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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.