How Manufacturers Use Benefits to Spark Improvement
Published on by Jessica Doremus in Manufacturing
Barnes Dennig, North Side Bank, and USI Insurance recently revealed the results of their 2019 Manufacturing Compensation & Benefits Benchmarking Study that surveyed regional manufacturing companies in Ohio, Kentucky, and Indiana. Of the 97 companies that participated, 48 companies had over 100 employees (large companies) and 49 companies had under 100 employees (small companies). The report findings were covered at a roundtable event, where we teamed up with a group of expert panelists to cover key trends in manufacturing compensation and benefits.
One of the most discussed issues during the panel conversation for all types of companies was how to retain current employees. Some of the top ways discussed, besides base salary and bonuses, were as follows:
- Wellness programs
- Employee loyalty events
- Flexible work arrangements
- Physical plan upgrades
Only about half of the companies surveyed reported that they offer 401(k) plans for their employees. For those that did, employee contributions per month were comparable for small and large companies: about $115 for single employees, $300 for employee/spouse, $260 for employee/children, and about $400 for family contributions. Besides 401(k) plans offered, the top benefits offered for all companies are listed below:
- Health insurance
- Group Life Insurance
- Vision plan
- Dental Information
- Disability information
In order to manage claims, many employers are focused on wellness education, health screenings, and utilization management. About 95% of companies noted that there was an importance of wellness programs in controlling costs. Only about 17% of companies cover an employees’ spouse under their health plan, but only as a secondary center. 22% of employers are excluding spouses from coverage if they have coverage elsewhere. About 35% of employers add a surcharge to the employee contribution for spousal coverage.
Many companies are using alternative plan funding such as Self-Funded plans to reduce plan costs. In the long term, Self-Funded plans have savings opportunities of 5-10% annually to the company. This is due to the exchange for taking on additional risk, which reduces the carrier profit. Pharmacy Management is important due to the growing expenses in each health plan. Pharma spend makes up approximately 25% of the companies surveyed total plan spend. It is recommended to take a complete inventory of your prescription drug program to control spending in the future.
As the manufacturing industry continues to grow, manufacturers look for new ways to retain employees and become more competitive with benefits provided.
These statistics were pulled from the extensive report created by Barnes Dennig, North Side Bank, and USI Insurance. You can request a copy of the full report here.
We recently covered the findings at an in-depth roundtable event. For more information, a recording of the presentation, and findings, please visit our website here.
If you have questions about this report or wish to know how your company can be better positioned to compete in 2019 and beyond, have a member of our Manufacturing team contact you at no charge here, or by calling 513-241-8313