Thanks for your interest

If you are reading this it is likely because you have taken me up on my offer to chat with you about employee benefits in general and our DMCO DigitalFLex solution in particular.

As I mentioned in the email that invited you, I am new to this Internet marketing business. I can promise you insights on creative 21st Century solutions for your benefit challenges, and I can promise you that I will also make a mistake or two on this blog as I try to figure out the protocols and procedures. I trust you will find straight forward unfettered information worth the odd mistake I make on this blogging deal. On to the post.

I contacted you in the first place because this is "renewal season" for many (if not most) employers. Practically speaking, it is likely too late to put our DigitalFlex solution in place for January of 08, but it is certainly the perfect time to discuss it - while the annual madness is front and center and on the top of your "to do list".

Our premise is pretty much focused on these three ideas:
1) You need to control your costs either through a "total compensation" approach or "benefit budget" approach
2) You need to outsource every aspect of your business that does not increase your revenue or lower your costs
3) Your employees will appreciate choice for their benefits and control of their total compensation

Here is my speech - though greatly oversimplified: "You need to get OUT of the benefit business. You need to focus on manufacturing, selling, and/or servicing your widgets - focus on doing whatever it is you do. Provide us with your budget for benefits and we will take care of the rest".

Internet tools, software, and applications now make outsourcing a sound business decision for any non core endeavors. And the last thing small employers need is being tied to legacy costs and legacy systems.

At the heart of the problem for almost all small businesses today is the fact that the cost of group health insurance is "crowding out" wages. Most small employers are faced with the dilemma of trading wage increases for premium sharing. It is not uncommon to have health premiums equal to 25% of base wages.

DigitalFlex puts the emphasis on multiple plan choices for all benefits: health, dental, vision, life and disability and 401(k). Actually, we have used the 401(k) "model" to guide us - that is using an employer contribution to provide the funding for employees to build their plan from a menu of choices. If practical financial realities are going to limit how much any employer may be able to provide for benefits, why not allow employees to have great choice in how they take that allowance?

I will break down the various parts of DigitalFlex in future posts. In the meantime, please ask any questions and offer comments and I will respond as quickly as I can. I look forward to "chatting" with you on this topic.

Dick