1. mproved recruitment, increased staff loyalty and
satisfaction, higher productivity — all are compelling
reasons for you to provide robust employee benefits.
What is the true value of health and
wellness benefits, to you and your
employees alike? Why is a retirement
savings plan such an important piece
of compensation? At a time when the
workplace includes four generations,
how can you tailor benefits to various
demographics? And how can you
rely on technology to both ease the
administrative burden of benefits and
communicate with plan members?
The answers can open up oppor-
tunities to engage employees and
help your business turn its benefits
package into a genuinely competi-
tive edge.
GrowYour
Business with
Group Benefits
Grow Your Business with Group Benefits 1
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2. There’s a better way
to do benefts.
Let ADP be your benefts manager.
Call ADP today and talk to our benefts experts:
1-866-622-8153 www.adp.ca/BetterWay
Benefts management could be costing your business more than you think.
One data entry error can expose your organization to fnes, penalties and
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With ADP’s Benefts Manager technology your payroll and benefts information
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All insurance products are offered and sold only through licenced insurance agents of ADP Canada Insurance Agency Inc., a wholly owned subsidiary of ADP Canada
Co. Certain products and services may not be available in all provinces. The ADP logo and ADP are registered trademarks of ADP, Inc. Copyright © 2013 ADP, Inc.
Use
technology
to ease benefits
administration
For businesses, partnering with a provid-
er that uses technology to more efficient-
ly manage benefits administration does
more than save valuable time; it can also
keep benefits accurate and compliant,
and reduce risk to the business.
In benefits management, inaccurate
data entry is common, explains David
McIninch, vice-president, marketing,
with ADP Canada in Toronto. It’s under-
standable when you consider how many
steps can exist between the employer’s
payroll and HR systems of record, and
the insurance company’s systems.
For example, a business may use a
broker or third-party administrator
(TPA) to off-load some benefits adminis-
tration.That requires taking information
from its payroll/HR system and send-
ing a copy to the TPA, creating a new
copy of the data.Then the TPA, or the
business, will create another new copy of
the data by entering it in the insurance
company’s administration system. Finally,
the insurer may create yet another new
copy to send to its billing systems.
McIninch says that in working with
clients,ADP has identified 62 manual
steps to manage the average employee’s
benefits, from hire to retire.At each
step, data is sent and transcribed into
the new systems.Any glitches can mean
the insurance company’s records will be
out of sync with the employer’s records.
As McIninch notes, if an employee
makes a claim during the period that
the two data records aren’t 100% in
agreement, the employer could be left
with the responsibility to pay any short-
fall in the claim. In other words, he says,
the chain of custody is broken today.
When managing your data and out-
sourcing your benefits administration,
it’s vital to focus on how technology can
eliminate errors or delays.“You should
be looking for systems that store pay-
roll, HR and benefits in a co-ordinated
way, and for the ability to connect that
information directly to the insurance
carrier’s system,” says McIninch.
“You want to minimize the touch
points for administration,” adds Sydney
Pereira, director, ebusiness, group
benefits and retirement solutions, with
Manulife Financial,Waterloo, Ont.
In benefits administration, today’s
technology can do more than ensure
accuracy downstream — it can also
help employers communicate with
their own employees.
Typically, employees will use plan
member sites to submit claims online, get
the status of claims, check on coverage
details, see how much money is left in the
healthcare spending account, etc. Pereira
says businesses should look for insurance
carriers whose member sites go beyond
those basic functions, and include infor-
mation tailored to employees’ needs.
For instance,some carriers can add
customized components,such as a message
centre or a learning centre.That allows em-
ployers to convey administrative informa-
tion (e.g.,enrolment periods),news (e.g.,an
upcoming health and wellness week) and
tips (e.g.,healthy living practices).
McIninch says including such com-
munications on the insurer’s portal
can strengthen the business’s brand as
a caring employer.“It’s important to
look at what your carrier can seamless-
ly offer,” he says. ■
ow much more productive could you be with an extra
month each year? According to research from
ADP Insurance Solutions, small business owners in
Canada spend an average of 4.8 weeks per year on
paperwork related to benefits, enrolling employees, reconciling
bills and other administrative details.
Grow Your Business with Group Benefits 3
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3. “If you want to attract and retain
employees, showing concern for
their preparedness for retirement,
and your willingness to contribute to
their plan, can generate strong loyal-
ty,” says Marc Avaria, vice-president,
group small business, with Manulife
Financial in Waterloo, Ont.
Canadian employees agree. A 2010
Environics survey found that 89% of
people want workplace-based retire-
ment savings programs made available
to all workers. Four in 10 workers
(41%) would consider changing to an
employer that offered one.
Despite these sentiments, the
adoption of retirement plans
remains relatively low compared to
adoption of health benefits plans
(which are offered by 47% of the
small businesses surveyed, reports
Manulife Financial’s 2013 survey).
Teresa Norris-Lue, vice-president,
group benefits and retirement, with
Can pooled registered pension plans (PRPPs)
be the answer for the large number of people
in smaller businesses who lack access to a
retirement savings plan? In 2012, the federal
government of Canada passed the Pooled
Registered Pension Plans Act, creating a new
vehicle for workplace savings. Contributions
will be invested in a larger pool of funds to take
advantage of efficiencies of scale.
Pooled registered pension plans are tar-
geted at small and medium-sized businesses,
as well as self-employed business owners.
Individuals can be enrolled in a PRPP by
an employer who chooses to participate
in the plan. Self-employed Canadians and
individuals whose employers choose not to
participate can open a PRPP account by
directly approaching a PRPP administrator.
Pensions fall under provincial jurisdiction,
so each provincial government is determining
how to implement and manage PRPPs. The
new plans will provide:
➔➔ Low management fees by pooling partici-
pants’ investments.
➔➔ Simpler administration than other pension
plans, making it easier for employers to
offer them.
➔➔ Flexibility and tax deductions for employee
and employer contributions.
There are already options available for
private sector employers, such as group
RRSPs. However, “PRPPs will be a low-
cost, easy-to-manage workplace savings
plan for all small and mid-size employers
in Canada,” says Nancy Campbell, AVP,
small business product & marketing,
group benefits and retirement solutions,
with Manulife Financial in Waterloo, Ont.
One reason why the proposed
PRPPs should be easier to implement: “The
fiduciary responsibility that usually lies with
the employer is transferred to the financial
institution offering the plans,” says Teresa
Norris-Lue, vice-president, group benefits
and retirement, with Cowan Insurance in
Cambridge, Ont.
Norris-Lue suggests the PRPP design
would be more impactful if it included
mandatory participation, a required employer
contribution, and a cost structure that allowed
for employee education and support.
A 2012 workplace savings survey by
Manulife Financial found that 80% of
Canadians believe that saving through a
PRPP would make it easier for them to
reach their retirement goals. For more on
PRPPs, visit www.cra-arc.gc.ca/tx/prpp-
rpac/menu-eng.html or www.prpp.com/.
Cowan Insurance in Cambridge,
Ont., suggests that younger com-
panies are more focused on getting
to the next stage than on adding
another workplace perk. The small
business survey found that 13%
of companies in the start-up and
growth phase offer retirement
plans, versus 22% of established
small businesses.
Many employers may be reluc-
tant to introduce retirement plans
because they perceive barriers,
such as affordability. Companies
with younger workforces might also
believe that this group doesn’t see
retirement benefits as a high priority,
adds Norris-Lue. She and Avaria
agree that companies need to view
retirement plans as another spoke in
the health and wellness wheel.
“Maybe we should talk about
savings rather than retirement.
A group RRSP is simply a tax-
deferred savings plan,” says Norris-
Lue. “Lots of people are under
financial stress, whether they’re
worried about making ends meet,
or having enough saved for their
first mortgage or their retirement.
If you have someone at work under
any stress, they may be present but
not functioning as productively as
they could.”
Just as traditional group benefits
are focused on physical and mental
wellness, retirement savings plans
are contributing to financial
wellness. All are critical to pro-
tecting employees.
“Health and well-being isn’t just
about prevention, and coverage of
drugs and medical,” says Avaria.
“People can face a very unhealthy
situation financially if they haven’t
saved well.”
How affordable are retirement
plans? The expense is really up to
the employer. As Norris-Lue notes,
investment management fees and
other administrative fees can be
rolled up together and covered on
the employee end. With some group
RRSPs, only employees contribute,
though she says that “when the
employer doesn’t have any skin in
the game, it’s not always easy to
convince the employee of the merits
of the plan.”
If the employer does contribute to
a retirement plan, the amount can
be any percentage of salary, or the
employee’s contribution. Employers
have to clearly convey to each
employee the value of the overall
compensation package. In many
cases, staff might place as much, or
more, of a premium on the employ-
er’s RRSP contribution as they do
on a salary increase.
Along with offering a retirement
savings plan, employers can promote
financial wellness by adding a com-
munication program. In the same
way that companies might augment
a health benefits package with talks
on nutrition or fitness, they can
educate employees on topics, such as
financial planning, credit and debt
management, and estate planning.
“If there’s a component of
financial literacy, then retirement
savings plans will be even more
effective. Don’t just offer the plan in
The PRPP Option
Retirement plans
generate loyalty
isolation,” says Norris-Lue.
As Avaria notes, “Canadians are
starting to realize that the dreams
they had for retirement are not
going to be possible unless they
pay more attention to savings.”
Only 31% of working Canadians
feel they will have enough savings
put away for retirement to main-
tain their current lifestyle (2012
National Workplace Savings Survey,
Manulife Financial).
By providing some form of long-
term savings plan beyond present-
day health benefits, small businesses
can position themselves as more
compassionate employers.
“Employees will feel that the com-
pany is taking care of them, so they
can have a vibrant retirement,” says
Avaria. “That’s a powerful statement
about the kind of business you run.” ■
s a business owner, how much does your responsibility
to employees extend beyond their days with the company?
In the 2013 Manulife Financial Small Business Research Report,
54% of company decision-makers said the financial
security of employees who retire reflects on the firm and them personally.
Yet, only 19% of all small businesses surveyed offer a retirement plan.
Health and
well-being
isn’t just about
prevention,
and coverage
of drugs and
medical. People
can face a very
unhealthy situation
financially if
they haven’t
saved well.
—Marc Avaria, vice-president,
group small business, Manulife Financial
Canadians
are starting
to realize that the
dreams they had
for retirement
are not going
to be possible
unless they pay
more attention
to savings.
—Marc Avaria, vice-president,
group small business, Manulife Financial
4 Grow Your Business with Group Benefits Grow Your Business with Group Benefits 5
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4. Group Retirement Solutions and Group Benefts products are offered through Manulife Financial (The Manufacturers Life Insurance Company). ©2013 The Manufacturers Life Insurance
Company. All rights reserved. Manulife, Manulife Financial, the Manulife Financial For Your Future logo, the Block Design, the Four Cubes Design and strong reliable trustworthy
forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affliates under license.
As you a o
you
a
busi
Ma
o visit us at
Great employees help your business
succeed. Offering employee benefts,
such as health coverage and workplace
savings, is one of the smartest ways to
attract good people.
When employees’ needs are being
met, they are more engaged, more
productive and more committed long-term
members of your team. They’re the kind
of employees who help you win more
customers, improve proftability and achieve
your goals.
Benefts aren’t just for big business,
they’re for smart business.

5. To avoid gaps,
employers are
seeking a hybrid
approach. Everyone
can still access
core elements, such
as dental, drugs,
life and disability,
yet plans can
be modular,
with flexibility
in healthcare
spending
accounts.
The 2012 Sanofi Canada Healthcare
Survey found that 63% of plan mem-
bers think more positively of their
employers because of their health
benefits. Moreover, 60% call their
benefits a strong incentive to stay with
their current employers.
While employees value the coverage,
businesses that offer strong benefits
derive their own value. In an 2012 ADP
Insurance Solutions survey of Canadian
small businesses, 80% of respondents
mentioned getting and keeping the
right people as a major reason to offer
benefits.Almost two-thirds of companies
cited improving employee productivity
and reducing absenteeism.
A 2010 Harvard study of the literature
on workplace wellness programs found
that about half the programs cut absentee-
ism by 1.7 days per employee,and half by
1.9 days. For every five employees,that’s
almost two work weeks.Other studies
note that companies with strong wellness
programs,of which benefits are a key part,
have higher revenues per employee.
While there is a fundamental busi-
ness case to offer appealing benefits,
the ADP survey found that employers
often have more personal reasons.
High on the list of driving forces were
ensuring employee health and wellness,
protecting employees and their families
from catastrophic events, and sup-
porting employees in quickly returning
to work after an illness.
There’s much to be said for the mater-
nal/paternal instinct to provide benefits
and the peace of mind it generates for
employees.“Benefits programs help tie
employees back to their employers,”
says Dave Shepley, director, disability
operations, group benefits, with Manulife
Financial.“They provide a sense of sec-
urity and belonging:‘My company thinks
I’m important.’”
The altruistic reasons behind benefits
can also pay off. In the 2011 Manulife
Financial Small Business Research
Report, 76% of small businesses said
taking care of employees inspires them
to work harder.
Beyond reimbursement,
focus on prevention
Beyond the traditional role of employ-
ee benefits, research shows that people
are receptive to the workplace playing
a greater role in their personal health.
The 2013 Sanofi Canada Healthcare
Survey revealed that 69% of plan mem-
bers say their employers should do more
to help prevent disease,illness and injury
among employees,on top of paying for
treatment.Employers feel even more
strongly about this — 91% agree that they
should do more in the area of prevention.
Yet, there’s a major disconnect.
According to the 2013 Manulife
Financial Small Business Research
Workplaces feature four generations:
the 20-somethings in GenY,the 30- and
40-year-olds of Gen X,baby boomers
and the traditionalists (65 plus).Every
generation values benefits,but one size
doesn’t fit all.
To avoid gaps,employers are seeking a
hybrid approach.Everyone can still access
core elements such as dental,drugs,life
and disability,yet plans can be modular,
with flexibility in healthcare spending
accounts.“You embed options in the plan
design,and look at mixing and matching,”
says RickTessier,chief underwriter,with
ADP Insurance Solutions inToronto.
By learning what makes each demo-
graphic tick,owners can offer the right
benefits and messaging.Some insight:
➔➔More than any generation, Gen Y
enters the workforce with high expect-
ations, says job site monster.ca.They
want a workplace that offers oppor-
tunities to learn and grow, without be-
ing rigid.As monster.ca reports, 46%
of first-time employees plan to stay
with their first employer for under two
years. To generate loyalty from Gen
Y, workplaces may have little time
to show loyalty themselves. Benefits,
which Gen Y is minimally informed
about, are part of that.
➔➔As baby boomers retire, their Gen X
colleagues will move up. Retaining
Gen X staff is crucial.A September
2013 study by LIMRA (a global
research firm) says Gen X worries
more about retirement security than
younger and older generations. Gen X
workers also value flex work arrange-
ments, reports Barclays Corporate
& Employer Solutions in the UK
(“Talking About My Generation:
Exploring the Benefits Engagement
Challenge,” September 2013).
➔➔Boomers have much to add in
experience and institutional wisdom.
Many need to work longer to recoup
retirement investments lost in the re-
cession, so benefits and savings plays
are key.A McKinsey & Company
report (“Are Canadians Ready for
Retirement,”April 2012) says boom-
ers in the higher income categories
are less on track for retirement than
any other incomes and age groups.
➔➔The Vanier Institute of the Family
notes that the labour force partici-
pation of Canadians 65-plus has
nearly doubled over the past decade
(“Working Seniors in Canada,”
September 2013). More than 25%
of Canadians expect to work past
65 because they need or want to.
Traditionalists, such as boomers,
are at higher risk of serious/chronic
health conditions.Along with benefits,
the traditionalist generation is drawn
to flex and part-time schedules as
they move towards retirement.
AsTessier notes,in any company,some
employees might prefer coverage for
blood pressure pills,others coverage for
designer eyeglass frames.By providing a
benefits menu that resonates with their
target demographics,employers can
remain competitive.
“Select an advisor who can provide
sophisticated analytics on the prevalence
of choices within your organization and
like organizations,”saysTessier.“That can
help you make informed decisions.” ■
ver go to a restaurant with the extended family? You might share
appetizers and dessert, but for the main course, grandma, mom
and dad, teenage big sister and kid brother will likely order their
own main meal. Tastes and appetites often differ with age.
Workplace benefits
deliver healthy
results
ant to recruit, retain and reward employees?
Meaningful work and attractive wages are
important, but never underestimate the
power of benefits.
While employees
value the
coverage, businesses
that offer run
up benefits
derive their
own value.
Avoid the
generation gap
8 Grow Your Business with Group Benefits Grow Your Business with Group Benefits 9
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6. Benefits can be
fluid. Once you
introduce benefits,
it’s vital to regularly
review and analyze
your plan with a
benefits provider,
looking at elements
such as costs,
usage, the plan’s
competitive position
in the marketplace,
and employee
trends and
preferences.
however, businesses don’t have a
clear picture of that value, or what
they could be doing to improve
their offerings.
The ADP survey found that only
17% of small businesses determine
their benefits based on benchmarks
or industry standards. That’s one
reason why less than two-thirds of
small business owners and executives
(62%) say their benefits plans do
not completely satisfy their HR and
business objectives.
“Look at your needs versus nice-
to-haves and align them with your
benefits program,” says Mensch.
Benefits can be fluid. Once you
introduce benefits, it’s vital to regularly
review and analyze your plan with a
benefits provider, looking at elements
such as costs, usage, the plan’s competi-
tive position in the marketplace, and
employee trends and preferences.
To understand and increase value,
companies can track a combina-
tion of hard measures, for example,
turnover, retention, absenteeism,
productivity, revenue changes and
employee feedback.
Employee feedback is important,
both before introducing benefits and
after, to assess reaction. Some key
questions to ask: What types of bene-
fits are priorities? Which new benefits
are desired? Which benefits could em-
ployees shed if coverage became too
expensive? How willing are employees
to pay a higher share of costs instead
of seeing their benefits reduced?
This information can be invaluable in
determining whether current benefits
are hitting the mark, assessing how en-
gaged employees feel and shaping deci-
sions on revamping packages. Listening
to the feedback also makes employees a
partner in their own benefits, increases
buy-in and can, perhaps, reduce costs.
“If you’re going to put in a wellness
campaign and invest in employees,
you need to know what’s driving
them,” says Shepley.
Finally, to receive full value from
benefits, communicate the value to
employees. That includes promoting
the range of offerings, providing
health and wellness messages and
initiatives, and ensuring that staff under-
stand their total compensation —
the complete picture of what the
employer is investing in them.
Ultimately, when employees feel
healthier and realize their employ-
ers take a healthy interest in their
work and personal life, it can lead to
healthier business results. ■
Report, only 11% of small businesses
offer some sort of wellness program (e.g.,
subsidized gym memberships, weight loss
programs, smoking cessation programs,
etc.).That’s the proactive “upstream”
prevention and intervention component.
“You need to look at what
you have in place besides paying
for drugs,” says Laura Mensch,
vice-president of ADP Insurance
Solutions in Toronto. “Group in-
surance and reimbursement is the
downstream component.”
When introducing a plan, keep in
mind that Mensch says more em-
ployees are also welcoming their
company’s help with the “midstream”
part of the healthcare equation,
which includes navigating the system
and facilitating access to public and
private care. “The healthcare system
isn’t operating at an optimum level,”
she says. “People are looking to their
employers as a primary resource.”
For example,ADP’s plan members
(and their families) can access a pro-
gram called MyHealthTrack.This pack-
age of health benefits, in partnership
with Cleveland Clinic Canada, includes
online second opinions, health infor-
mation resources and other healthcare
support. Mensch says this range of
services would typically be available
only at larger companies.
Track how benefits are
meeting business goals
To both employers and employ-
ees, benefits deliver value. Often,
10 Grow Your Business with Group Benefits
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