An Employment Practices Gap Analysis
In the insurance world, plan administrators and managers of pools will be quick to share that managing risk means an evidence-based awareness of the member’s risk profiles. Working off assumptions just doesn’t cut it. However, a gap analysis process can be painful and time consuming.
The traditional approach has one major pitfall – often, it takes more time to get that final report than the time that final report is relevant. Implementation of action plans is difficult to measure for ROI or effectiveness, leaving progress in the realm of assumption.
It’s no wonder a gap analysis rarely happens, if at all.
The ability to identify, quantify and measure risk in an efficient time-framehas posed one of the greatest challenges across the industry for too long; it no longer has to be a challenge.
This year, one of our clients did some great work in the employment practices arena, which we wanted to highlight in a case study (download the PDF at the bottom!).
Partnering with subject matter experts and utilizing in2vate’s Assessment tool, they launched a survey for each member to complete an employment practices self-audit.
From the time the end product was launched to the date its results were in front of the Board of Directors took only 4 months.
And this is no small organization – as one of the most mature JPAs in California, the group consists of 10 smaller JPAs which contain a number of approximately 200 public entities. On top of that, this project was working with 110,000+ pieces of datum, and this was their first time using the tool.
With 88% of the 200 constituents completing the survey, this organization was able to provide solid, strategy-driving data. For example, they discovered that 64% of the constituents who responded had not done a full review of their internal policies in at least 3 years, if at all.
The bird’s eye view of risk was also complemented by an overview of where each member desired extra support. The JPA found out that 66% of their entities who responded were interested in additional training resources for managers and supervisors, and that 50% were interested in additional training resources for employees and personnel. The large majority also expressed interest in a partial or global audit.
Identifying risk is one side of the coin, but compiling feedback on exactly how to address risk for each individual member is equally powerful in making real progress to reduce risk and claims.
Our client praised the amazing compliance rate alone as a solid ROI, but said the data capabilities and flexibility of the tool were also paramount in accomplishing their goals.
110,000+ pieces of data from this one survey were collected, organized, analyzed, and in front of the Board in 4 months with in depth information revealing areas of risk and a plethora of insightful, proactive feedback.
Armed with this information, the Board has the ability to glimpse inside the inner-workings of their large risk community and create strategies that focus on specific targets as opposed to a general blanket risk solution.
The capabilities of the tool also allow for measuring improvement over time, dynamic follow up, creation of individual action plans, the tracking and measuring of those plans, and capabilities to see improvement towards concrete goals in near-real time.
Their work is an example of how to make risk management simple – and a testament that simple is possible.
Article Source Link: in2vate, LLC