Request basic data on consultants

[JanetM]

Hi all - we are thinking about bringing in "a consultant" to review our employee benefits package. We are wondering what the cost of this may be and if it is even worth spending time on.

Would like consultant to come in on hourly basis - not to sell us something - just to give opinion on what we are doing right and wrong.

Can anyone give me some idea of what the Hewitts, Bucks, Mercers, etc. charge by the hour. (those are the only 3 I could think of just now)

Big fear is that we will start getting proposals and the amounts will send the boss into orbit. So if anyone can give me ballpark - or even real number they have been charged recently - I would appreciate it.

Send private message if you don't want to post.

thanks!

[Guest bayarea1]

Doubtful that you will find a worthy consultant to contract hourly, and for good reason. Although you don't specify which areas require review, the amount of time (in hours) spent performing an adequate process analysis might surprise you. Contracting with substandard consultants who conduct high-level "looks good to me" process reviews can be hazardous to the career of an unsuspecting HR person.

[E as in ERISA]

Ask good consultants to describe a "phased" approach for you: Stage 1 they look for issues at a high level, Stage 2 they target the areas which have the most issues, Stage 3 they prepare a written report, Stage 4 they recommend solutions, Stage 5 they help implement solutions etc. Stage 1 might be done in a reasonable amount of time -- one day to one week depending on how plan specific you want to get. (An experienced consultant generally knows what the recurring problems are in plans in general and can quickly identify some of them that apply to your plan. But to find the ones that really create the biggest issues for you might take some additional time and may well be worth it). You can hire them stage by stage (depending on how well you work with them and whether there is any chance that you will ever followup on the issues yourself once they leave).

The price may depend on your location and the person's experience. Even bigger firms may have some cheaper personnel to offer -- but it will generally take them longer ($100 x 40 hours may get you the same or less than what you can get for $400 x 10 hours).

[GBurns]

Katherine

How do you determine a "good" "consultant"?

Who determines what is "high level"?

JanetM

Have you considered the input from experienced insurance agents or from the insurance providers themselves?

[JanetM]

GBurns,

This request came from HR. We are self insured, think HR is looking at trying to standardize the benefits for all the companies nationwide. I think what they were proposing to having someone look at the various benefits (excluding retirement) that are currently being offered.

[Guest bayarea1]

Plan consolidation can be an arduous task dependent upon the number of plan variations in existance and the extent to which your company wishes to streamline. This process can be especially sensative if benefits are collectively bargained.

An insurance agent/broker or client liaison does not typically possess the motivation or resources to perform an adequate analysis of this magnatude.

[E as in ERISA]

GBurns --

bayarea1 had indicated "worthy consultants" wouldn't do an hourly project, and "substandard consultants" might but would not perform well. I interpreted that to mean that no one would do this. I am questioning that conclusion -- noting that the first step for an experienced consultant would normally be to go in and get an understanding of the plan(s) and what the opportunities and issues are. Most can perform that step as a stand-alone project. (Although their willingness to do so might depend on availablity, value of the customer, etc.)

[Guest bayarea1]

Katherine-

In terms of consultants, the interpretation would be: knowledge and experience is costly. There is no shortcut to adequacy in this regard; cliché or not. Obtaining a consultant's full client list should be the first order of business. Many in HR (who may not have significant experience with outside service vendors) fail to realize that the results provided, and costs associated with providing them, can become an intimate extension of the individual who engaged the advisor.

I'm perplexed by the significance of the "phased approach" i.e., plan evaluation as a stand-alone project.