The benefits of being flexible April 2012
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The benefits of being flexible April 2012

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Half day open training event held in Toronto.

Half day open training event held in Toronto.

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  • 1. The benefits of being flexible by Toronto Training and HR April 2012
  • 2. 3-4 Introduction to Toronto Training and HR 5-7 DefinitionsContents 8-9 10-15 Foundations of a benefits plan Communication 16-18 Advantages of flexible benefits 19-20 Disadvantages of flexible benefits 21-22 Outsourcing flexible benefits 23-25 Key areas that need to be assessed 26-27 The tax situation around flexible benefits 28-30 Project plan for flexible benefits 31-32 Implementing a flex plan 33-34 How flexible benefits can facilitate change 35-37 Determining what employees value 38-40 Questions which impact on strategy and design 41-43 Flex in the future 44-45 Drill 46-55 Case studies 56-57 Conclusion and questions Page 2
  • 3. Introduction Page 3
  • 4. Introduction to Toronto Training and HR• Toronto Training and HR is 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 event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
  • 5. Definitions Page 5
  • 6. Definitions 1 of 2Flexible benefitsCafeteria benefitsFlex plan Page 6
  • 7. Definitions 2 of 2TYPICAL BENEFITSLearning and developmentLifestyle optionsFinancial and legalHealth and wellbeing Page 7
  • 8. Foundations of a benefits plan Page 8
  • 9. Foundations of a benefits planHealth insurance for expenses not covered by yourprovincial planDental benefitsGroup life insuranceShort- and long-term disability plansRetirement savings plansVacation and other paid time off Page 9
  • 10. Communication Page 10
  • 11. Communication 1 of 5Brief (each time)Jargon-freeBrandedTailored to its audience: employees are interestedin matters affecting them personally, so the morea company can target the information individually,the more buy-in it will achieve Page 11
  • 12. Communication 2 of 5DirectChampioned: if someone known and respectedbelieves in the scheme and can put forward theircase study, others will buy in too Page 12
  • 13. Communication 3 of 5QUESTIONS TO ASK:What is the best way to design a unique brand andstyle?What needs communicating?Who are you communicating to?What media do you need to use?Who will be the communicator?What is the best timing?How can communication difficulties be overcome? Page 13
  • 14. Communication 4 of 5DEVELOPING A COMMUNICATION STRATEGY:Review current benefit awarenessEstablish preferences for benefit communicationExamine employee attitudes to flexibility inbenefits and the value/concerns they may haveregarding this issue Page 14
  • 15. Communication 5 of 5DEVELOPING A COMMUNICATION STRATEGY:Get it!Support it!Do it! Page 15
  • 16. Advantages of flexible benefits Page 16
  • 17. Advantages of flexible benefits 1 of 2Employees choose benefits they want and value,rather than having to accept unwanted and under-valued benefitsWhere a budget system is adopted, the cost ofbenefits is controlled betterEmployers and employees share responsibility forbenefitsEmployees can change their benefits as theirlifestyle changes Page 17
  • 18. Advantages of flexible benefits 2 of 2Employees participate in the design of their rewardpackageDual-career couples avoid the duplication ofbenefitsEmployers are seen as responding to employeedemands for flexibility Page 18
  • 19. Disadvantages of flexible benefits Page 19
  • 20. Disadvantages of flexible benefitsDanger of increasing costsProblem of valuing benefitsDiscounts may be lost if some employees withdrawComplex administrationNeed for financial counsellingTax implications Page 20
  • 21. Outsourcing flexible benefits Page 21
  • 22. Outsourcing flexible benefitsEnsure there are clearly defined reasons foroutsourcingEnsure contracts are drawn up wellEnsure a good but practical set of service levelagreementsEnsure the outsourcer provides a good set ofguarantees and performance bondsMake absolutely sure that the contract caters forall eventualities Page 22
  • 23. Key areas that need to be assessed Page 23
  • 24. Key areas that need to be assessed 1 of 2Supporting and enhancing the organization’smission statement and key prioritiesEmployee benefits reviewMarket issuesEmployees’ and employers’ prospectiveEmployment law issuesCommunications issuesProduct selection and mix Page 24
  • 25. Key areas that need to be assessed 2 of 2Administration, IT and outsourcingProject managementFinancial benefits, costs and risk analysisMonitoring and evaluation Page 25
  • 26. The tax situation around flexible benefits Page 26
  • 27. The tax situation around flexible benefitsClearly understand the current tax and socialinsurance positionFor each product selected, define precisely its taxtreatmentAssess mixing benefits together and the use ofsalary and bonuses to fund choicesUse modelling to find the best mixDevelop a clear, simple effective communicationstrategy specifically for tax Page 27
  • 28. Project plan for flexible benefits Page 28
  • 29. Project plan for flexible benefits 1 of 2Agreement of benefits program and items toincludeBenefit products and providers agreedSystem configurationPayroll feedEmployee data providedSecurity checksScheme booklets designed and printed Page 29
  • 30. Project plan for flexible benefits 2 of 2Communication documentation issued toemployees explaining the schemeTesting of siteSite signed off by clientSite signed off by administration teamGo live-enrolment period Page 30
  • 31. Implementing a flex plan Page 31
  • 32. Implementing a flex planDon’t provide too many optionsRepackage benefits to provide employees with thecoverage they need, but don’t break it down somuch that you’ll get “cherry-picking”Simplify the price/credit structureHave well-planned communication Page 32
  • 33. How flexible benefits can facilitate change Page 33
  • 34. How flexible benefits can facilitate changeRestructuring company care schemesIntegrating incompatible terms and conditionsafter mergers and acquisitionsIntroducing new payment systemsReinforcing cultural changes Page 34
  • 35. Determining whatemployees value Page 35
  • 36. Determining what employees value 1 of 2Is it tax-effective for the employee?Is the benefit not generally available outside ofwork?Does it enhance the company’s image andbranding? Page 36
  • 37. Determining what employees value 2 of 2Does it offer a discount pricing advantage?Does it add cost to the existing benefits plan?What is the impact on the total rewards packageof pay, benefits, career development and work/lifebalance? Page 37
  • 38. Questions which impact on strategy and design Page 38
  • 39. Questions which impact on strategy and design 1 of 2When are you looking to introduce the scheme?How will you be administering the scheme?What benefits do you currently provide (and atwhat levels), and who do you provide them for?What benefits must you provide in the future?What benefits do you want employees to havegoing forward and at what minimum levels?What benefits do your employees want? Page 39
  • 40. Questions which impact on strategy and design 2 of 2Who do you want to be able to select each of thebenefits?How much money will you give your employees tospend on their own benefits?How much of their own cash will employees beallowed to spend on their benefits?Who provides your existing benefits, and can orwill they provide benefits on a flexible basis? Page 40
  • 41. Flex in the future Page 41
  • 42. Flex in the future 1 of 2Fixed amounts for contribution to the premiumcost of additional group insurance, such as drug,dental, hospital and out-of-country medicalcoverage, paramedical and private duty nursingand optional life insuranceLifestyle accommodation benefits, such as flexiblework arrangements, personal and professionalgrowth opportunities, work/life balance options,wellness programs, flexible work hours andvacation purchases Page 42
  • 43. Flex in the future 2 of 2A plan to cover medical and dental expensesdeemed eligible by the Canada Revenue Agency,such as cosmetic dental servicesAdditional voluntary contributions funded by theemployee, with the employer contributing a fixedpercentage Page 43
  • 44. Drill Page 44
  • 45. DrillPage 45
  • 46. Case study A Page 46
  • 47. Case study A Page 47
  • 48. Case study B Page 48
  • 49. Case study B Page 49
  • 50. Case study C Page 50
  • 51. Case study C Page 51
  • 52. Case study D Page 52
  • 53. Case study D Page 53
  • 54. Case study E Page 54
  • 55. Case study E Page 55
  • 56. Conclusion and questions Page 56
  • 57. Conclusion and questionsSummaryVideosQuestions Page 57