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Brokerage Services for CBIZ Employee Services Organization
As an example based on average salary of $55,000:
Assume PIKE turnover is 25%
Average cost to replace employee is $33,000
Total turnover replacement cost is $45,375,000 (5500 employees x 25% x $33,000)
Each 1% of turnover reduction saves PIKE $1,815,000
A turnover reduction of 6% down to the industry benchmark of 19% with a dedicated communication
and enrollment process could generate an estimated savings of $10,890,000. (see attached)
We would propose that PIKE investigate an enrollment solution other than the Oracle application from a
vendor that specializes in providing integrated communications and enrollment solutions. A significant
number of large employers utilizing ERP/HRIS solutions like Oracle, Workday, SAP and UltiPro have elected to
utilize third party solutions that are fully customizable to their needs. These services include print, video,
social media and electronic communications, enrollment and new hire call centers along with a custom
enrollment platform that fully integrates with Oracle.
b)
Cost Containment
The following programs can be adopted by PIKE to generate significant cost reductions without
endangering its “grandfathered status:”
i.
PBM Carve Out – up to 15% reduction in pharmacy spend without plan design changes
ii.
Life and Disability Marketing – up to 25% reduction in cost without plan design changes
iii.
Dependent Eligibility Audit – assuming 5% of dependents are ineligible and removed from
plan, a medical plan cost reduction of 4%
iv.
Network Efficacy Study – utilized to negotiate more attractive admin fees, larger discounts and
variable networks for potential medical plan savings of up to 3%
v.
ROI study for onsite clinic at corporate headquarters. Typical ROI in the 1.5 to 2.5 times range
vi.
Data mining and population health management, potential savings from chronic care and high
cost claimant targeted protocols, potential savings of 2 to 3%
vii.
Stop loss captive analysis with potential to reduce stop loss cost by 10% to 15% without
increasing deductible
c)
Consultancy Partnership
CBIZ is capable of providing a full range of HR services aimed at augmenting and supporting existing
PIKE resources
i.
Recruiting
ii.
Compensation Analysis and Consulting
iii.
Health and Welfare Consultancy
iv.
Retirement Planning and Consultancy
v.
Risk Management to include Cyber Risk Evaluation
vi.
Human Resource Consultancy