Ontario Wholesale Business gets Competitive Edge with new Benefits Program
This medium-sized Canadian wholesale company provides products that are undifferentiated in the marketplace, so in order to be competitive, they focus on providing exceptional service to their customers. Because their employees are the core of their business they need to keep them happy through incentive-based learning programs and taking care of their overall wellbeing through a meaningful benefits program.
As a privately help company in a competitive marketplace, not only do they need to invest in their employees, they need to ensure the costs incurred for their benefits program is sustainable over time.
Reduce the immediate costs of their benefits plan. The cost of drugs ballooned within their program. Top 5 drugs claimed by less than 2% of their employees cost this business over $400,000.
- This Canadian business's paramedical claims were double the industry average.
- The cost of their benefits program was becoming unaffordable.
Maintain a competitive program that is sustainable over time. Since employees are the core of this business; they want to continue to offer a robust benefits program that encompasses the company’s culture.
How NextGen Helped Them
NextGen advisors were able to implement a preferred drug program that streamlined this business's healthcare supply chain. This was able to save this client over $360,000 in pooled drug claims while maintaining the employee benefits coverage their staff required.
The plan provided for this business reduced its overall costs. Health claims were reduced by 40% while administrative expenses to running this benefits program were reduced by 60%. Not only were the businesses costs reduced, but their renewals are also consistently below the industry average.
In the end, the solutions provided by NextGen Benefits provided this client with a comprehensive competitive benefits program. Advisors benchmarked this business's new benefits program against the competition to make sure they were not only able to compete by having a low cost, but also to provide a higher level of benefits to their employees.
With employees happy about their benefits plans and management reducing overall costs, this business was able to compete through both customer service and pricing.