Unlock the Door to Employee Retention With a Great Benefit Plan!

Michael Nadler 905-785-0084

michael@benefitsource.ca

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

COMMUNICATE

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

905-785-0084

michael@benefitsource.ca