Case study: Blue Cross Blue Shield of Tennessee
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“With more than 5,000 employees and 2 million plan members, our business is too large to continue calculating bonuses manually. Iconixx Incentive has given us the flexibility to revise our goals in response to market changes, and produce immediate reports to examine how the plan is working.” BCBS offers its employees financial incentives for the achievement of business and personal goals, which are paid out in quarterly bonuses. Supervisors use a workflow process to review the achievement of goals. Once approved, the Accounting Department manually calculates the employee’s bonus and issues the payment. Each month, the Accounting Department also performs financial accruals to account for the employee’s changing financial status. The department also uses spreadsheets to track the payments and report results to company managers. BCBS needed a system with the flexibility to support an approval process with constantly changing goals, as well as the ability to prorate the employee’s salary, position and bonus plan changes throughout the year. BCBS adopted Iconixx as a flexible Incentive Compensation Management (ICM) solution. Iconixx offers an integrated system for: • Approval processes • Quarterly bonus calculations • Monthly accounting accruals • Reporting on incentive compensation plans Client Profile Blue Cross Blue Shield of Tennessee is an independent, not-for- profit, group health plan organization. The company is a US state branch of a nationwide association of independent plans, ensuring that plan members receive the same health benefits that are available throughout the country. With more than 2.3 million members, Blue Cross processes 60 million claims and provides nearly $9 billion in benefits each year. Challenge Solution BLUE CROSS BLUE SHIELD OF TENNESSEE STREAMLINES INCENTIVE COMPENSATION APPROVALS WITH ICONIXX INCENTIVE
Transcript of Case study: Blue Cross Blue Shield of Tennessee
“With more than 5,000 employees and 2 million plan members, our business is too large to continue calculating bonuses manually. Iconixx Incentive has given us the flexibility to revise our goals in response to market changes, and produce immediate reports to examine how the plan is working.”
BCBS offers its employees financial incentives for the achievement of business and personal goals, which are paid out in quarterly bonuses. Supervisors use a workflow process to review the achievement of goals. Once approved, the Accounting Department manually calculates the employee’s bonus and issues the payment.
Each month, the Accounting Department also performs financial accruals to account for the employee’s changing financial status. The department also uses spreadsheets to track the payments and report results to company managers.
BCBS needed a system with the flexibility to support an approval process with constantly changing goals, as well as the ability to prorate the employee’s salary, position and bonus plan changes throughout the year.
BCBS adopted Iconixx as a flexible Incentive Compensation Management (ICM) solution. Iconixx offers an integrated system for:
• Approval processes
• Quarterly bonus calculations
• Monthly accounting accruals
• Reporting on incentive compensation plans
Client Profile
Blue Cross Blue Shield of Tennessee is an independent, not-for-profit, group health plan organization. The company is a US state branch of a nationwide association of independent plans, ensuring that plan members receive the same health benefits that are available throughout the country. With more than 2.3 million members, Blue Cross processes 60 million claims and provides nearly $9 billion in benefits each year.
Challenge
Solution
blue CroSS blue Shield of tenneSSee StreamlineS inCentive CompenSation approvalS with iConixx inCentive
Since implementing Iconixx Incentive, BCBS has realized the following benefits:
Improved efficiency – Iconixx Incentive makes the entire process more efficient, reducing the time and resources needed to manually calculate the employee’s bonuses and conduct the monthly financial accruals.
Greater agility – Iconixx Incentive provides the flexibility that BCBS needed to accommodate changing bonus structures, goal plans, and pay grades. Employees can also follow an easy-to-use online process to review their goals and progress.
Better reporting – Iconixx Incentive has improved BCBS’ reporting functions by reducing the staff’s need to create reports manually. BCBS managers now receive the most accurate, timely reports and can make specific data queries as the market changes.
Iconixx has increased efficiencies for administering BCBS incentive and bonus system. The Accounting Department’s time and resources to calculate the monthly accruals have been reduced by 75 percent, and the time required to calculate the quarterly bonuses has been reduced by 50 percent.
The Iconixx Difference
MEASURABLE ROI
GOALS
AFTER ICONIXX
• Flexibility to change goals
• Integrated approval process
• Eliminate manual calculations
• Improved efficiency• Greater agility• Better reporting
BEFORE ICONIXX
SECTOR
INDUSTRY
SOLUTION
• Manual calculations of bonus structures
• Difficult to revise or update goals
• Limited reporting capability
Insurance
Group health care plans
Iconixx Incentive3420 Executive Center DriveSTE 250Austin, TX 78731877-ICONIXXwww.iconixx.com
