Hottest Voluntary Employee Benefit works well with Self Funding under Health Care Reform
Jan 12, 2012
Many employers are looking for ways to provide better benefits during this period of uncertainty with Health Care Reform. Most consultants agree that Self Funding is an alternative that any employer should seriously consider.
But many employers are delaying the implementation of much needed benefits due to its potential impact on medical costs and plan design.
Employers are already overwhelmed with all the complexity and rules that will change their benefits plans forever. So why would any employer spend time and effort to add an additional voluntary benefit at this time?
Because employees are demanding it and it does not impact negatively or at all with any health care benefits.
It’s called discount shopping.
How do I convince you that discount shopping will be a valued employee benefit? Black Friday 11/25/11 showed a 7 percent increase in both online and offline consumer shopping even during a recession and unemployment over 9 percent. On 12/12/11 more people used the Internet to make last minute purchases than ever before.
Why? Because many online merchants promised free shipping and guaranteed delivery by Christmas if people ordered by 12/12. Its an unprecedented development in a world beset with uncertainty and cost cutting.
But can an employer “cost justify” offering Discount Shopping as a voluntary employee benefit. Wouldn’t that be distracting and disruptive to employee’s productivity?
To Look at a Disruptive Solution?
A disruptive force in social innovation might mean that you consider new Employee benefits and productivity enhancers that might at first glance appear to be “counterintuitive”. After all, many employers are currently restricting and limiting the use of Social Media by its employees. Many employers feel that Social Media is distracting and a “time waster” for employees.
Many employers do not want employees becoming more confused and upset about their benefits. Health Care Reform has both the employees and the employer concerned.
However, a counterintuitive and disruptive solution might be to let employees use Social Media to be more efficient in time-consuming activities so they can spend more time on business. Social Media incorporates the latest technology and communications. Social media might involve emailing, texting, and using Twitter, FaceBook, LinkedIn, and other online communities.
Discount Shopping is what has given www.Groupon.com a market valuation of $17 billion in less than four years. Over 143+ million employees everyday receive a special discount offer from Groupon via email or online. And only 20 percent of these 143 million employees have ever purchased a Groupon discount offer and only about 10 percent have purchased multiple discount offers. So there is a lot of room for growth.
Netscape founder Marc Andreessen stated in the in the Wall Street Journal 9/2011, “Companies like Groupon would eat the retail marketing industry…We are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy."
A Disruptive Innovation is needed. According to Michelle Conlin of the Associated Press on Oct. 21, 2011:”The online deal space was getting jammed with competitors, like Living Social, Amazon.com and Google. They are among the many copycats who are attempting to do what Groupon does. Big merchants like Nordstrom and Ann Taylor also are running their own daily deals online.
At the same time competition is building, consumers are questioning the quality of Groupon's offerings. Those who are disgruntled with Groupon often broadcast it on Yelp, the user review website that rates merchants. There's even something called the "Yelp Effect," named for the way angry customers drive down the merchants' Yelp ratings.”
Besides Groupon, some of the largest sites are www.LivingSocial.com , www.Amazon.com , www.eBay.com , www.FaceBook.com , www.Google.com etc. are all offering online discounts and deals.
However- there is a little known secret in the social media marketplace that you need to be aware of. Only the largest, best available discounts are provided in private websites. If everyone can search a public website like Groupon or Google and find the same discount- then what value does a merchant have in offering such a discount? The value to a merchant to provide a real, ongoing discount is to reward loyal customers or to increase the traffic and sales volume by bringing in new customers.
So if you want to see better discounts and value- you need to join or gain access to a private network.
Where are some examples of a Private Network?
We recommend that an employer contact his consultant or broker and do their own research.
Consulting firms like www.hrconsultinggroup.com have offered solutions on their website for Employers to explore for discounted Shopping. Most of the major benefits providers are using the same merchant networks and systems.
Now I know there will be some consultants out there who might wish to promote his or her own “flavor of the month” but there is one private network that is larger than anyone else.
It’s called https://savvi.accessdevelopment.com/ Check it out by entering your zip code, city, or merchant name you want to shop at and prove it to yourself.
We know that some of the top consultants and brokers have also been quietly offering this type of private network for Discount Shopping. The world’s largest brokerage firm Marsh and their National Practice Leader, Rob Shestack, has been promoting an online tool for employees of Fortune 100 employers to shop and get heavily discounted deals.
As a result, the major benefits providers like www.newbenefits.com, www.affinion.com, www.ebsbenefits.com, www.wellsfargoinsurance.com , www.trilegiant.com etc. all have over 30 million employees covered with an Employee benefit for Discount Shopping.
Why an Employee Benefit for Discount Shopping?
What employer would not want to facilitate and offer its employees a Social Media solution to Discount Shopping? Shopping systems can be provided all at no or little cost to the employer. And there is usually no need for payroll deduction, onsite group meetings, one-on-one enrollments, and no need for “selling”
Don’t believe that a typical employee cannot save tens or even hundreds of dollars each month? www.trilegiant.com has a free online calculator that will let anyone estimate their savings from discount shopping: http://www.greatfunsite.com/content/calculator.html
If you determine your typical employee will save money; and it costs you as the employer nothing or little cost; why would you not offer it?
It might be the best “gift” or benefit enhancement you could ever make. And it will definitely not impact on any impending Health Care Reform issues.
Summary- Using a Disruptive solution like Discount Shopping makes sense.
Contact: Rob J Thurston, President HRCG
(888) 438 9445
About The Author
Rob J. Thurston, President of the HR Consulting Group, has been a national speaker and noted author on HR consulting and systems development since 1981. He has implemented and designed some of the largest selling employee benefits software systems nationwide while part of an international brokerage firm, a national administration firm and while as a consultant.
