The challenge

An advertising giant with more than 50,000 employees needed Lockton to improve its UK benefits program. While we already managed the client’s global benefits, each UK-based entity managed its own people strategy – with little central coordination. Multiple acquisitions had left a patchwork of providers, brokers, and policies, with limited oversight at group level leading to higher costs. The client wanted one, affordable benefits program that met the needs of all employees. And the rollout of a new HR platform added urgency.

Our approach

Lockton consultants worked with the group’s procurement team and all the relevant stakeholders. First, we audited their program, holding one-to-one meetings with managers to compare and analyze benefits and strategy. Next, we shared our findings and a clear path forward with the leadership team. Bringing all benefits together through a single provider, we reduced admin and costs, and helped to integrate benefits on their new HR platform. We also provided benchmarking analysis, and outlined a two-year plan to cost optimization with alternative funding options.

The impact

• 28 life and income protection policies consolidated through one provider.

• 14 healthcare schemes to be consolidated within two years.

• Initial savings of 9%, with additional savings expected through healthcare consolidation.

• Brokerage costs reduced by 11%.

• Roadmap to harmonize risk and medical benefits.