Strategic Employee Benefit Planning

UW Parkside

Strategic Human Resource Management Class

November 19, 2007

What is Strategy?

• What business are we in?

• Who are our Customers?

• Who are our Competitors?

• For what purposes?

Strategic Questions

• What does the playing field look like?

• What are our rivals up to?

• What have we done lately?

• What keeps us up at night?

• Given all that, what is our winning move?

• Business Week, Jack and Susie Welch

More Questions

• Which of our product or service varieties are the most distinctive? Most Profitable?

• Which of our Customers are most satisfied?

• Which Customers are most profitable?

• Which of the activities in our value chain are the most different or effective?

• Michael Porter HBR 1996

What does Strategic Planning Look Like?

MissionStrategy

Long Term Objectives

Integrated Programs

Financial Projections

Strategic Thinking

Long-Range Planning

Business Strategic Planning

• Internal Analysis• Strengths/Weaknesses• Financial Trends• Products & Services• Capabilities

• External Analysis• Opportunities/Threats• Market Segments• Industry &

Competition• Technology

What is Competition?Who Are Those Folks?

• Primary

• Secondary

• Tertiary

Who is Driving the Business?

How Does Strategic HR & Benefits Planning Fit?

• Performance Management

• Attract and Retain

• Train and Development

• Support the Culture

Applying the Model

• What are the mission/vision/values?

• What are the pressing business issues?

• What is the Strategy? Is it working?

• SWOT

• What are the current workforce capabilities?

• What workforce is required for the future?

• How to bridge the gap: current vs. future?

What Strategic Choices Do Companies Make vis Benefits?

• Starbucks – health insurance

• Government – pensions & health insurance

• WalMart – minimum wage

• Investment Banks – concierge

• McDonalds – teenagers?

• TANSTAFL

Aligning Rewards & Strategy

Develop Business Strategy

Align People

Strategy

Align Total Rewards

Assess Financial Impact

Implement and

MonitorMission Vision Values

As Is/To Be capabilities

Compensation Cost Benefit Analysis

Administrative Policies

Business Life Cycle

Workforce Demographics

Benefits Cost Sharing Training

Driving Forces Employee Value Drivers

Development Return on Investment

Program Audit

Competitive Strategies

Attraction and Retention Tactics

Work Environment

Future Workforce Changes

Follow-up

Broad Trends

• Health Care

• Retirement Planning

• Education/Development

• Generational Differences

• Employee Ownership

Health Insurance

• Increasing deductibles

• Network contracts – wholesale

• HSA/HRA

• Consumer Tools

• Promoting wellness

Retirement

• 401(k)

• Auto-enrollment

• Default investments

• 3% Solution

• Education

• Later retirement

• Managing fees

Development

• Company University

• Tuition reimbursement

• Career planning

• Assignment rotation

• Mentoring?

• Networking

Generations

Veterans Boomers Gen X Gen Y

Obligation Adventure Challenge Fulfillment

Directive Consensual Why? TBA

Individual Team Entrepreneur Participative

Memo In Person Direct Immediate

Virtual Teams

Employee Ownership

• Options

• SARs

• 401(k) with company stock

• ESOPs

Mickey MaierSenior Consultant

111 E. Kilbourn Ave

Suite 1600

Milwaukee WI 53202

414-319-4100

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