Unlock the Door to Employee Retention With a Great Benefit Plan! Michael Nadler
Why Benefits? Attract quality staff Employee retention Increased productivity Improved morale Reduced absenteeism Encourage healthy workplace
Benefits Canada Survey (10/02) 49% of employees feel company benefits influenced their decision to join employer 73% of employees would not work for a company that did not offer benefits 44% of employees would change employers to improve benefits
Aventis Healthcare Survey 2004 72% of employees prefer benefits over salary increase to $8,000 85% of employees feel that their choice of employer is positively influenced by the company’s benefit plan
Importance of Wellness 68% of employees say that job makes them feel high levels of stress / anxiety Unhealthy workplace creates double the rate of heart / cardiovascular problems and higher rates of anxiety, depression, demoralization, alcohol and drug usage
Importance of Wellness Over 50% of employees experience role overload while trying to balance work / family leading to a 20% increase in absenteeism
Costs of Turnover 5 times annual salary for professional staff 20% of annual salary for lower level employees Source: Benefits Canada (02/02)
Considerations Corporate culture Demographics: Gender Age Single / family split
Types of Benefit Plans Traditional Set plan design Regular monthly premium contribution Flex Employees pick from benefits menu Employer provides capped contribution with balance paid by employee Spending Account Employer contributes set amount Employee claims against account with 1 year carry over
Pros Traditional Can budget for it All staff treated equally Pooling may temper rates Flex Staff customize to suit needs Spending Account Can claim for non-traditional expenses Equal employer contribution regardless of family status
Cons Traditional One plan for all Inflation pressure Flex Increased utilization Increased administration costs Overwhelming benefit decisions Spending Account Can exhaust account Create sense of entitlement
Funding Insured Administrative Services Only (ASO) Self insuring Retention Self insuring with monthly premium contribution Year end reconciliation
Pros Insured Regular premium contribution Limited liability ASO Only pay for claims plus administration plus taxes Reserves / inflation not a consideration at anniversary Retention Benefits of ASO with predictability of Insured
Cons Insured Inflation, reserves a consideration at renewal ASO Volatility in premium contribution Difficult to budget for Potential for substantial claim liability (notwithstanding stop loss) Retention Inflation, reserves a consideration at renewal Reconciliation
Summary Benefits are a helpful tool in attracting and retaining quality personnel and in creating a healthy workplace which in turn leads to reduced absenteeism, increased productivity and improved morale. When designing your plan keep corporate objectives in mind along with consideration given to demographics.
Summary COMMUNICATE
The Benefit Source Advantage Access to ALL insurers 17 years’ benefits experience No consulting fees On-going administration / claims assistance Pre-renewal forecasting Insurer negotiation at inception / renewal Regular market reviews ensure long term competitiveness
Other Services Individual Life Individual Disability Critical Illness Long Term Care Travel Medical Priority Access Medical Coverage Health & Welfare Trusts Business Travel Sports Policies Key man coverage Buy-sell funding Office overhead Accidental death & dismemberment Salary continuation plans
Thank You!!! Michael Nadler