Page 26 - Healthcare PE Pitchbook 34210
P. 26
Case study
Case study
Healthcare group with 5,000 employees uses Conjoint
calculator to align reward cost with employee perceived value
Lockton designed and administered a Conjoint analysis where participants selected a preferred package of
rewards from a set of options, ultimately helping us understand what is most important to employees and the Scatter plot of
U:\STLShared\MDS\2-Internal\EB\COMPRAC\ relative value they assign to each beneit.
Marketing\2020 Marketing\34253\Source average preference
Files\Investment vs utility INVESTMENT CHANGE VERSUS UTILITY CHANGE score on the y-axis
and total reward
3.0 investment on the
Two (2) additional personal
paid days off per year Increase maximum PTO bank size to x-axis. The beneits
2.0
1.5× your annual PTO accrual value with the best return-
Increase buyback of unused
Utility change from current Total Rewards package -1.0 Skip merit/market adjustments for Replace merit increases with cost-of-living adjustments in the upper-left
403(b) company match of 0.25
PTO from 50% to 75%
cents per dollar up to 6.0% of pay
1.0
on-investment are
0.0
Reduce merit budget by 1%
Lower your cost sharing for
Trade current merit increase for
using premium provider
end-of-year bonus opportunity
Voluntary accident, critical illness,
quadrant.
and hospital indemnity insurance
Adjust cost of health insurance premiums based on annual salary level
-2.0
Eliminate employer 403(b) match and permit rollover of your balance to your IRA
one fiscal year
-3.0
compare cost of a particular
high deductible plan
student loan repayment/tuition assistance
program with up to $1,000 per year benefit
-4.0 Single option — Eliminate employer 403(b) match, launch This analysis helped us
beneit to the aggregate
Eliminate spousal coverage employee perceived value. We
-5.0
-$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 can manipulate the design of
Change in Total Rewards investment $ (per person) a reward to be a lower cost or
Compensation Benefits Retirement Time off
higher cost and see in real time
how that change would affect
the employee’s perceived
value.
Lockton Private Equity/Healthcare pitchbook 26 Lockton Companies
Case study
Healthcare group with 5,000 employees uses Conjoint
calculator to align reward cost with employee perceived value
Lockton designed and administered a Conjoint analysis where participants selected a preferred package of
rewards from a set of options, ultimately helping us understand what is most important to employees and the Scatter plot of
U:\STLShared\MDS\2-Internal\EB\COMPRAC\ relative value they assign to each beneit.
Marketing\2020 Marketing\34253\Source average preference
Files\Investment vs utility INVESTMENT CHANGE VERSUS UTILITY CHANGE score on the y-axis
and total reward
3.0 investment on the
Two (2) additional personal
paid days off per year Increase maximum PTO bank size to x-axis. The beneits
2.0
1.5× your annual PTO accrual value with the best return-
Increase buyback of unused
Utility change from current Total Rewards package -1.0 Skip merit/market adjustments for Replace merit increases with cost-of-living adjustments in the upper-left
403(b) company match of 0.25
PTO from 50% to 75%
cents per dollar up to 6.0% of pay
1.0
on-investment are
0.0
Reduce merit budget by 1%
Lower your cost sharing for
Trade current merit increase for
using premium provider
end-of-year bonus opportunity
Voluntary accident, critical illness,
quadrant.
and hospital indemnity insurance
Adjust cost of health insurance premiums based on annual salary level
-2.0
Eliminate employer 403(b) match and permit rollover of your balance to your IRA
one fiscal year
-3.0
compare cost of a particular
high deductible plan
student loan repayment/tuition assistance
program with up to $1,000 per year benefit
-4.0 Single option — Eliminate employer 403(b) match, launch This analysis helped us
beneit to the aggregate
Eliminate spousal coverage employee perceived value. We
-5.0
-$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 can manipulate the design of
Change in Total Rewards investment $ (per person) a reward to be a lower cost or
Compensation Benefits Retirement Time off
higher cost and see in real time
how that change would affect
the employee’s perceived
value.
Lockton Private Equity/Healthcare pitchbook 26 Lockton Companies
