Back Button
Menu Button

Psst…Guess Which Areas in Iowa Offer More Employee Benefits?

Knowledge Is Power“All politics is local.” Tip O’Neill, Former Congressman from Massachusetts

To rephrase this famous quote:

“All employee benefits in Iowa are local.”

Allow me to explain…

Using the Lindex Radius, a simple interactive feature within our Lindex Online® benchmarking program, I compared the prevalence of employers offering two important benefits – health and dental plans – to statewide averages in seven different Iowa metropolitan areas. The seven locations are:

  • Cedar Rapids (zip code: 52401)
  • Council Bluffs (51501)
  • Davenport (52801)
  • Des Moines (50309)
  • Dubuque (52001)
  • Mason City (50401)
  • Sioux City (51101)

The Lindex Radius allows the user to insert their desired zip code and radius (in miles) to determine the information being sought for any given location within Iowa*. For example, using a 50-mile radius (regardless of employer size and industry), the user can quickly learn the percentage of employers who offer health insurance coverage for each of the seven Iowa locations. In fact, when compared to the statewide average, the variances of offering health coverage are quite startling.

Using the statewide average as the baseline (set at zero), the graph below displays the variance in the percentage of employers offering health coverage to their employees in each location:

Health Coverage Offered by  Major Cities in Iowa

So what do these variances tell us about health coverage in Iowa?

Location can matter a great deal!

Employers within a 50-mile radius of Des Moines offer health coverage about six percent more than the statewide average, while Cedar Rapids, Mason City and Davenport-area employers fall below the statewide average by five percent. From this, we also learn that 19 percent more Des Moines-area employers offer health coverage when compared to Dubuque-area employers! The margin of error of this data does vary by zip code and desired radius.

The graph below shows the variances for each Iowa location offering dental coverage:

Dental Coverage Offered by  Major Cities in Iowalide3

When offering dental coverage to employees, Des Moines–area employers offer this benefit 19 percent more than the statewide average. With the exception of Davenport, employers in the other five cities offer less dental coverage compared to the statewide average, while Dubuque lags with this particular benefit. Other benefits found within our study, including: retirement, group life, short- and long- term disability, vision, sick leave and PTO also show a great deal of variance between Iowa locations.

It is important to note that both employer size and industry will greatly impact the averages found within each metropolitan area. Our previous studies confirm that as employers grow in size, their ability to offer more benefits will expand. Governmental (state and local) entities are more likely to offer some key benefits compared to, say, the retail industry.

Employer respondents within our surveys are randomly-selected, which makes the results highly-reflective of the overall employer population. Within any given geographical area in the state, the size and industry of employers will greatly impact the scope of benefits offered for each particular area.

Using Lindex Online and the Lindex Radius will ensure that employers remain competitive within their specific ‘turf’ of operation. As we all know, when assessing the labor pool within a given market, the attraction and retention of employees will always be an important consideration for any employer.

Knowledge of pertinent facts does indeed trump pure guesswork!

To stay abreast of employee benefits and healthcare issues, we invite you to subscribe to our blog.

*The margin of error must be considered when using the Radius filter. If the radius is set at too few miles within a desired zip code, fewer survey respondents will appear, resulting in a higher margin of error calculation which will provide less data credibility to the user.

Lindex Online® – Hitting the Mark in Iowa

Lindex Online“Torture the data, and it will confess to anything.” Ronald Coase, Nobel Prize Laureate

Throwing darts at a dartboard takes great skill, especially if one is incented to consistently hit the bulls-eye. For most others, it is merely a game of chance – so what if the errant dart lands in a different zip code from the bulls-eye? The difference between those throwing the darts can boil down to one word – ‘motivation.’

Due to the sheer cost of offering benefits to employees – thanks largely to escalating health insurance premiums – employers are increasingly motivated to rely on credible, localized data to make decisions about employee benefits. According to the Bureau of Labor Statistics, the cost of employee benefits constitutes a significant percentage of total employee compensation – roughly 31 percent for private organizations and 36 percent for state and local governments!

An essential, on-going source of Iowa benefits information is summarized in our annual ‘Iowa Employer Benefits Study,’ which now enters its 17th year. This report provides overall statewide data that combines all industries based on employer-size categories, which is important for employers who wish to benchmark their plans with other similar-sized employers. This study gives employers a ‘birds-eye’ view of overall benefits offered by Iowa employers, but it does not compare employers to key industries – or by employer location.

But Lindex Online® does!

Lindex-Online---IBB-Logo-50

Lindex Online is our innovative web-based tool we designed to ‘slice-and-dice’ the myriad of data from our annual survey into meaningful benchmark information that compares key benefits offered by employers.

Lindex Radius

Lindex Radius is a benchmark filter

An online purchaser, such as an employer, broker/consultant, association or insurance carrier selects a ‘filtering’ tool that compares the client organization to six key industries – based on seven different employer-size categories. Additionally, the on-line purchaser can benchmark their benefits using the Lindex Radius, which combines only those surveyed employers who fall within a designated mile-radius of the client zip code (see Lindex Radius on right).

Key benchmarked industries include:

  1. Overall (All industries combined)
  2. Manufacturing
  3. Retail
  4. Finance, Insurance, Real Estate
  5. Other Services
  6. Government and Education
  7. Healthcare and Social Services

Depending on the number of respondents within each survey, we may consider adding a few more industries to Lindex Online in the future.

Because employee benefits data can be both voluminous and complicated for an employer, Lindex Online distills this data into one relevant number to provide clarity – known as the Lindex®.

2014 Lindex Gauge

Overall 2014 Lindex score in Iowa is 74.

The Lindex is a complex algorithm that measures the types of benefits offered, preferences employees have for each specific benefit, and employee costs associated with those benefits. Ranging from 0 to 100, with lower scores indicating fewer and more expensive benefits, and higher scores indicating more comprehensive benefits being offered at a lower cost, the Lindex allows the benchmarked employer to compare their overall benefit offering to other employers on an on-going basis.

Without great practice (and torture!), Lindex Online will guide your dart to the intended bulls-eye. To learn more about the features and cost of Lindex Online, please contact us.

To stay abreast of employee benefits and healthcare issues, we invite you to subscribe to our blog.

Business Relevancy – A Matter of Life…and Death

Resisting Change Leads To Obsolescence or Death

Resisting Change Leads to Obsolescence or Death

“The reports of my death are greatly exaggerated.” Mark Twain

In 1897, when reports of Mark Twains’ (Samuel Clemens’) death were misconstrued, Twain made his famous quip to a reporter who had inquired about his health.

Such premature reports about one’s demise can be similar to reports about a particular product or profession.

Having relevancy in business truly matters, especially when economic and social climates continue to shift in unchartered territories. One glaring example of this can be found in a profession that I have some knowledge about – the employee benefits brokerage business.

During the past five years, the word on the street and, within the brokerage community is that Obamacare is a major threat to their business model, which could eventually render their practice obsolete. Could this really happen?

It depends on the broker.

In the past, traditional benefit brokers, especially the small- to mid-sized organizations, relied on ‘transactional’ services when serving their individual and employer-group clients. Within this role, brokers acted as the liaison between insurance companies and their clients, seeking numerous products and services from a host of insurance companies that offered various benefits-related insurance products. As a result, voluminous information was subsequently placed into spreadsheets to ‘compare and share’ the features and prices of products. Client involvement usually escalated at the end of this acquisition and implementation process.

Today, this customary role is merely one of many multiple services that brokers must now partake in order to differentiate their services (and value) from other competitors and emerging disruptive technologies. To avoid being displaced, brokers are constantly forced to find new value-added competencies that will enable them to:

  • Embrace adaptation efforts in an ever-changing environment (including technological advances).
  • Anticipate and identify new industry trends before others do.
  • Mask the complexities of new laws and regulations through continuous compliance education and communication efforts with clients.
  • Serve as an indispensable resource on relevant information and data.
  • Initiate creative solutions in an otherwise mature industry.
  • Stay close to the client and develop an emotional connection that elicits trust.

In short, the reports regarding the death of benefits brokers are greatly exaggerated, at least for those who proactively serve their clients and are well-positioned to take advantage of new opportunities.

Business disruption is clearly not exclusive to the brokerage world. In fact, it is rampant in most every other segment of our economy. The disruption of a product, business model or entire industry can happen relatively quickly, especially when innovative technology initiates a simpler life that allows greater affordability for those who have a ‘job’ to do.

Having an energized mind that continues to learn new things every day is a good start to becoming a knowledgeable thought leader within a given profession or industry.

In fact, it’s imperative.

To stay abreast of employee benefits and healthcare issues, we invite you to subscribe to our blog.