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Iowa Lindex© Score
Maybe Tied to Organizational Culture?

Lindex Online BenchmarkingDo you have a good sense of your organization’s culture? What sets your employer apart from other employers within your community? Are you consciously (and sub-consciously) making behavioral choices that reflect the essence of what your employer represents to its employees, customers, community and to the general public?

In its purest form, an organization’s ‘culture’ represents the collective values, beliefs and principals of its members – a product of many factors that include history, market, product, technology, type of employees, management style and environmental impacts from the community in which it operates. In other words, an organization’s culture represents the ‘DNA’ or identity that is unique to each employer.

Why is this important? Because it’s fascinating stuff!

Allow me to explain. Our Lindex Online Benchmarking® program allows Iowa employers to compare their benefits package to employers of similar size, industry and location. Upon completing an online questionnaire on a vast array of benefits and insurance options an employer offers at their workplace, the employer receives a report comparing their benefit offerings to those who responded in the most current Iowa Employer Benefits Study©.

This report produces a great deal of comparative information about many key benefits that are highly-desired by employees – including health and dental insurance, group life and disability coverages, retirement plans, sick leave and vacation, among others.

So with all of this benchmark information being compared and shared with the employer, how does an organization know if their plan offering is competitive? Easy! All information is distilled into one simple number – the Iowa Lindex score®.

The Lindex score is a complex algorithm that distills voluminous and complicated data into one relevant number between 0 and 100, providing clarity on just how competitive an employer’s benefits package is to other employers within Iowa. Lindex measures the availability, costs and use of many key benefits. This score is compared to the overall average Lindex score calculated for those who responded to the most recent survey.

For 2014, the statewide average Lindex score was 74. The Lindex gauge below displays the quartiles of scores, with the lowest quartile ranging from 0 to 64, the second quartile being 65 to 76, third quartile being 77 to 85, and the highest quartile at 86 to 100. An employer with an average Lindex score will be around 74.

2014 Lindex Gauge

As with an organization’s culture, not all employers are alike when offering employee benefits. With this in mind, once an employer learns their Lindex score, things can get quite interesting.

For example, when employers score in the highest quartile (green range), their reaction can vary wildly. One employer may wish to tout their strong score to their employees, attributing the results to a non-biased third-party tool (Lindex). After all, employee benefits constitute about one-third of total employee compensation.

But with this same high score, another employer may wish to keep this score under lock and key and strategically use this number to re-position their competitiveness at the desired mix of pay and benefits. Fundamentally, it is all about strategy – and, ultimately, their culture. There is no ‘right’ response – only the response that is ‘right’ for each organization.

The culture of an organization might determine how just one number will be used when deciding important benefit issues. From my perspective, this is quite enjoyable to watch!

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