Aon Global Benefits Study

Transcription

1 Aon Global Benefits Study Insights Presentation April 2015 Risk. Reinsurance. Human Resources.

2 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities / challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 1

3 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities / challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 2

4 1. Introduction to the Survey Participant Profile: Industry and Location Participants by industry (n=184) Participants by country (n=184) Finance 21% Retail 12% UK 42% Pharma 11% Other 12% CH 8% NL 13% 71 participants based in the UK 10 of whom are attending today 3

5 1. Introduction to the Survey Participant Profile: Role and Remit Participants by role (n=184) Number of countries in role remit (n=184) 60% 50% % % % % 2-5 0% Global Regional Cluster 0% 10% 20% 30% 40% Similar ratios for the UK participants 4

6 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities / challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 5

7 2. Where We Are Now Benefits Strategy How many participants utilize? 100% How many participants with a global benefits strategy don t.. 100% 80% 80% 60% 63% 60% 60% 40% 20% 41% 40% 20% 37% 20% 27% 0% Regular benefits benchmarking Documented global benefits strategy Documented health and wellbeing strategy 0% Have a global benefits inventory Ask benefits questions in employee surveys Carry out regular benchmarking Questions over the effectiveness of the global benefits strategy if further activities not pursued 6

8 2. Where We Are Now Benefits Financing How many companies have a multinational pooling or captive financing arrangement? Is reviewing or implementing a pooling strategy a priority for you? 100% 80% Don't have a pool 8% 60% 49% 40% 20% 16% Already have a pool 34% 0% Multinational pooling Captive funding for insured benefits 0% 10% 20% 30% 40% A clear market trend towards organizations investigating captive and other financing options Very few companies looking to implement new pools standard pooling has had its day? 7

9 2. Where We Are Now Benefits Governance How many participants utilize? How many participants? 100% 100% 80% 80% 60% 48% 47% 60% 56% 40% 40% 20% 20% 5% 0% A global benefits consulting relationship A global inventory of benefits data 0% Don't have a global consultant but it is a priority Surprising low number of participants looking to establish global benefits partnerships Don't have a global benefits database but reviewing benefits is a priority Very high number of clients looking to review benefits without a robust database as a starting point 8

10 2. Where We Are Now Employee Perception of Benefits How many participants How many participants see the following as priorities 100% 80% 76% Review benefits communication material 29% 60% 40% 43% Implementing flex plans around the world 27% 20% 0% Ask employee benefits questions in engagement studies Have an online benefits or Total Reward portal Launching Total Rewards or benefits portals 21% 0% 10% 20% 30% 40% Benefits often asked about in surveys but employees dissatisfied with follow-up. Poor employee communication often reduces perceived value of benefits 9

11 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities/challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 10

12 3. Priorities/Challenges for 2015/16 Priorities All respondents Global Regional Reviewing benefits in key countries Setting a global benefits strategy Reviewing or implementing a pooling strategy Implementing a health and wellbeing strategy Reviewing employee communication materials Implementing flexible benefits in 1 or more countries Launching a total rewards portal Implementing a global benefits mandate The key priorities for multinationals are strategic in nature Recent trends towards global flex and total reward potentially waning Management of pools typically the responsibility of regional rather than global teams 11

13 3. Priorities/Challenges for 2015/16 Challenges All respondents Global Regional Time consuming benefits administration Lack of information on benefit programs Dealing with rising healthcare costs Lack of budget for priority projects Benefit program compliance issues Employee dissatisfaction with benefits Poor third party service levels Benefits administration an increasing drag on global benefits professionals Understanding existing programs a key step before focusing on priority projects European state health systems reducing the impact of rising health costs 12

14 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities / challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 13

15 4. Decision Making Metrics Where Are Decisions Being Made? What is the balance of decision making between global and local stakeholders? Benefits administration Benefits communications Choosing benefit providers Confirming renewal terms Benchmark groups set globally Introducing new benefits Changing benefits Setting benchmark companies Benefits administration and communication managed locally 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally local Mainly local Joint decision Mainly global Totally global 14

16 4. Decision Making Metrics Where Are Decisions Being Made? Distribution of the overall decision making balance 45% 40% 35% 30% 25% 20% 15% 10% 5% Key statistic Numeric Interpretation Median 2.43 Mainly local Average 2.62 Local / joint Upper quartile 3.29 Joint Lower quartile 1.86 Mainly local Despite clear centralization trends at multinationals the majority of benefit decisions still being driven by local stakeholders 0% Totally local Mainly local Joint decision Mainly global Totally global 15

17 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities / challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 16

18 5. Benefits Management Efficiency Metrics How Effectively Are Benefits Being Managed? How effective are the following key areas of benefit plan operations? Remarketing process The financing of benefits Decision making process Benefits not perceived well or meeting employee needs Benefits communication material Alignment with benefit strategy Accurate employee perception Benefits meeting employee needs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally ineffective Somewhat ineffective Fit for purpose Pretty effective Very effective Very few extreme responses no major issues but many improvement areas 17

19 5. Benefits Management Efficiency Metrics How effectively are plans being managed? Distribution of the overall effectiveness of benefit operations 70% Key statistic Numeric Interpretation 60% Median 3.00 Fit for purpose 50% Average 3.07 Fit for purpose 40% Upper quartile 3.43 Fit for purpose Lower quartile 2.71 Fit for purpose 30% 20% The results show a clear lack of excellence in the management of plans. 10% 0% Totally ineffective Somewhat ineffective Fit for purpose Pretty effective Very effective Most organizations adopting a just enough is good enough attitude 18

20 Aon Global Benefits Survey 2015 Agenda 1. Introduction to the survey 2. Where we are now 3. Priorities / challenges for 2015/16 4. Decision making metrics 5. Benefits management efficiency metrics 6. Conclusions 19

21 6. Aon Global Benefits Study 2015 Key Conclusions 1. The market trend of increasing centralization is ahead of the operational reality. The decision making at most multinationals has heavy involvement from local stakeholders 2. There are clear opportnities in all areas of benefit plan management to improve efficiencies and drive savings 3. Benefit administration issues are a resource drain and this is likely to get worse as the trend of centralization continues 4. Most organizations still reporting a lack of centrally held benefits information which is a real barrier to driving strategic priorities 5. The popularity of multinational pooling looks to have peaked with organizations looking to Captives and other financing initiatives to improve efficiencies 20

22 Aon Global Benefits Study Insights Presentation April 2015 Risk. Reinsurance. Human Resources.