1. Attracting and Retaining Excellent Employees: Benefits Turn the Key
Attracting and Retaining Excellent Employees: Benefits Turn the Key! Mike Robinson Manager, Consultant Support Account Development Department Aflac Worldwide Headquarters

2. Understanding the Three Basic Types of Employee Benefits
No Choice - Mandated by Law
Employer Owned – Employee
can choose to participate
or not
Total Choice- Employee chooses to participate and to what extent
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3. Are Benefits Important?1
Approximately 48% of small businesses offer health insurance to their employees.1
41% of firms with fewer than 10 employees offered health insurance.
78% of those with 20 or more employees offered health insurance.
1 National Compensation Survey, 2004
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4. Are Benefits Important? (continued)
Poll participants indicated three key reasons why they offered health insurance:
“It’s the right thing to do”.
“To attract and retain employees.”
The ability for the owner to get coverage through the business.
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5. Major Reasons Employers Offer Health Insurance 2
Responses from owners with 1-9 employees:
Helps employee recruitment 61%
Decreases turnover 47%
Increases employee productivity 43%
Employees expect or demand it 41%
2 AON Employer Benefit Survey 2005
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6. What Kind of Insurance is Offered?3
Employee health insurance (61%)
Disability insurance (41%)
Life insurance (29%)
Dental insurance (24%)
3 NFIB 2003 Business Poll on Compensating Employees
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7. The Basics: Group Health Insurance “Traditional indemnity plans”
No restrictions on providers.
Typically the most costly type of health insurance for the employer and employees.
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8. The Basics: Group Health Insurance “Other Plan Options” include:
HMOs
PPOs
POSs
EPOs
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9. Group Disability Insurance
Short-term disability:
Long-term disability:
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10. The Basics: Voluntary Insurance
Primarily sold at the worksite through payroll deduction.
Employees typically pay 100% of the premiums.
Gives employers an opportunity to round out a benefits package at little or no cost to them.
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11. Voluntary Benefits can help with “out-of-pocket” claim costs:
Deductibles and co-payments.
Extra fees for employees who get treatments out-of-network.
Food, lodging, and travel to special treatment centers.
Loss of income.
Charges beyond “reasonable and customary”.
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12. Why Employees Like Voluntary Benefits
Convenience of payroll deduction.
More choices and control.
Meet individual and family needs.
Guaranteed Renewable & Portable.
Comfortable with employer’s due
diligence; gives them feeling of security.
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13. Most common types of Voluntary Insurance Products:
Supplemental Life
Disability
Accident (Expanded)
Cancer
Dental
Vision
Hospital Confinement
Long-Term Care
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14. Think About It…
If you do not offer group health and voluntary insurance benefits, where will employees get the money for medical care, emergencies, and income replacement?
Savings?
A loan?
Family?
Employer (You)?
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15. Selecting a Provider (Carrier): What Should I Ask?
What is the company’s financial strength?
A.M. Best, Standard & Poor’s
How is the company recognized?
Awards and industry recognition
How many times has the company changed rates on its policies?
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16. Selecting a Provider (Carrier): What Should I Ask? (continued)
How quickly does the company pay claims?
How are funds distributed?
Does the company encourage preventative care?
What kind of service will we get?
What are the monthly, annual, and lifetime limits?
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17. Selecting a Provider (Carrier): What Should I Ask? (continued)
Are policies portable?
Are policies guaranteed-renewable?
How far back does the company go when underwriting applications?
What is the definition of “disability”?
What is the benefits (loss) ratio?
What is the operating expense ratio?
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18. The Right Formula for Employers
Start with the basics (core benefits).
Increase value without increasing your cost (voluntary benefits).
Help employees save tax money with flex plans, HSAs, and HDHPs.
Choose your providers (carriers) wisely.
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19. Thank You
Mike Robinson Manager, Consultant Support Account Development Department Aflac Worldwide Headquarters