
HSA
Spending
Account(s)
Only
Wages Only
More
Less
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DISTRICT HEALTH PLAN DESIGN
2016-17
• Established a district-
defined contribution:
(S)-$6,619/(F)-$15,645
• Added HSA plan design
as a choice with HRA
• HRA/HSA HMO plan -
base plan design
• Buy-up Options:
– HRA/HSA POS
Plan
MODIFICATIONS AND CHOICES
2017-18
• HSA Plan established
as base plan design
• Buy-up Options:
– HRA HMO Plan
– HRA/HSA POS
Plan
2018-19
• Likely eliminate HRA
plan design
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Maintained benefits that exceed local, regional and national standards
• Total value of plan = Top 3 percentile in State when analyzing quality AND cost.
Continue multi-year planning focused on balancing benefits and compensation
• 3-5 year strategy is tweaked quarterly and reviewed annually
Compared/contrasted best practice for compliance application with 50+ districts
• Coordinated multiple meetings regarding payroll best practice to institute efficient and
compliant payroll applications
Improved staff communication using group meetings with a dozen local districts
• Created effective, compliant and efficient messaging that resonates with employees
• Helped to develop “Focus on Benefits”
Wellness Initiatives
• Examined clinic models and explored statewide initiatives including independent
models and local provider options
EDGERTON SCHOOL DISTRICT RESULTS
• Retain and attract employees
• Everything wages and benefits
*Local evaluation: Total compensation
regional partnership to support
accurate compairsons
FINANCIAL ACCOUNTABILITY PERSONNEL ACCOUNTABILITY
• Weathering the State Budget:
effectively manage a budget
• But not w/out consequence….
– Employee benefit changes
– Deferred capital maintenance
– Mindful budget approach (limit
spending commitments)
• Avoid fiscal cliff (often result in layoffs
and/or wage freezes)
*Local evaluation: What is the impact
of current budget trends (revenue
cap)
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ORGANIZATIONAL CHALLENGES TWO LAYERS OF ACCOUNTABILITY
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LOCAL EVALUATION OF STATE REV. CAPS
PROGRAMS/STAFFING
TRENDS
• Purpose: Evaluation of
programs (student
opportunities) and class
size
• Goal: Retain and
Attract families to the
Edgerton School
District
3 MAIN “PRESSURE POINTS”
BUDGET
ALLOCATIONS
• Purpose: Evaluation of
budget allocations to
support instructional
materials and capital
maintenance
obligations
• Goal: Support and
maintain instructional
materials and capital
maintenance
expectations
COMPENSATION
COMPARISONS
• Purpose: Evaluation of
wage/benefit trends to
support that employees
(in each employee
group) access "fair"
compensation for their
individual role and
responsibility
• Goal: Retain and
attract highly qualified
and/or licensed staff
• Middleton - Cross Plains
• Milton School District
• Monona Grove School District
• Mount Horeb School District
• Oregon School District
• Parkview School District
• Poynette School District
• Portage School District
• Randolph School District
• Reedsburg School District
• River Valley School District
• Sauk Prairie School District
• Stoughton School District
• Sun Prairie School District
• Verona School District
• Waunakee School District
• Whitewater School District
• Wisconsin Heights School District
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MADISON AREA REGIONAL COMPENSATION PARTNERSHIP (36)
• Baraboo School District
• Beaver Dam School District
• Beloit School District
• Beloit Turner School District
• Cambridge School District
• Clinton School District
• Columbus School District
• Deforest School District
• East Troy School District
• Edgerton School District
• Evansville School District
• Fort Atkinson School District
• Jefferson School District
• Lake Mills School District
• Lodi School District
• Madison School District
• Marshall School District
• McFarland School District
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REGIONAL COMPENSATION PARTNERSHIP COMMON CHALLENGES (Fall 2016)
AFFORDABLE COMPENSATION
• Funding to support new comp systems
• Health insurance costs
HOW TO PLACE NEW EMPLOYEES
• “Leapfrogging” effect
DISTRICTS “CHERRY PICKING”
• District-to-district headhunting
HARD-TO-FILL POSITIONS
• How is this determined?
• Are existing employees honored by
this classification?
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REGIONAL COMPENSATION PARTNERSHIP COMMON GOALS (Fall 2016)
COMMUNICATION
• Openly communication compensation
structures
DATA SUBMISSION PRACTICES
• Establish practices that are clear,
consistent and sustainable
COMMITMENT
• Submit expected outcomes
RELATIONSHIPS
• Establish relationships with support
organizations
– Skyward, Forecast5, and
Associated
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PARTNERSHIP WITH SKYWARD
SATISFIES 3 GOALS
• Sustainability
• More timely submission
than 1202 data
• More control over data-
integrity
Identify Data Needs = Reduction/Elimination of Google Surveys
CHALLENGES
• Various Skyward set-
ups by district
• Different employee
titles/group names by
district (role calibration)
DESIRE
• “Norm” data to allow
one set-up for the data-
extraction
• Pull relevant data
reduce (eliminate)
Google surveys
• Consistent format to
support Forecast5
analytics
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1). Role Identification and Coding (Position Type Codes)
– Closing 1202 Reporting Gaps
2). Skyward Data-Mining:
– Role Identification
– Wage Detail
– Experience (Local/Total)
– Educational Attainment
3). Forecast5 Result: Salary/Experience and Hourly-Rate/Experience (and
More!)
ESTABLISHING A SUSTAINABLE SUBMISSION PROCESS: OUR 18 MONTH QUEST…….
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• Review Purpose of Total Compensation Comparisons
– Layer #1: Post-Act 10 Market and Organizational Vulnerability (Employee Mobility)
– Layer #2: Edgerton SD: Operational Referendum Review
• Establish Evidence-Based Comparisons in Edgerton SD
– Bordering School Districts
• Market-Based Wage Comps by Employee Group - Partnership Work
• Health Insurance Competitiveness – Associated Financial
• Outline Strategy for Communication
– Board of Education
– Union Leadership
– Individual Notifications
• Establish Financial Strategy for Market Corrections
– Funding Strategy: 5% to 3% to Market
EDGERTON SD: IMPLEMENTATION GOALS
Reporting through “Employee Group” Buckets: 5% to 3% to Market
• Certified Teaching Staff
• Support Staff
• Occupational Therapy/Physical Therapy
• Maintenance/Custodial
• Technology
• Administrative Office Personnel
• Administration
EGERTON SD: MARKET COMPARISON OUTCOMES
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LEADERSHIP ISN’T EASY…
“A genuine leader is not a
searcher for consensus but a
molder of consensus”
IMPORTANT DISCLOSURES
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