Benefits Plan Savings for International Company with Acquisition Growth
Bring employees of an acquisition onto benefits plans with little impact to the employees or the business.
Industry: Technology Sector
Location: 15 Countries
A current customer requested the International Benefits team assist in bringing employees of a recent acquisition onto its benefit plans. The customer wanted to maintain comparable benefit levels for the acquired employees while also minimizing cost impact to the business. As an added layer of complexity, the customer had locations in 15 countries, and the acquired company had locations in nine of those countries. The team needed to provide market level benefits across all locations while managing the overall integration process.
Conducted a data collection exercise and benchmarking exercise for all existing benefit plans.
The International Benefits team worked with the customer to determine the benefit plan integration and broker transition timeline. This was decided based on the terms of the acquisition and annual renewal dates. Once the dates were established, the team conducted a data collection exercise for employees on the acquired company’s benefit plan. After the data was collected, the team benchmarked the customer’s existing benefits against the acquisition’s benefits and local market practice.
Achieved cost savings by leveraging larger group size.
The customer was able to achieve cost savings of 10% across all locations by leveraging its larger group size due to the recent acquisition. The team successfully renegotiated renewals and/or remarketed the benefit plans through access to additional insurance carriers. The customer successfully enhanced its administrative processes by reducing the number of insurance carriers and local brokers. The cost savings were used to enhance employee benefits in key markets.
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