Benefits Valuation Analysis


Benefits Valuation Analysis image

Formerly known as the Benefits Valuation Report (BVR), the Benefits Valuation Analysis is a custom, comparative, benchmarking report. It analyzes how benefit plans compare to the peer group in degrees of increasing specificity – by all plans together, by plan groupings, and by individual plans. 

Two significant elements of the Mercer BVA which are not found in similar reports from other firms.

  • For each degree of specificity, the BVA displays the values and comparative results for 11 sample benchmark employees and a composite workforce. This shows how competitive benefits are within certain groups and compares internal equity.
  • Displaying market replacement dollar values of each benefit plan along with the index that measures the ratios of your values to the median. For example, the average dollar value of a life insurance plan is US$200 with an index of 100, while a defined benefit plan would be US$6,800 and 100. It is clear that while the index is the same for both, the defined benefit plan is more valuable.

Each BVA is supported by Mercer’s expertise in valuing employee benefits of all types. Compiled from the Mercer benefits database, this report represents information from over 1,000 US organizations.

  • Overview
  • How to Purchase

Overview

Points of Comparison

  • Values – calculates pre-tax pay required to replace employer-provided benefits
  • Rankings – positions your values to comparison group
  • Index – measures ratio of your values to comparison group median
  • Employee Profiles – shows how your competitive position is affected by employee demographics
  • Quartile values – shows where comparison group's values break by quartile (25th, 50th, 75th percentile)

Benefit Plans

  • Retirement/Savings: Defined benefit, defined contribution, and stock purchase plans.
  • Health/Group: Medical, dental, life insurance, flexible spending accounts, and post-retirement medical plans.
  • Time Loss: Vacation, holiday, personal leave, PTO banks, sick leave, and short- and long-term disability plans.
  • Nontraditional Benefits: Educational assistance and long-term care.

Composite Workforce

The Composite Workforce represents a salaried population developed from a national cross-section of representative companies that vary by industry, size, and geography.

Employee Profile Comparisons

View Sample Report Pages 

The 11 benchmark employees are defined by different combinations of four demographic factors allowing you to easily assess the sensitivity of the competitiveness within your workforce and among the workforce segments of peer companies. From these four demographic factors, we group the 11 benchmark employees into three categories: Salary Group, Family Group, and Age/Service Group.

Calculating Values

For each employer-provided benefit plan, Mercer calculates a dollar value of each employee profile. These values are displayed in the Employee Profile Comparison charts and tables. Each dollar value represents the estimated amount that an employee would pay in the open market to replace the employer-provided benefit.

Presentation

The plan values for benchmark employees are shown in a series of tables and charts expressed in pre-tax U.S. dollars. Values are based upon the benefit plan features being analyzed in this report. Tables and charts show comparisons for total benefits, as well as all plan categories and individual plans

Executive Summary

The overall competitive positioning of benefits plans is driven by a myriad of factors, such as level of employee and employer contributions, employee demographics and plan design. The BVA Executive Summary highlights some of the key drivers and relates them to the prevalence in the marketplace. Further details on the prevalence of plan features are found in the Summary of Plan Statistics section of the BVA.

How to Purchase

To purchase or for further information, call 800 333 3070.

  • Ordering TypePDF
  • IsOrderingSetNo
  • AdministrativeFees20
  • Compensation GridShow
  • Short DescriptionAnalyzes how benefit plans compare to the peer group in degrees of increasing specificity.
  • RegionUS