Salcomp’s Journey to Sustainable Growth
Imagine tripling your workforce only to watch your benefit costs skyrocket, eating into your newfound profitability. That’s exactly the nightmare scenario that Salcomp Manufacturing faced. But they turned it around with a smarter benefits strategy that scaled alongside their rapid growth.
In 2022, this electronics manufacturer purchased a vacant 100,000 sq ft former Amazon warehouse and began the journey of setting down roots in Dallas, Texas. By early 2023, they had over 80 employees, and the excitement to get the facility up and running was palpable. However, before they could go all in on scaling, they had to address a major problem – the cost of their employee benefits.
The Challenges of Rapid Growth
Salcomp’s story isn’t unique. Whether your company is scaling quickly or your benefits plan hasn’t been updated in years, the challenges are often the same. As Salcomp grew from 80 to nearly 300 employees in less than a year, their existing benefits plan simply couldn’t keep up. They faced three major pain points:
- Spiraling Costs with Zero Flexibility: Salcomp’s costs were skyrocketing, and their broker wasn’t offering any creative solutions – just more of the same options they had seen before. There was no flexibility or long-term strategy, just rising frustration.
- Lack of Strategic Guidance: Salcomp lacked the strategic guidance needed to navigate this rapid growth. Their broker was reactive, not proactive, and they were left to figure it out on their own.
- Outdated Benefits Package: Salcomp’s benefits package was no longer meeting the needs of their diverse, growing team. What worked for 80 people didn’t make sense for nearly 300.
Frustrated and out of options, Salcomp knew something had to change. That’s when they turned to BeneSmart, and that’s when everything shifted.
The BeneSmart Approach
When Salcomp partnered with BeneSmart, the approach was different from day one. This wasn’t about just slapping on a cheaper benefits plan – it was about building a strategy that could grow and scale with the company.
BeneSmart started with a deep dive discovery process, looking not just at Salcomp’s current challenges, but also where the company would be in 3 to 5 years. By understanding both the present and the future, they were able to uncover key inefficiencies in Salcomp’s existing plan that their previous broker had completely overlooked.
Level-Funded Health Plan
First, BeneSmart introduced a level-funded health plan tailored to Salcomp’s unique growth pattern. This gave them more control over their costs while providing flexibility as their workforce continued to expand. Most importantly, it gave them access to key data that they needed to make better decisions for the company’s future.
Flexible Benefit Options
But the solution didn’t stop there. BeneSmart also added flexible benefit options that could evolve with the company’s needs. No more one-size-fits-all packages – employees now had a choice that reflected their diverse lifestyles and priorities.
Strategic 5-Year Roadmap
Perhaps the most important piece, though, was the strategic 5-year benefits roadmap that BeneSmart put in place for Salcomp. This wasn’t just about saving money in the short term – it was about setting Salcomp up for long-term success and stability, helping them manage that growth curve.
BeneSmart’s approach wasn’t just reactive – it was proactive. They created a benefit structure that scaled alongside Salcomp’s growth, ensuring that the costs stayed under control without sacrificing quality of care or coverage for their employees.
The Results
The results speak for themselves. In just the first year of working with BeneSmart, Salcomp saved $215,486 on their benefits – that’s a per-employee savings of $1805. And this is just the beginning. BeneSmart has identified opportunities to reduce Salcomp’s per-employee costs even further in the years ahead, putting them on track to save over $500,000 from their previous carrier.
But the savings aren’t the only story here. Salcomp’s benefits package is now better aligned with the needs of their diverse, growing team. Employees have more choices and better coverage, all while the company maintains control over their costs. It’s a win-win situation.
“BeneSmart didn’t just give us a benefits plan—they gave us a strategy. For the first time, we felt in control of our growth.” – Mareyka Canino, HR Director
Lessons Learned
Salcomp’s story isn’t unique. Whether you’re growing fast or your benefits plan hasn’t been updated in years, the lessons are the same:
- Your Benefit Strategy Needs to Grow with Your Company
If your plan looks the same as it did 5 years ago, chances are it’s costing you more than it should. As your business evolves, your benefits need to evolve with it. Don’t let your strategy hold you back.
- Don’t Settle for Cookie-Cutter Plans
Creative, customized strategies like Salcomp’s can unlock significant cost savings without sacrificing quality. Work with a partner who takes the time to understand your unique needs and challenges.
- Think Long-Term
A solid 5-year strategy doesn’t just save you money today – it sets your business up for sustainable growth and stability in the future. Don’t leave savings on the table in exchange for what’s comfortable or convenient.
Is Your Benefits Plan Ready to Grow with Your Business?
Don’t let your benefits plan hold you back. Contact BeneSmart today for a tailored strategy that scales as fast as you do. Check out our other videos to learn more about transforming your health insurance strategy:
- How to Reduce Health Insurance Costs by 20% or More
- The Hidden Costs of Traditional Health Insurance
- 5 Strategies to Reduce Health Insurance Costs
And be sure to subscribe to our channel at @BeneSmart for more insights on optimizing your health insurance strategy.
Ready to get started? Reach out to us at quotes@benesmartservices.com or contact me directly at rich@benesmartservices.com. Let’s work together to build a benefits plan that can keep up with your growth.
Connect with me on LinkedIn: https://www.linkedin.com/in/richardwestermayer/
To learn more about BeneSmart’s innovative solutions and how they can help your business, check out our YouTube channel, https://www.youtube.com/@BeneSmart
Don’t forget to subscribe @ https://www.youtube.com/@BeneSmart to stay up-to-date on the latest trends and strategies in the world of benefit expense management.Ready to take the first step? Reach out to Rich Westermayer https://www.linkedin.com/in/richardwestermayer/ at rich@benesmartservices.com to get started on your own transformative journey.
