The purpose of this whitepaper is to introduce regional brokerage firms and larger agencies to a business model called Total Cost of Human Capital (TCHC).  TCHC is a business model designed for benefits brokers by C.R. Ekern & Company, following the Total Cost of Risk cost reduction model used by Consultative Brokers.  

Why utilize TCHC?  With the effects of Health Care Reform (compression on commissions due to medical loss ratio requirements, exchanges, etc.) combined with the consolidation of brokerage firms, there will be increased pressure to “swim upstream” and compete in the 200+ employee market space. All firms will be looking for ways to differentiate themselves in an increasingly competitive arena.

TCHC provides the framework for firms to not only survive, but thrive in the future. With TCHC, you will be able to draw a clear connection between your services and your client’s business issues.  This direct impact will allow you and your firm to achieve higher margins with less pressure to compete on fees.  Why? You will be able to quantify your impact. 

 

 

Total Cost of Human Capital: An Introduction