Getting the benefits from benefits May 2011
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Getting the benefits from benefits May 2011

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Half day interactive open workshop in Toronto on employee benefits.

Half day interactive open workshop in Toronto on employee benefits.

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    Getting the benefits from benefits May 2011 Getting the benefits from benefits May 2011 Presentation Transcript

    • Getting the benefit from benefits
      by Toronto Training and HR
      May 2011
    • Contents
      3-4 Introduction to Toronto Training and HR
      5-6 Why have an employee benefits plan
      7-8 Most common employee benefits provided
      9-14 What is typical?
      15-21 Critical illness insurance
      22-24 Employee assistance programs
      25-26 Drill
      27-30 Retirement plans
      31-36 What do people REALLY think about pensions?
      37-38 Ethical pensions
      39-44 Outsourcing benefits
      45-48 Overtime…for managers?
      49-50 Benefits communication
      51-52 Selecting a benefits provider
      53-54Making benefits effective
      55-58 Case studies
      59-60 Conclusion and questions
      Page 2
    • Page 3
      Introduction
    • Page 4
      Introduction to Toronto Training and HR
      Toronto Training and HRis a specialist training and human resources consultancy headed by Timothy Holden
      10 years in banking
      10 years in training and human resources
      Freelance practitioner since 2006
      The core services provided by Toronto Training and HR are:
      • Training course design
      • Training course delivery
      - Reducing costs
      • Saving time
      • Improving employee engagement & morale
      • Services for job seekers
    • Page 5
      Why have an employee benefits plan?
    • Page 6
      Why have an employee benefit plan?
      EMPLOYERS PROVIDE BENEFITS TO EMPLOYEES:
      Comply with provincial and government regulations
      Motivate and support existing workers, particularly the high-performers that are important to retain
      Help attract new employees
      Strengthen the long-term commitment of employees to the organization
      Reduce stress associated with health and financial difficulties
      Improve the mental and physical health of employees
    • Page 7
      Most common employee benefits provided
    • Page 8
      Most common employee benefits provided
      Medical insurance
      Dental insurance
      Vision care
      Group-term life insurance
      Disability insurance
      Critical illness
      Employee assistance plan
    • Page 9
      What is typical…medical insurance
    • Page 10
      What is typical…medical insurance
      Prescription or prescribed drugs
      Prescription eye glasses
      Contact lenses
      Professional services and paramedical practitioners
      Semi-private hospital room
      Out of province and out of country hospital and medical expenses
      Ambulance, lab charges
      Hearing aids
      Medical supplies
      Prosthetics, appliances and medical equipment
    • Page 11
      What is typical…dental insurance
    • Page 12
      What is typical…dental insurance
      Diagnostic and preventative treatment
      Minor restorative treatments
      Major restorative treatments
      Orthodontics
    • Page 14
      What is typical…vision care
    • Page 6
      What is typical…vision care
      Prescription eye glasses
      Contact lenses
      Laser eye surgery
    • Page 15
      Critical illness insurance
    • Page 16
      Critical illness insurance 1 of 6
      WHY IS IT IMPORTANT?
      Disability insurance replaces income but is insufficient for the added burden of medical expenses
      Group health coverage has restrictive limitation and maximums
      Social medical care is eroding and cannot be relied upon
      Personal and retirement savings have intended purposes other than medical expenses
      Most critical illness victims make a full recovery after a lengthy expensive treatment period
    • Page 17
      Critical illness insurance 2 of 6
      CANADIAN STATISTICS
      1 in 2 will contract heart disease
      1 in 2 heart attack victims are under age 65
      1 in 3 will develop some form of life threatening cancer
      1 in 4 currently suffer from cardiovascular disease
      70% of open heart surgery operations each year are coronary bypasses
      1 in 4 will suffer kidney failure
      1 in 20 run the risk of having a stroke before age 70
      1 in 500 people will suffer from multiple sclerosis
    • Page 18
      Critical illness insurance 3 of 6
      CANADIAN STATISTICS
      Heart attack, cancer and stroke are the three most common diseases
      1 in 4 will contract cancer or heart disease before they retire
      Two-thirds of the cost of cancer treatment is not covered by provincial medical plans
      30% of cancer victims are completely cured
      75% of stroke victims survive the initial occurrence
      95% of heart attack victims survive the initial occurrence
    • Page 19
      Critical illness insurance 4 of 6
      CONDITIONS THAT COULD BE COVERED
      Cancer (life-threatening)
      Heart attack stroke (cerebrovascular incident)
      Coronary artery by-pass surgery
      Multiple sclerosis
      Kidney failure (end-stage renal disease)
      Major organ transplant
      Paralysis (two or more limbs)
    • Page 20
      Critical illness insurance 5 of 6
      CONDITIONS THAT COULD BE COVERED
      Deafness
      Blindness
      Parkinson’s Disease
      Alzheimer’s Disease
      Motor Neurone Disease
      Permanent total disability
      Severe burns
    • Page 21
      Critical illness insurance 6 of 6
      WHAT TO LOOK FOR IN CRITICAL ILLNESS COVERAGE
      Clear definitions (medical terminology)
      No restrictions at the time of claim, for instance HIV exclusions
      Comprehensive scope of coverage
      Lump sum benefit payment for claims
    • Page 22
      Employee assistance programs
    • Page 23
      Employee assistance programs 1 of 2
      Absenteeism
      Productivity
      Attrition
      Disability
    • Page 24
      Employee assistance programs 2 of 2
      FEATURES TO LOOK FOR
      Direct access
      Quick response
      Professional
      Confidentiality
      Off site
      Direct treatment
      Appropriate coverage
    • Page 25
      Drill
    • Page 26
      Drill
    • Page 27
      Retirement plans
    • Page 28
      Retirement plans 1 of 3
      DEFINED BENEFITS PLANS
      Advantages
      Disadvantages
      DEFINED CONTRIBUTIONS PLANS
      Advantages
      Disadvantages
      GROUP REGISTERED RETIREMENT SAVINGS PLANS
      Advantages
      Disadvantages
    • Page 29
      Retirement plans 2 of 3
      WHICH PLAN IS BEST FOR OUR ORGANIZATION?
      Amount to spend
      Internal resources and people available to manage and administer the plan
      Risk of guaranteeing a set pension (Defined Benefit) or leaving the responsibility for the performance of the retirement funds (Defined Contribution)
    • Page 30
      Retirement plans 3 of 3
      POINTS TO REMEMBER
      Changes in life expectancy, the economic downturn and mobility in the labour market have contributed to the shift from defined benefit (DB) to defined contribution (DC) schemes
      Many employees perceive DB plans to be of greater value than DC, but this is not necessarily so-low DB accrual rates may produce a lower return than good contribution levels to a DC plan
      Employers should clearly explain the good points of moving to a DC plan, such as the employer contributions
    • Page 31
      What do people REALLY think about pensions?
    • Page 32
      What do people REALLY think about pensions? 1 of 5
      It is a valuable recruitment tool
      It is a valuable retention tool
      As an organization, they feel responsible for employees‘ long-term financial wellbeing
      There is too much regulation involved in running a pension scheme
      They have to offer a pension scheme because competitors do
    • Page 33
      What do people REALLY think about pensions? 2 of 5
      Pension schemes have become too expensive to run
      Pensions are the benefit that most employees want above all other benefits
      Employees have lost trust in employer-provided pension schemes
      Most employees would prefer to forgo the pension scheme and have more basic pay
    • Page 34
      What do people REALLY think about pensions? 3 of 5
      REASONS PEOPLE DON’T JOIN
      Affordability
      Other financial demands and interests
      Apathy/inaction
      Lack of understanding about pensions generally
      Lack of interest
      Lack of awareness about pensions
      Lack of trust in pensions
      Not seen as a good investment
    • Page 35
      What do people REALLY think about pensions? 4 of 5
      ENSURING PEOPLE HAVE AN ADEQUATE PENSION IN RETIREMENT
      Actively encourage pension scheme membership
      Ensure employer contributions are adequate
      Actively encourage employees to make adequate contributions
      Proactively educate employees on pensions
      Offer access to independent financial advice
      Include pensions as part of total reward statements
      Operate compulsory minimum contributions for employer and employees
    • Page 36
      What do people REALLY think about pensions? 5 of 5
      MEASURING RETURN ON INVESTMENT
      No action taken
      By looking at pension scheme take-up
      By including it in a staff satisfaction survey
      By looking at retention
      By looking at recruitment
      By including it in a staff engagement survey
      They do not but plan to in the future
    • Page 37
      Ethical pensions
    • Page 38
      Ethical pensions
      Ethical investment funds enable people to invest pension contributions in companies that have ethical practices
      More employers are offering an ethical pension fund option
      A fund can actively seek to invest in organizations considered to be ethical, or screen out those considered to be involved in unethical activities
      Positive criteria include environmental conservation, equal opportunities and animal welfare. Negative criteria can include health and safety breaches, poor relations with employees and customers, and nuclear power
    • Page 39
      Outsourcing benefits
    • Page 40
      Outsourcing benefits 1 of 5
      COSTS GETTING REDUCED
      Maturing industry
      Increased competition
      Offshoring
      COST OF INTERNAL ADMINISTRATION
      Internal administrative people
      IT expenses
    • Page 41
      Outsourcing benefits 2 of 5
      RISK CONSIDERATIONS
      Maturing industry
      Increased competition
      Offshoring
      COST OF INTERNAL ADMINISTRATION
      Staffing risk
      Systems risk
      Database risk
      Error risk
    • Page 42
      Outsourcing benefits 3 of 5
      ADMINISTRATION OPTIONS
      Online sites providing access to tools and resources
      Expanded capacity to ensure consistent service
      CHALLENGES TO INTERNAL BENEFITS ADMINISTRATION
      Plan design and security changes that impact administration requirements
      New employer groups or plans added through acquisition
      High transaction volumes driven by a reduction
      in force or location closure
      Administrative changes driven by new legislative or regulatory compliance
    • Page 43
      Outsourcing benefits 4 of 5
      IS OUTSOURCING RIGHT FOR YOUR ORGANIZATION?
      Employee numbers are limited, so they struggle to keep up during annual enrolment or when other new changes are implemented
      One or two people on the HR team hold much of the historical knowledge
      The system (or worksheet) currently used is out
      of date and difficult to modify
      It’s difficult to get support from the IT department
      Records are not centralized—some in paper files,
      some in other databases
    • Page 44
      Outsourcing benefits 5 of 5
      IS OUTSOURCING RIGHT FOR YOUR ORGANIZATION?
      The organization struggles to keep administration
      consistent with the most recent law changes
      Calculation or administration errors have led to costly legal settlements
      It is desirable for employees to have online tools so they could model their own pension estimates instead of calling HR
      Employees can’t get daily work done because of participant calls
    • Page 45
      Overtime…for managers?
    • Page 46
      Overtime…for managers? 1 of 3
      Supervision of other employees
      Role in running the organization
      How much the individual earns
    • Page 47
      Overtime…for managers? 2 of 3
      IN SUMMARY-employees may still have a right to receive overtime even if they’re considered managers under the employment standards laws if:
      they’re covered by the mandatory overtime provisions of the employment standards law; and/or
      overtime is required under the terms of the employment contract or collective agreement.
      Consider not just what the employment
      standards law says but what the contract requires
    • Page 48
      Overtime…for managers? 3 of 3
      POSITION IN ONTARIO
      Person “whose only work is supervisory or managerial in character and who may perform non-supervisory or non-managerial tasks on an irregular or exceptional basis” exempt from overtime; and
      regulations don’t define “supervisory or managerial” (Exemptions, Special Rules & Est. of Minimum Wage Reg., Sec. 8(b)).
    • Page 49
      Benefits communication
    • Page 50
      Benefits communication
      Old approach
      New approach
      People get distracted and forget; repetition, across time, is vital
      Targeting fuels motivation and improves outcomes
      Wants are more important than needs
      Your “hero” is the customer, not the plan or program
    • Page 51
      Selecting a benefits provider
    • Page 52
      Selecting a benefits provider
      AT THE MEETING
      Assess your organization and needs so that they can recommend an appropriate benefits structure
      Explain in detail the costs, detailed benefits and admin options available
      Help you to implement the benefits plan
    • Page 53
      Making benefits effective
    • Page 54
      Making benefits effective
      Consider your objectives
      Tune into employees
      Agree your main message
      Develop a strong campaign concept
      Make it personal
      Communicate clearly and concisely
      Ensure data is up to
      Build momentum and launch with a bang!
      Follow up and send reminders
    • Page 55
      Case study A
    • Page 56
      Case study A
    • Page 57
      Case study B-Oracle
    • Page 58
      Case study B
    • Page 59
      Conclusion & Questions
    • Page 60
      Conclusion
      Summary
      Questions