Health & Welfare Savings Pitches: What Total Reward Leaders Should Know

It's that time of year again - Health & Welfare consulting firms are ramping up their sales efforts, often promising significant plan savings. We have been engaged over the last month in two different circumstances.

To be fair, it's not easy for the best H&W sales leader/producer to get your attention. When they bring savings estimates to you, it is many times thoughtful and the amounts appear compelling. Often you are approached directly......and then there are those times when you are leapfrogged by a direct approach to your executive team.

As you assess these offers, take a moment to consider:

✅ Are the savings realistic and sustainable?
✅ What's the actual impact on employees?
✅ Is your current consultant (with your team) already addressing these opportunities?
✅ Is it really time for an RFP?

The best decisions balance cost efficiency with employee well-being and are aligned with your organization's goals. They also assess the ability of the proposer to be a true trusted partner vs a lightning strike (brilliant for a moment - gone in an instant).

🔑 Key takeaways:

Validate claims with your current team and consultant
Engage internal stakeholders
Consider piloting new ideas before full implementation
Don't rush (or be rushed if you can help it) into an RFP based on a single pitch

💡 Pro tip: It's easy to let yourself be annoyed by the potential distraction - feeling like you are bringing yourself and the team to 'parade rest' to evaluate the offer. However, you can and should use legitimate approaches as an opportunity to reassess your current strategy and relationship with your existing consultant. Particularly if you haven't modernized your contract and relationship in quite a while.

What's your experience with unsolicited savings pitches? How do you evaluate them? Share your thoughts below! 👇

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