San Francisco, CA – February 11, 2016 – Most chief financial officers (CFOs) are deeply involved in their company’s health benefits decision-making, but are doing so without data to determine whether those benefits are achieving their goals, according to a survey of CFOs conducted by the Integrated Benefits Institute (IBI), a national, nonprofit research and educational organization supported by more than 1,150 member companies representing over 20 million workers.
While a solid majority (85%) of CFO respondents reported that they play a role in making decisions about their company’s health benefits, only 6% reported that their company assesses the ROI of its health benefits and just 23% make any performance assessment at all.
The findings of the new CFO survey are particularly striking given that nearly half (43%) of respondents said the finance function of their company participates in health benefits decisions as an equal partner with other functions (such as HR); 15% reported that the finance function makes all or most health benefits decisions. More than half (53%) of CFOs agreed that linking performance to business metrics would help them make better benefits decisions.
Despite a lack of performance data, nearly all CFO respondents reported that their company offers health benefits, such as wellness programs, disability leave and coverage of specialty pharmaceuticals; few reported plans to cut back or eliminate these benefits.
“These results are not surprising. It’s not that companies don’t see the advantage in assessing their programs, it’s that the typical metrics—ROI, for example—don’t necessarily capture what companies are trying to accomplish with their benefits in the first place,” said IBI President Dr. Thomas Parry. “A company’s commitment to health benefits reflects its business strategy and its corporate value system. The value of benefits needs to be assessed in those terms, as well as in dollars,” Dr. Parry concluded.
The results of IBI’s most recent CFO survey, its fourth, will be delivered during the 2016 IBI Annual Forum, February 15-17, at the Westin St. Francis in San Francisco. The report—Finding the Value in Health—is available here or by contacting Robin Schoen at firstname.lastname@example.org or 215.504.2122.
About the Survey
The new CFO survey was conducted by IBI in partnership with CFO Research Services (the research arm of CFO Publishing LLC) during the Spring of 2015. A total of 345 chief financial officers, controllers, directors, VPs of finance, treasurers and other senior finance executives at companies with annual revenues of at least $100M responded to the survey; 40% of respondents are at Fortune 1000 companies with annual revenues of more than $2 billion.
About the Integrated Benefits Institute
The Integrated Benefits Institute (IBI) is a national, nonprofit research and educational organization committed to helping business leaders and policymakers understand the business value of workforce health and recognize the competitive advantages of helping employees get and stay healthy. Founded in 1995, IBI is supported by more than 1,150 member companies representing over 20 million workers.
Robin Schoen Public Relations