Key Benefit: Cost Visibility
In the ongoing quest to improve profitability, it goes without saying that cost control is an important piece of the puzzle. This is especially true in times when revenue increases are hard to come by or even worse, when revenues decline. One of the biggest hurdles to cost control is the ability to see the sources of expense that are impacting profitability. After all, if a cost is invisible there’s little chance of it getting the necessary attention needed to control it.
When it comes to the programs you rely on to compensate, benefit, and retain a competitive workforce, very few companies know the true administrative costs, and are very likely underestimating their employee-related program costs (by a lot).
Sure, you know what you pay in outsourcing and you know what you pay the staff that directly manages these programs; but there are other costs you have likely not considered because they are not currently captured or reported appropriately. They’re simply not visible.
As an example, when it comes to payroll you would expect to find the administrative costs in the payroll department. In fact, you might be surprised to learn how much administrative time is spent by others outside the payroll function, gathering and compiling timesheets, distributing paychecks, preparing spreadsheets and dealing with other payroll-related issues.
Lyceum helps identify these and other currently ‘hidden’ costs and gives you a technology platform to control and reduce these costs over the long-term.
What you’ll see with Lyceum:
With Lyceum’s single-source technology and services solution, you’ll gain visibility into the exact price you’re paying to administer employee-related programs. And once you see the costs, we give you the power to control and reduce them. Here are just a few of the hidden costs our solution can reveal inside your organization:
Indirect labor costs for employees who provide field support to the payroll and HR departments through activities such as collecting and approving timesheets, responding to employee benefit-related questions, and distributing paychecks.
Direct non-labor costs, including broker commissions, vendor fees, and corporate overhead related to data research, HR consultation, benefit census, compliance reporting, executive reporting, and managing employee benefit/insurance programs.
For many companies, these “administrative costs” alone add up to as much as $120 or more per employee, per month. For an average-size 250 person organization, that's $30,000 per month.
With a technology and service solution from Lyceum, you can control these costs and send the savings directly to your bottom line.
Our solution provides the means to control currently-hidden administrative costs in the face of increasing cost-cutting pressure and results in:
- Visibility into the exact costs of retaining employees
- Per-employee costs that are lower than industry average for current programs
- New sources of long-term cost savings