When developing and managing a corporate budget, the second largest expense are after employee salaries and equipment is benefits. From health insurance to additional benefits such as life insurance, dental, and disability income protection, these costs are significant and escalate annually. Typically, these rate increases grow at a proportion substantially higher than most company’s profits. Annual increases of 12%-14% have become expected with increases far higher not unusual.
It is a critical part of expense management to review your benefits plan designs each year looking at the near, mid, and long term. All too often, a company’s benefits structure is well suited to a small company but cannot be maintained when growth occurs and costs increase. Working with a qualified consultant to evaluate your plans and how they integrate with your business and it’s mission will prepare you for the long term.
At The Quantum Group, we have expertise in identifying the most cost effective group benefits available and developing a strategy to manage costs as you grow your business.