Our functional approach is a systematic method of analysis that we use to evaluate an employer's total employee benefits program. This approach represents the organized assessment of an integrated employee benefits function. We have developed a proprietary benefits survey format, which we utilize to benchmark and evaluate benefit plan designs, market trends and cost parameters with local, regional and national statistics. With this information, we are able to prepare sound recommendations for our client to improve the quality, value and employee appreciation of the total benefits program, while identifying opportunities for benefits enhancement, cost containment and tax savings.

Many times benefit enhancements can be implemented with minimal or no cost to the employer. Through this comprehensive analysis each benefit, as well as the entire benefits program, can be evaluated in terms of its ability to meet employee's needs within the employer's overall compensation goals and cost parameters.

The type of industry and individual employer characteristics will also have an impact on an employer's benefits philosophy and on the design of its employee benefits program. A larger well-established employer in a mature industry, a financial institution, or a nonprofit organization may take a more liberal approach toward meeting the benefits needs of its employees. But developing industrial firms or other growth companies, which may have considerable needs for capital, may seek to design more short term oriented, incentive types of programs. Industries that are highly competitive and subject to cyclical fluctuations mat not be willing to add to their fixed labor costs by adopting or liberalizing employee benefits even though there may be a functional need to do so. However, even in these circumstances employers should attempt to allocate their available benefit dollars in as consistent and logical a manner as possible to meet the needs of their employees as well as their own corporate objectives. The functional approach is most appropriate in such cases, because resources for compensating employees are relatively scarce.