Employee benefit services including pension administration, health support, rewards and recognitions, pharmacy benefits, financial benefits are outsourced to HR consulting/outsourcing service providers to optimize cost and obtain technology related support to smoothen the employees experience within the organisation.
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Employee Benefits Industry Benchmarks
The average annual savings achieved in Employee Benefits category is 11.46%
The industry average payment terms in Employee Benefits category for the current quarter is 50.8 days
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Employee Benefits market report transcript
Employee Benefits Management Global Industry Outlook
The global benefits management market is valued at $32 billion in 2016.
- The market is forecasted to grow at a CAGR of 5–6 percent and reach $36 billion in 2018.
- Regions such as Europe and North America and parts of APAC such as Australia, Japan, Hong Kong and Singapore have high market maturity.
- South Africa, India, Brazil and China are expected to be the future growth driving markets for benefits management services.
- KPIs for employee benefits management include the accuracy of processing payments, HR data timelines and third-party interface timelines.
- The major cost components in the employee benefits market include: Administrative costs: 35 percent, Outsourcing costs: 10 percent, Technology:10
percent, Compliance & Documentation:15 percent.
- Employee Benefits Spend Categories can be divided into:
(i) Mandated Benefits (Social Security Insurance, Workers Compensation, Unemployment Insurance)
(ii)Sponsored Benefits (insurance, benefits, retirement benefits, medical assistance benefits and expatriate benefits)
- The global contract operates on a PEPM pricing model, while the spend volume portion of the contract operates on a commission based or a combination of
hybrid pricing models. These are the methods widely prevalent in the industry. Emerging countries in the Asia Pacific and Latin America outsource tactical
activities such as claims administration, reimbursement, call centre support, and data entry through local engagement for a contract duration of 1–2 years.
- Major growth drivers in the North American BAO market include the introduction of the Healthcare Reform Act by the Obama Administration and the rising cost of drugs. Others include web-based decision-making analytics tools and the emergence of healthcare exchange offered by mature BAO providers
Employee Benefits Management Global Market Maturity
Global benefits service providers are focusing on entering emerging markets such as APAC and Eastern Europe by partnering with regional and local service providers
- As an initiative to consolidate spend on employee benefits, Fortune 500 companies are entering into multi-country BAO engagements with global service providers
Employee Benefits Management Industry Trends
- The global BAO market has increased by 5 percent since 2014; this has been realized due to the scalability of the suppliers who have been able to adapt to the changing business needs.
- The European and North American BAO market accounted for about 60 percent of the global market share in 2016. The U.S., UK, Germany and Australia are the most mature countries, in terms of single-country BAO deals.
Why You Should Buy This Report
Global Benefits Management Market drivers and constraints and regional market outlook in areas like North America, Europe, Middle East and Africa. The report lists out the opportunities and challenges in each of these regions. The benefits of market research include a report on the Porter’s five force analysis of developed and emerging markets. The report gives insights into supply trends and does a SWOT analysis of major players like Aon Hewitt, MetLife Inc., Aetna Inc., Fidelity Investments, etc. It gives a cost and pricing analysis and a pricing forecast.
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