Benefits & Rewards | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Benefits & Rewards Procurement

Overview

The market for HR Services and its sub-segments such as Benefits & Rewards are at an interesting intersection. With the influx of millennials in the workforce and increasing diversity at the workplace, companies are struggling to design pay and benefits processes that are uniformly relevant for the lifestyles of such diverse groups.

New locations and vendors are emerging as cost effective suppliers of Benefits & Rewards, offering an opportunity to widen the supplier base and gain further negotiation leverage with incumbent suppliers.

People analytics has emerged as a rather new branch of HR function with an aim to gain deeper insights into an employee's behavior, motivators, risk of attrition and general wellbeing. There is a high demand for suppliers who can integrated technology in traditional processes to generate insights on the buyers' talent pool.

Trends like these and many others discussed in this report are necessitating a relook at the way Benefits & Rewards is procured and the procurement cost saving opportunities that exist.

Benefits & Rewards Procurement Best Practices

The report discusses in detail the best practices that have served well the category managers responsible for Benefits & Rewards procurement.

For example, Buyers must constantly communicate with service providers to provide them with better knowledge about buyer's goals and visions, which enables service providers to formulate customized plans and processes for the organization. Strategic partnerships with service providers enable buyers to have visibility into the latest technological innovations and cost-saving levers adopted in the market.

Buyers should promote competitive bidding scenarios and supplier competition to gain cost and value benefits. Bids should be invited from a substantial pool of service providers that can meet their requirements.

Employers are focusing on providing employee-friendly interfaces (such as mobile-enabled services and web portals) to access and manage benefits and options available to employees. Suppliers who have the technical capabilities to seamlessly integrate with the employer's internal systems without comprising the data protection should be preferred.

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Risks in Benefits & Rewards procurement

Benefits & Rewards procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Benefits & Rewards procurement. Some examples include:

Business interruptions/damage caused by human error, natural disasters, computer viruses, malicious attacks, computer denial of service attacks, fire, and other disasters which are beyond the control of suppliers can lead to financial or data losses within buyers' operations
Many service providers offer services via SaaS, mobile technology, and desktop software. If they do not remain up-to-date with the latest technologies and keep up with changing industry standards, they may not only be unable to resolve clients' problems but also lose the interest of potential clients
To provide good quality services and solve issues, service providers must have highly skilled and experienced employees. Inability to attract and retain talented employees will impact their competitiveness and relevancy in the market

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Who should read this report

The report is intended to serve as a one-stop reference guide for Benefits & Rewards procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “Benefits & Rewards: Procurement Report 101” as well as for category experts actively tracking the global Benefits & Rewards procurement market.

You may have just initiated your research to design a winning Benefits & Rewards procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on Benefits & Rewards procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The Benefits & Rewards procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the Benefits & Rewards market?
What is the correct price to pay for Benefits & Rewards? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Benefits & Rewards Suppliers Market?
Who are the top Benefits & Rewards suppliers? What are their cost structures?
Which negotiation levers can reduce Benefits & Rewards procurement cost ?
What are supplier margins in Benefits & Rewards market?
What are the best practices for Benefits & Rewards procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

Benefits & Rewards Category Insights: What is inside

The Benefits & Rewards market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on Benefits & Rewards procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Benefits & Rewards. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on Benefits & Rewards market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the Benefits & Rewards category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of Benefits & Rewards procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.