Nationwide Construction Services
This client is a provider of comprehensive consulting management, engineering, technical services and construction management with over 2,000 US employees and 7,000 total global employees.
Challenges / needs
In an effort to better position the company for growth and to align its Human Resources strategies with its business units, our client undertook an initiative to expand the influence and role of HR in the management of the company. A major focus of the redesign of the HR function was to have people, systems and programs in place with an “efficient infrastructure” to support the business units. In conjunction with the 2010 planning and to gain a more complete insight into the “current state”, they desired an inventory and in depth review of the existing benefit programs.
Craford quantified current benefit offerings for all U.S. Operations, identifying cost drivers in all health and welfare plans that would result in costs above expected levels. By identifying short term opportunities we were able to achieve immediate savings and develop a framework for a longer term strategy post 2010 renewal and beyond.
Craford’s recommendations included: marketing and moving the stop loss vendor, terminating payments for those who opted out of benefits, modifying plan designs to differentiate the options and costs associated with them, restructuring contributions to grow participation and encourage movement of younger / healthier employees to the lower cost options. By implementing Craford’s recommendations the client was able to mitigate any cost increases for the following year.