Choice of Employee Benefits Consulting Group in Medium-Sized Organizations

1
Choice of Employee Benefits Consulting Group in
Medium-Sized Organizations

• The selection committee of an employee benefits
  consulting group in most medium-sized companies
  tends to follow a common script
• Setting up a small committee
• Researching global consulting firms or local
  insurance brokers
• Creating employee benefits consulting RFP
• Making a selection
• Developing a shortlist of firms for bidding
• The global employee benefits consulting firms
  would point to the best HR consulting firms
  ranking from different organizations, their
  global scale, and numerous archived knowledge
  resources made available in a single click.
• Alternatively, regional or local insurance
  brokers might point to
• their proximity
• their wide insurance carrier relationships
• their ability to shop for the correct group
  health insurance quotes
• their customized service
• Despite the fact that these attributes have been
  the best, they result in overcharging and
  under-serving an important organization group.
• Medium-sized organizations
• Medium and small organizations with health plan
  subscribers ranging from 100 to 5000 would often
  require mismatch when compared to the services,
  expertise, and approach taken by most insurance
  brokers and global consulting firms.

2

• Most medium organizations would search for a
  decent local or regional insurance broker to
  meet the needs of their employee benefits. They
  would not realize that insurance brokers do not
  have the consulting expertise to help them find
  the best set of employee benefits decisions
  suitable to their situations.
• Most medium organizations would continue to waste
  a significant amount every year in completely
  insured plans instead of developing personalized
  self-insured plans. Rest assured that these plans
  would play a considerable role in their
  employees' health management trends along with
  their strategic objectives. Most insurance
  brokers might lack the expertise or the will to
  manage the complexity of employee benefits
  planning aspects to develop the benefit plan's
  best design.
• Alternatively, when medium-sized businesses
  decide that they have outgrown their insurance
  broker's requirements, the best of these
  organized plans would result in the hands of
  global consulting organizations.
• Unfortunately, most of these large organizations
  are not designed to handle smaller firms'
  precise requirements in a personalized way
  without levying a high cost.
• Moreover, most medium-sized companies having fled
  from the global firms have realized some issues
  with the delivery of the services, such as
• top consulting firm getting junior consultants
  only
• no personalization of solutions and strategies
• These have been some of the several issues faced
  by medium-sized businesses when they fail to
  develop strong decision criteria for choosing
  their next employee benefits consulting group.

3
Every medium-sized organization should look
forward to developing an RFP process
acknowledging the bizarre needs of medium-sized
businesses in the area of employee benefits, cost
strategies of healthcare, and insurance
plans. It would be important for them to pay
greater attention to searching for employee
benefits consulting firms having consultants with
expertise, problem-solving skills, and strategic
knowledge. They should work in exclusive firms
to provide personalized and customized solutions
and services required to stay in the
ever-competitive world.