A financial services company with 60 employees operating on the east coast was concerned about cost containment and how could they further cut costs.
OEM surveyed the client and found that they:
1. Had substantial costs in payroll, 401k, HR cost per employee, health insurance and workers’ compensation
2. Were not aware of the exact costs for HR and had not kept metrics
3. Were also not capturing the data from payroll
4. Felt “married” to their payroll company and sure costs were competitive
5. Also felt their 401k plan was state of the art
6. Were aware that workers’ compensation and health costs, though quoted often, were rising but unsure as to what to do capture
OEM made several suggestions:
1. Track the dollars they were spending on HR and capture the data to do it
2. Turn over HR to OEM, and save 30% on the transaction and process costs of administering the HR currently performed
3. Add some HR activities to ensure that the client did not increase its risk
4. Turn over payroll to OEM. OEM is able to provide payroll 40% less than the large national firm they were using
5. The company was in need of a WC loss reduction plan– Big savings were available if losses were brought under control. An aggressive safety plan would achieve that change
6. OEM’s TPA and brokers discovered their “untouchable” partially self insured plan benefits was 20 % higher on claims admin costs than the market – An EAP plan would further control costs
7. Take advantage of the OEM HRIS system to measure results
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