Strategic Employee Benefit Planning

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Strategic Employee Benefit Planning

• UW Parkside
• Strategic Human Resource Management Class
• November 19, 2007

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What is Strategy?

• What business are we in?
• Who are our Customers?
• Who are our Competitors?
• For what purposes?

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Strategic Questions

• What does the playing field look like?
• What are our rivals up to?
• What have we done lately?
• What keeps us up at night?
• Given all that, what is our winning move?
• Business Week, Jack and Susie Welch

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More Questions

• Which of our product or service varieties are the
  most distinctive? Most Profitable?
• Which of our Customers are most satisfied?
• Which Customers are most profitable?
• Which of the activities in our value chain are
  the most different or effective?
• Michael Porter HBR 1996

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What does Strategic Planning Look Like?
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Mission Strategy
Strategic Thinking
Long Term Objectives
Integrated Programs
Long-Range Planning
Financial Projections
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Business Strategic Planning

• Internal Analysis
• Strengths/Weaknesses
• Financial Trends
• Products Services
• Capabilities

• External Analysis
• Opportunities/Threats
• Market Segments
• Industry Competition
• Technology

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What is Competition?Who Are Those Folks?

• Primary
• Secondary
• Tertiary

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Who is Driving the Business?
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How Does Strategic HR Benefits Planning Fit?

• Performance Management
• Attract and Retain
• Train and Development
• Support the Culture

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Applying the Model

• What are the mission/vision/values?
• What are the pressing business issues?
• What is the Strategy? Is it working?
• SWOT
• What are the current workforce capabilities?
• What workforce is required for the future?
• How to bridge the gap current vs. future?

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What Strategic Choices Do Companies Make vis
Benefits?

• Starbucks health insurance
• Government pensions health insurance
• WalMart minimum wage
• Investment Banks concierge
• McDonalds teenagers?
• TANSTAFL

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Aligning Rewards Strategy
Develop Business Strategy Align People Strategy Align Total Rewards Assess Financial Impact Implement and Monitor
Mission Vision Values As Is/To Be capabilities Compensation Cost Benefit Analysis Administrative Policies
Business Life Cycle Workforce Demographics Benefits Cost Sharing Training
Driving Forces Employee Value Drivers Development Return on Investment Program Audit
Competitive Strategies Attraction and Retention Tactics Work Environment Future Workforce Changes Follow-up
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Broad Trends

• Health Care
• Retirement Planning
• Education/Development
• Generational Differences
• Employee Ownership

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Health Insurance

• Increasing deductibles
• Network contracts wholesale
• HSA/HRA
• Consumer Tools
• Promoting wellness

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Retirement

• 401(k)
• Auto-enrollment
• Default investments
• 3 Solution
• Education
• Later retirement
• Managing fees

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Development

• Company University
• Tuition reimbursement
• Career planning
• Assignment rotation
• Mentoring?
• Networking

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Generations
Veterans Boomers Gen X Gen Y
Obligation Adventure Challenge Fulfillment
Directive Consensual Why? TBA
Individual Team Entrepreneur Participative
Memo In Person Direct Immediate Virtual Teams
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Employee Ownership

• Options
• SARs
• 401(k) with company stock
• ESOPs

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Mickey MaierSenior Consultant

• 111 E. Kilbourn Ave
• Suite 1600
• Milwaukee WI 53202
• 414-319-4100
• WWW.alpha-investment.com