Employee Resource Program

Although the discussion of “supplemental benefits” often centers on the purchase of term life or disability insurance, AMZA Management & Consulting is changing the definition and focus of supplementing employee benefits.  The trend identified prior to 2007 was the change in the employee base, spending patterns, and the negative impact on the economy.  As the predicted changes became reality, employers are challenged by tighter budgets, reducing the workforce, and redefining their product or service or demographic market.  The bottom line has become a focus for most employers, causing them to consider new and additional benefits to keep their workforce.  Non-traditional concepts have been introduced to health care in the form of massage therapy, acupuncture, and other holistic treatments.  These options were never part of the health care programs of our parents.

Employees are facing decisions and challenges affecting their finances, their health, and their family dynamics.  The tools necessary to effectively address these new concerns are not often readily available.  Forward thinking employers are seeking to provide these tools through employee assistance programs, which are often connected to a health care provider.  The effectiveness of these programs is impacted by the quality of the professional referrals and the cost of maintaining the service.  These traditional programs have been delayed in providing the adequate adjustments in their servicing of their client base.

AMZA Management & Consulting has eliminated the referral process of these programs by structuring an Employment Resource Program (ERP) providing direct services in the areas of legal, financial, family and health.  The ERP offers flexibility to the employer groups and the employee participants through low cost servicing, payment plans, and a network of service providers skilled in various industries and fields. Membership fees range from as low as $5.00 per month to $50.00 per month for each member participant.  Employer groups include the member employee and their household members.  Additional family members may be included in the employer group. For additional information contact AMZA Management & Consulting at 866-408-AMZA (2692).

The following article is reproduced from InsuranceNewsNet.com.

New Study: Supplemental Employee Benefits are the Coming Trend, by Mike Simonds June 2007

The rapidly changing employee benefits market is creating a number of challenges for your employer clients, particularly as health care costs continue to squeeze benefits budgets. In addition, the dynamics of the aging workforce, shifting workplace demographics and the coming predicted labor shortage are all putting added strains on employers as they try to design benefits programs that will help them remain competitive in the coming years.

The UnumProvident 2006 Buyers Study examines the purchasing patterns of more than 100,000 employers nationwide, shedding light on where the benefits market is headed and helping employers understand the trends that are shaping the benefits of the future. Some of the key implications of the study are:

• A one-size-fits-all benefits program is no longer viable, given today’s diverse workforce.
• Increased competition to attract the best employees requires employers to offer a competitive benefits package with a wide choice of coverages.
• Supplemental or ancillary benefits let employers offer a robust benefits program while keeping costs under control.
• Women outpace men as purchasers of supplemental products, and employees age 30 to 49 are the most common purchasers of these benefits.

The Current Climate

The study clearly shows that flexibility and choice in employee benefits is a must if employers want to meet the needs of today’s diverse workforce. No longer is there a “typical” employee to whom employers can target benefits. Traditional family-oriented benefits were previously the norm, but now almost half the nation’s employees are unmarried, and this percentage is likely to grow. In addition, there is a rising number of couples without children.  The insurance needs of these employees are strikingly different from those with families.

The aging workforce presents unique challenges. According to the U.S. Census, the group of workers age 55 to 64 is growing at 46% – the highest rate of any group.  This older labor pool has consequences for an employer’s benefit program, particularly in the areas of health insurance and disability income protection. For example, disability claims from older workers are often due to illness, and claims durations are longer. In terms of cost, the greatest impact will be on health care premiums, and long-term disability insurance rates could increase as well.

Compounding the problem is the fact that employers face a tight labor market in the coming years. In fact, approximately 60% of HR executives recently surveyed said they see signs of a talent shortage, and almost all of them expect it to happen before 2010.  To attract the most qualified employees, it will be more important than ever for employers to offer a competitive benefits package with a wide choice of insurance coverages.

Increasing Heath Care Costs

While it’s certainly nothing new, the rising cost of health care continues to take a toll on businesses and the U.S. economy. In 2005, health expenditures represented 16% of the Gross Domestic Product, and health care spending is expected to reach $4 trillion and 20% of the GDP by 2015. 

These escalating costs mean employers must seek new options for funding benefits and look for ways to help employees pay for uncovered out-of-pocket medical expenses. In one study, more than half of the employees surveyed reported increased medical expenses during the previous 12 months.  Of these additional expenses, 52% was due to increased out-of-pocket expenses.

Clearly, the business environment is going to change over the coming decades as workforce, cost and coverage trends continue to challenge employers. Meeting this challenge will require a broad range of benefit offerings that work well together, along with funding flexibility and increased support for the employees who will be choosing their benefits.

The Shift to Supplemental Plans

Fortunately, employers have an effective solution with which to address these benefits issues. While traditional, mainstay benefits such as health care and dental will undoubtedly continue to be the foundation of benefits packages, today’s employees are looking for additional benefits that fit their lifestyles. These ancillary coverages, often known as supplemental benefits, help create a more robust benefits package and reflect more unique, individual needs.

Construction Analysis

AMZA Management & Consulting is excited to work with COTO Construction who provided assistance with a client who received a residential rental property in her divorce settlement. This property has not been activily monitored by the owners for over the last 10 years. AMZA facilitated a complete inspection on the duplex to determine the costs involved in making this property habitable.
The work from COTO Construction was exceptional. We appreciate their quick response.   The property report that was generated after the inspection was quality work.  The client's divorce attorney is reviewing the report and the estimates, and in the meantime AMZA was able to find a property investor who is ready to make an offer.

ANNOUNCEMENTS

AMZA Management & Consulting is continuing their efforts to uniquely service our clients, so instead of hiring more staff we are actively building and increasing our network of partners and consultants.  AMZA is creating dialogue with potential partners about helping them to help their customers.  Our discussions are inspiring new product development ideas, creative services and solutions, and are stimulating profitability.  Now you can get involved by joining AMZA’s growing network, either as a consultant or as a partner affiliate.  Direct an email to consultants@amzamanagement.com and view our website at www.amzamanagement.com.

Attention potential clients and partner affiliates:  Visualize business solutions which include continuous staff trainings, innovative tools for business development, and dedicated temporary personnel to analyze regulatory compliance, through a proven process from AMZA’s consulting network, who will learn your business, build an ongoing relationship with you, and customize the tools to meet your goals.  Imagine having the development of course materials for an in-house training program through outsourcing to AMZA, and have the benefit of engaging one of the consultants in the network to provide instruction.   Contact AMZA to request a consultant visit your business location for an on-site evaluation.  Direct an email to consultants@amzamanagement.com and view our website at www.amzamanagement.com.