Does consolidation of the benefits market signal a market in crisis?

Crisis? Possibly for individual companies but certainly not for the industry. The primary driver is customer demand, which is shaking up the market and driving innovation, either through acquisition and consolidation or through product development.

Employers are attempting to deliver greater engagement when budgets are under even more scrutiny than ever. This means they are becoming more demanding of their suppliers requiring cost efficiencies, greater participation and added value. Disparate services provided by different companies increases management time (both internally and in management fees) and decreases effectiveness as different schemes / methodologies need to be communicated. The market is finding that to prosper they need to offer  a suite of services under one roof. Of course integrated solutions provide benefits  above and beyond simply cost savings.

At  P&MM our response over the past six months has been to innovate. Our Employee Benefits and Motivation divisions have pooled together the wide selection of services to deliver bespoke solutions, which not only drive savings but deliver greater employee engagement through an integrated approach. Of course the sum is also greater than its constituent parts so with cross promotion and consistent messaging we have helped increase understanding and participation rates.

Another potential driver is that in the current deflated economic climate, companies can increase their market value and prepare for the upturn through acquisition. There is a lot to be said for dealing with the integration issues now in preparation for  future earnings through a broader service.

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