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www.mercer.com
Mercer Benefits Solutions
20th April 2010
Godelieve Kroonenberg, Liana AttardSingapore
2Mercer
Agenda – Mercer’s Benefits Solutions
Setting the context– Where do employee benefits fit in?– Mercer’s broad range of benefits offerings– Prospects
Focus on the IPS Benefits Survey– Mercer BenefitsMonitor
From information to consulting - examples of benefits projects– Benefits Prevalence Benchmark– Benefits Valuation– Benefits Consulting
Marketing resources
Setting the context
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Where do benefits fit in?
Labour tensions Shortage of skilled workers
Influx of foreign companiesCompensation woes
How to attract and retain high performance staff with a limited budget? How to motivate and engage employees?
Issues Possible solutions Advantages
Attract and retain employees Good medical and insurance coverage
Work life harmony benefits (flexible working hours)
In-house training
Foreign language classes
Team building activities and company events
Share information on company’s directions, challenges, objectives and expectations to staff
Perquisites
Lower cost
Group buying power
Ensuring health and wellness of employees allowing for greater productivity and motivation
Employee learning and development
Employee engagement
Clear career development plan to retain high performance staff
Personal touch that allows company to build employer brand to attract and retain
Motivate and engage employees
5Mercer
Products to meet every stage of our clients’ needs
Prevalence data, MBM & Peer Cuts
Benchmarking
Valuation
Plan
Design
Clients who want market information
High volume, low returns
Low volume, high returns
Benefits survey participants who want
to better understand and compare their
policies with the market
Benefits survey participants who want
to redesign their benefits policies
Regional Benefits Management clients
TRS clients
ProspectsBroking clients
Mercer Gold clients
Benefits SurveyMercer BenefitsMonitor
7Mercer
About Mercer’s Benefits Survey
Annual comprehensive benefits survey across 15 APAC countries
Access to the benefits survey report is via our online application, Mercer BenefitsMonitor (MBM)
Membership is one year beginning from the date of access
MBM is a rolling database and is updated twice yearly – Jan and July.
Clients are able to submit data outside of the data survey cycle
– Data will then be updated in MBM in the next scheduled upload.
All Mercer.com users have access to MBM via the link http://home.mercer.com/IPS/Prod_Info/benefits/BenefitsMonitor_APAC.asp
2010 Australia/ New Zealand
China All other countries
Data Submission Deadline
26-Apr-10 15-Jun-10
(1st tier ciities)*
10-May-10 (Tian Jin)**
30-Apr-10
Data Delivery Date
25-Jun-10 30-Sep-10 31-Jul-10
2010 2nd Cycle (All countries excluding Australia and New Zealand)
Data Submission Deadline 29-Oct-10
Data Delivery Date 31-Jan-11
Survey Cycle
First Cycle
Second Cycle
* China 1st tier cities – Beijing, Shanghai, Guangzhou and Shenzhen
** With the exception of Tian Jin, there is no fixed schedule for submitting data for China’s second tier cities.
8Mercer
About Mercer BenefitsMonitor a user-centered online tool that offers flexible & intuitive features for benefits reporting and analysis
Advantages of MBM One stop source for market & statutory benefits information from 15 APAC countries
Fast & convenient access to data according to the level of detail required
Run analysis versus standard and custom defined ‘peer groups’ – easily benchmark against competitors of choice
Indefinite number of reports can be generated
9Mercer
MBM: Types of Benefits reports
General, high level reports Trends and statutory updates PDF
Spotlight Report– Provides an overview of key benefits
practice trends in the general market. – Represents all industries– Statutory overview
Benefits Prevalence Report (BPR)– Side by side comparison of your
organization’s benefits policies against aggregated statistics of selected peer groups
Detailed Benchmark Report (DBR)– Provides exact details of the benefit plans
of a custom peer group of choice– Side by side comparison of benefits
provided by different employers
Specific, detailed reports Aggregated or side by side
comparison of benefits plans PDF and/or Excel
BPR peer group limit: min.12, no limit. DBR peer group limit: min. 8, max 25
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MBM: Other features to look out for!
Global Benefits Legislative Updates (GBLU)– Updated monthly
Benefits Plans Around the World (BPAW)– Updated twice yearly
Benefits Newsletter– Updated quarterly
Snapshot survey / Quick Poll results
11Mercer
MBM: Subscription packages and pricing
Standard Subscription
This subscription package includes:– Spotlight on Benefits Report– Access to aggregated reports (BPR)
of ‘All Industries’ group report– One password to Mercer
BenefitsMonitorTM for 12-month access
Premium Subscription
This subscription package includes:– Spotlight on Benefits Report– Access to aggregated reports (BPR)
of ‘All Industries’ group and one available industry cut
– Access to aggregated (BPR) OR side by side (DBR) reports of 1 customized peer group (approved by Mercer)
– One password to Mercer BenefitsMonitorTM for 12-month access
• Additional customized peer groups will be charged at USD 600 per peer group
• Additional passwords will be charged at USD 300 per password •Local clients: 1 password
•Regional clients: 1 access per country subscribed and one regional access
•Global clients: unlimited access
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Pricing
Specific Sections Benefits non-participants
Working Conditions
Insurance benefits
Retirement benefits
600 each
Leave benefits
Vehicle benefits
800 each
Health benefits 1200
MBM (full benefits reports) Standard Premium
TRS Non-TRS TRS Non-TRS
Australia or New Zealand 1000 1000 1750 1750
All other countries 1000 1250 1750 2500
Spotlight on Benefits Benefits non-participants
Australia 1100
New Zealand 670
All other countries 800
5% discounts apply for purchase of MBM in multiple countries or purchase of more than 3 benefits sections.
Cost of peer group is USD 600 regardless of participation in benefits survey
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Demo video
Benefits projectsFrom information to consulting
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Benefits project opportunities / winsBenefits benchmarking Data collected can be readily used for the following projects:
– Benchmarking - Valuation– Harmonization - Employee benefits design review
Example 1
Company: Canon
Objectives: To conduct both internal and external benchmark for 9 countries
Why we won:
• Large benefits database across 15 countries
• Comprehensive benefits reports that typically cover at least 90% of clients’ queries
• Advanced technology (MBM) that allows for quick turnaround time
16Mercer
Benefits project opportunities / winsBenefits valuation
Example 2
Company: HP
Objectives: Wanted to calculate the value of their benefits packages in Malaysia and Singapore
Why we won:
• Technical expertise
• Large database
• Globally recognized methodology
• Advanced technology that allows for quick turnaround time.
New valuation product/service
will be officially launched in August
17Mercer
Benefits project opportunitiesBenefits Plan Design
Review current programs to identify if they are value for money and to determine where immediate cost savings can be achieved through cost-sharing, eligibility, coverage and scope changes.
Benchmark plans to ensure that they are not more generous than they need to be and remove coverage for luxury items.
Consider more cost-sharing or limits for inpatient and outpatient expenses to help save money while providing employees with a financial incentive to manage their own health care costs. Evaluate harmonization of benefits where multiple operations/entities exist in one country with different benefit designs.
Review local plan design to ensure it is in line with your regional benefit strategy. Cost savings are available when inconsistencies are removed and benefits are restructured to a more sustainable level.
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Conduct an analysis on the key benefit plan cost drivers to identify the underlying root cause.
Understand how to use your health management program to contain costs, improve productivity and impact positively on talent management.
Put your current health management measures under the microscope to determine the gaps and inefficiencies in your current program.
Determine the health risks in your employee population.
Assess the ability of your health and wellness measures to cope with those risks.
Create an integrated health and wellness program that addresses the main risks in your employee population.
Benefits project opportunitiesHealth Risk Management
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Benefits project opportunities / winsCase Study
A US based multinational with a large operation in India was facing rising health plan cost increases of 45% per year with little incentive for employees to manage costs. Additionally there were significant gaps in coverage based on employee needs/health risk; however given the economic down turn there was no budget to add new components. Mercer developed and is implementing a 3 year plan with short, medium and long term cost containment/health risk management elements which will generate immediate savings of USD$1,000,000. Mercer was able to achieve this by:
– Facilitating the development of an integrated benefit and health strategy;– Identifying spend that did not support organisational objectives;– Redesigning the employee benefit program to refocus monies/resources from
treatment to prevention through plan design– Introducing and implementing a positive health program– Identifying a strategy to make employees smarter consumers of health care– Identifying ROI metrics
Marketing Resources
21Mercer
Sites where you can find benefits sales information
Mercer Link
http://home.mercer.com/IPS/Prod_Info/benefits/BenefitsMonitor_APAC.asp
Contains marketing materials for consultants and link to access MBM APAC
iMercer
http://www.imercer.com/content/asia/mbm.aspx
Information on MBM
MBM APAC link for clients access
22Mercer
Marketing Resources
– Benefits Cheat sheet (New!)– Compendium of Benefits survey by country or Asia Pacific (with participant list, table of
contents etc) (New!)– Benefits and MBM Brochure– MBM Flyer– Powerpoint presentation on Introducing MBM– PDF of ‘Introducing MBM’– Sample reports– Launch of MBM PPT with screenshots (for events)– MBM Clip/Demo – Point of View articles– Press releases– Mercerlink
Consultant User Guide Client User Guide Client and Consultant FAQs
– Training– Webinars– Guide to filling DCKs
Q & A session
Appendix
25Mercer
Regional Benefits Strategy & Plan Design
Benefit Plan ObjectivesFor Design, Delivery, Financing and Risk
Management
Governance Structure/ProcessesIncluding Roles and Responsibilities / Accountability / Decision Making (Local vs. Regional vs. Global) – “Rules of the Road”
Design(e.g., positioning, core
benefits)
Delivery(e.g., insurer/vendor
relationships, communication, administration)
Financial(e.g., multinational
pooling, cost containment, insurance
vs. self insurance)
Risk Management (e.g., health, statutory
and accounting requirements)
Tactical
Strategic
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Plan DesignCost containment - possible solutions
Health Management Solutions
Financing Solutions
Delivery Solutions
Design Solutions
Flexible benefits and defined contribution structures
Coverage and benefits scope
Cost sharing
Individual worksite programs
Eligibility
Insurance pricing and negotiations
Health vendor pricing and negotiations
Self insurance and profit sharing
Multinational pooling and use of captives
Cash flow management
Administration outsourcing
Regional broking
Vendor management
Claims management
Consumerism education
Wellness
Health risk management
Disease management
High cost case management
Absence management
Cost Shifting (to Employees)
Cost Management
27Mercer
Regional Discount Structure
DISCOUNT is based upon total spend value ($) & is an incremental discount % based on a 'tier' system – not limited to benefits alone and is applicable for centralized billing only
Total Spend Value (USD) Discount (%)
< 5,000 0%
5,001-10,000 5% saving on $5,000
10,001 -20,000 10% saving on the next $10,000 increment
20,001 – 50,000 15% saving on the next $30,000 increment
50,001 – 100,000 20% saving on the next $50,000 increment
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Regional Discount Structure: An Example
Breakdown of Total Spend value (USD 30,000) Discount (USD)
$5,000 0
$5,000 =5% * 5,000 = 250
$10,000 = 10% * 10,000= 1,000
$10,000 = 15%*10,000= 1,500
Total spend value = USD 30,000 Total Discount = USD 2,750