How Stantec Overcame the Challenges of Asymmetric Growth
To solve employee benefits needs in its widely varying international branches, a rising, multinational engineering contender finds the happy medium between local service and global reach.
WHEN CANADIAN ENGINEERING COMPANY STANTEC began growing abroad, it faced a daunting challenge: uneven growth between markets, with some branch offices employing hundreds while others had barely a handful. Where employee benefits were concerned, that meant some smaller offices would be underserved. An all-too-common dilemma for rapidly growing firms in this industry, and also in numerous others.
For better worldwide reach, Stantec tried two giant international employee benefits companies—Mercer and AonHewitt—but with unhappy results. The bureaucratic weight of those firms led to high costs for small-office tasks, as well as to slow, inflexible processes.
In 2004, Stantec engaged Asinta partner Alliant to handle its employee benefits in the United States. Impressed with that relationship, the organization employed more Asinta Partners for the rest of its nine international offices as well—except Barbados, where they chose to keep a great relationship with a local independent broker (Asinta allows that kind of flexibility). It all turned out to be a much better alternative.
Asinta Brings the Group to Bear
Through Asinta, Stantec has found a way to balance needs for personal service and global reach.“Asinta is more nimble, more forward thinking, more service driven than larger firms we’ve used,” says Stantec Compensation & Benefits Director De Ann Clark. “I get better treatment from local benefits suppliers abroad than I would if I approached each firm individually. Asinta assures us great service in every location, regardless of our size there, whether we have four people in Panama or two hundred in Dubai.”
U.S. Asinta broker Kevin Overbey explains. “Asinta combines bespoke service from independent brokers, but through a single, well-integrated source, which matters a great deal for multinational companies that have small branches as well as large ones.”
Let the Savings Begin
As important as more attentive service is, it must be accompanied by effective cost management, and so it has been for Stantec, particularly as the company grows through acquisitions.
After one Stantec acquisition, Asinta partners discovered a potentially costly flaw in the acquired company’s benefits plan, exposing Stantec unwittingly to high liability for employee disability.
In another case, an acquired firm in the United Arab Emirates saw a sudden 113% rise in medical costs, which Asinta cut nearly in half by adding a co-insurance feature that dramatically reduced needless doctor visits.
Today, Stantec is growing more international than ever, with offices spanning the globe. If you need an airport, a university or a water treatment plant, these are the people to call. Meanwhile, for their employee benefits, Stantec calls Asinta.
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Summary:
Growing Canadian engineering firm Stantec sought global reach for employee benefits, but with more attentive service than it had received from the largest international benefits firms.
Local brokers provided a good alternative for large international branches, but not for smaller ones that lacked economies of scale.
Asinta provided the service of local brokers, but at global scale, with more even attention to large and small offices.
Asinta discovers significant savings opportunities, reducing both premium costs and risk exposure, particularly in companies that Stantec acquires as it grows.
“Asinta is more nimble, more forward thinking, more service driven than larger firms we’ve used,” says Compensation & Benefits Director De Ann Clark. “I get better treatment from local benefits suppliers abroad than I would if I approached each firm individually. Asinta assures us great service in every location, regardless of our size there, whether we have four people in Panama or two hundred in Dubai.”
– De Ann Clark, Stantec Compensation & Benefits Director