Module 1 - Strategic Assessment Flashcards
What are the six steps to strategic planning and design of health and welfare benefits?
- Review strategies
- Conduct gap analysis
- Select and design benefits plans
- Determine costing
- Select funding method
- management approval and implementation
Employers typically engage in three types of competitive strategy
What are the three types of strategy?
- Low cost leadership
- Differentiation
- focusers (also known as market segmentation)
Define low-cost leadership
Being the most efficient low-cost leader in an industry
Relies on economies of scale to produce high volumes at low-cost
Profit margins narrow so accompany must sell a lot of goods
Define differentiation in regard to strategic planning
The company seeks to be unique and it’s industry along with the dimensions that are widely valued by its buyers
The company must have a unique service or product
Making a product or service that’s unique and difficult to duplicate by other companies
Define focusers or market segmentation
The company carves out on unique market niche
They offer a product or service that their customers cannot get from general competitors
Looking at markets and focusing on market segments that other companies have not yet tapped
Business strategy drives HR strategy which drives total rewards strategy which drives benefits strategy
Define business strategy
The business strategy is derived from the vision and mission of the organization. It’s a companies broad plan for competitively positioning is products or services with the intent to accomplish or support the companies mission.
List three examples of business strategies
- Customer intimacy
Hallmarks of a customer intimacy focus can include bonding with targeted customers, exceeding customer expectations and building customer loyalty - Operational excellence
Includes low price, quality, dependability, and ease of purchase - Product service leadership (innovation)
Includes products that expand performance boundaries, technological, breakthroughs, better ideas or products that are quick to market
Define total rewards
 all of the tools that an employer has to attract, motivate, engage, and retain talent
What are the four buckets of total rewards and employer can use to put together an offering to employees
1 compensation
Well-being - Maintaining a positive culture
Benefits - Health and welfare (medical, dental, vision, life, and disability, retirement)
Development - Career paths, tuition, reimbursement, conferences, industry, events
Recognition - Various recognition and rewards
Define line of sight in regard to strategic planning and design of health and welfare plans
Line of sight means that each level of strategic development Cascades down from the business strategy…
Business strategy
HR strategy
Total rewards strategy
Benefit strategy
Five types of employee benefits
Health and welfare
Well-being
Paid time not working
Perks
Retirement
How does the benefit strategy impact the business strategy?
- Improves employee, achievement of organizational performance goals
- Improves employee engagement and morale to reduce turnover and encourage innovation
- Supports the financial success of the employer by checking and controlling costs
What should the goals of a benefits strategy be?
Align benefits with other organizational strategies
Reflects all interests (represents all stakeholders)
Allows fluidity - Assess an update annually within 24 to 36 months planning horizon
What factors influence, benefits strategy design from an employer perspective
Corporate factors such as vision, mission, and goals
Corporate culture
HR factors - budget attraction and retention employee productivity
HR management - Legal requirements, administrative requirements, reporting and governmental, contracts, and courts, unions
Workforce demographics : younger or older, single or family, male or female, ethnic diversity…
Organizational change : Merger and acquisition, new management, corporate, reorganization, new business strategy
Risk transfer : Self insured or fully insured or somewhere in the middle
What factors impact benefits design from an employee perspective?
Benefits demand; choice and flexibility and plan
Perceived benefits value
Benefits entitlement
Risk of reduced loyalty
Changing job perspectives : jobs for life (paternalistic) vs jobs for a period of time. ( empowerment.)
