A Framework for Analyzing and Designing Systematic Yet Flexible Systems
DESIGNING & ADMINISTERING FLEXIBLE BENEFITS PROGRAM
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DESIGNING & ADMINISTERING FLEXIBLE BENEFITS PROGRAM April 21, 2020 Mr. Patricio Picazo, FLMI www.pmap.org.ph
Transcript of DESIGNING & ADMINISTERING FLEXIBLE BENEFITS PROGRAM
DESIGNING &
ADMINISTERING
FLEXIBLE BENEFITS
PROGRAM
April 21, 2020
Mr. Patricio Picazo, FLMI
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STRATEGIC HUMAN RESOURCE MANAGEMENT
HR PLANNING
&
STAFFING
TRAINING
&
DEVELOPMENT
LEADERSHIP
DEVELOPMENT
CAREER
DEVELOPMENT
&
SUCCESSION
PLANNING
PERFORMANCE
MANAGEMENT
REWARDS
MANAGEMENT
PERSONNEL
RELATIONS
PERSONNEL
WELL-BEING
VISION
MISSION
STRATEGY
VALUES
PERFORMANCE
MANAGERSHRD
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Before
• Police or enforcer of rules and policies
• Records keeper
• Recruiter
• Trainer
• Administrator
Source: John ClementsConsultants
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Now
• Talent Manager
❖ Talent Economics
❖ Talent Dynamics
• Marketing Manager
• Strategic Partner of theBusiness
Source: John ClementsConsultants
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Is about…
Ensuring HR is aligned to support
achievement of business goals
through an in-depth
understanding of the business
and its people – coaching the
business to consider people
implications of options/decisions.
Is about…
Sustaining one’s professional
credibility, personal integrity and
moral ascendancy in the delivery
of excellent and cost-effective HR
services and results, serving as
living examples of the Core
Values of the Company.
Is about…
Being genuinely concerned of and
deeply sensitive to the voice of the
organization and its people,
ensuring competencies and
engagement are maintained at
productive levels at all times.
Is about…
Constantly challenging the status
quo, enabling change through
people, facilitating the design of
change interventions that take into
account business and people
needs and coaching managers to
lead and drive a culture of change.
Partnering
with the
business
People
Effective-
ness
Personal
Mastery
Engaging
people in
change
Building and Sharing
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A. Perspective: Total Reward
B. Traditional Benefits Program and Current Context
C. Flexible Benefits Program
1. Definition
2. Why Flexible Benefits
3. Types of Flexible Benefits Program
4. Process of Development
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• Total Rewards Context
• Principles and Concept
• Walkthrough in Design
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TOTAL REWARDS
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GLOBALIZATION
TECHNOLOGY
CONVERGENCE
PLURALISTIC POST
MODERN CULTURE
ENTERPRISES EMPLOYEES
•Earnhigherrewardstostayon topofeconomic realities
•Capacity ofemployerto provide continuing employment•Healthcare•Futureretirement
•Engagement•Retention
•Continuingcompetencydevelopment•Managingcosts
FINANCIALCRISIS ww
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ALLEMPLOYEES HIGH POTENTIALEMPLOYEES
1 Challenging work 1 Base salary 1 Challenging work 1Career advancement
opportunities
2 Base salary 2 Job security 2Ability to impact
performance2 Base salary
3
Career
advancement
opportunities
3
Career
advancement
opportunities
3
Career
advancement
opportunities
3 Job security
4Health/Wellness
benefits4
Organization
reputation4 Base salary 4 Challenging work
5 Organization values 5Convenient work
location5 Organization values 5
Organization
reputation
6Organization
reputation6
Learning
opportunities6
Organization
performance6
Learning
opportunities
7Organization
performance7
Health/Wellness
benefits7 Job autonomy 7
Convenient work
location
SOURCE: TW TR STRATEGY for 21st
CenturyEmployees’View
Employers’View
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• In what ways does the employee value proposition — and the specific reward programs that make it real in employees’ eyes — need to shift to reflect the enormous changes taking place in the external environment?
• What should rewards look like when uncertainty and instability are the“new normal”?
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• The EVP is an implicit contract, or deal, between
employer and employee, articulating the nature of
the experience the employer offers in exchange for the employee’s dedication, productivity and
sustainable engagement
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Total Rewards
Company Practices
Work
Opportunities
Quality ofLife
Engagement
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Top Total Reward Priorities
Cost of providing benefits
The ability of reward programs to attract, motivate and retain talented employees
Clear alignment of TRwith business strategy and brand
The willingness of employees to pay for an increasing cost of benefit plan coverage and to manage their own reward budget
The ability of reward programs to accommodate the varying needs and interests of different generations w
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Broadens definition beyond traditional compensation and benefits
Offers Managers more reward options to consider that will contribute towards business strategies & organizational goals
Enables organization to “cover more grounds” in achieving desired objectives
Focuses and drives behavior over longer period of time
Recognizes the employee as a “whole” person
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They hold that people work for more than just pay,
they are also looking for an organization which
• has a powerful vision of where it is going and how it
plans to get there• wants to foster individual growth in acquiring skil s
that prepare them to add value to the business.
Total Reward Components
Individual Growth CompellingFuture
TotalPay PositiveWorkplace
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• Total reward strategy is a holistic approach aligning with
business strategy and people strategy; it encompasses
everything employees value in their employment relationship
like compensation, benefits, development and the work
environment (Kaplan, 2007).
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EngagingWork
Experience
Business
Performance&
Capability
TR Value Proposition
Cash
Compensation
Learning &
DevelopmentWork
Environment
Performance&
RecognitionPEOPLE
STRATEGY
ORGANIZATIONALCULTURE
BenefitsBUSINESS
STRATEGY
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• Connects with the business strategy to create a high
performance culture.
• Creates affordable and sustainable costs
• Generates maximum return on the reward program
investment.
• Supports the “employment brand. ”
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CashCompensatio
n
Benefits
WorkEnvironment
Learning&Developmen
t
Performance&Recognition
ALIGNMENT
FLEXIBILITY
MIX LINKED
DE
SI
GN
DE
LI
VE
RY
CommunicationGovernance&Administration Measurement
TOTAL
REWARDS
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ALIGNMENT
• WithBusiness
Strategy
• WithPeople
Strategy
• Sustainability
MIX
• Cash
Component• Fixed
• Variable• Benefits
• Recognition
LINKED
(INTEGRATION)
• Performance
Management• Competencies
• Career
Management• Talent
Development
• Culture
FLEXIBILITY
• Employee
Segmentation
• Work Structure
& Practices
• Individual
flexibility
DESIGN
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FRAMEWORK
CASHCOMPENSATION
Pay provided by an employer to an employee
for services rendered (i.e. time, effort and
skill). Includes base salary, both fixed and
variable pay tied to levels of performance.
BENEFITS
Programs an employer uses to supplementthecash compensation that employees receive.
These health, income protection, savings and
retirement programs provide security for
employees and theirfamilies.
WORK ENVIRONMENT
A specific set of organizational practices,
policies and programs, plus a philosophy, that
actively supports efforts to help employees
achieve success at both work and home. ww
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PERFORMANCE& RECOGNITION
Performance: The alignment of organizational, team and
individualeffortstowardtheachievement of businessgoals and
organizationalsuccess.It includesestablishing expectations,skill
demonstration, assessment, feedback and continuous
improvement.
Recognition: Acknowledges or gives special attention to
employeeactions,efforts,behavioror performance. It meets an
intrinsicpsychologicalneed forappreciationofone’sefforts and
can support business strategy by reinforcingcertain behaviors
(e.g., extraordinary accomplishments) that contribute to
organizational success.Whether formal or informal,recognition
programs acknowledge employee contributions immediately
after the fact, usually without predetermined goals or
performancelevels thattheemployeeis expected toachieve.
Awards canbe cash or noncash(e.g.,verbal recognition,
trophies, certificates,plaques,dinners, tickets,etc.)
FRAMEWORK
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LEARNING &DEVELOPMENT
Development: A set of learning experiences
designedtoenhanceemployees’appliedskillsand
competencies.Developmentengagesemployees to
perform better and engages leaders to advance
theirorganizations’peoplestrategies.
Career Opportunities: Involve the plan for
employees to advance their career goals. May
include advancement into a more responsible
positioninanorganization.Thecompanysupports
career opportunities internally so that talented
employees are deployed in positions that enable
them to deliver their greatest value to the
organization.
FRAMEWORK
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• Cash Compensation
▪ Base salary
▪ Guaranteed allowances & bonuses
▪ Variable compensation
• Benefits
• Work Environment
▪ Recognition Programs
▪ Work Life Programs
• Learning & Development
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Base Salary& Cash
Allowances
PerformancePay
Benefits
Recognition
WorkLifeBalance
Learning & Development
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Guaranteed Cash
• Base salary
• Allowances
Variable Pay
Incentives
• Gainsharing
Benefits
• Retirement
• Medical
Perquisites
• Representation
• Executive Leave
• Car
Intrinsic value of job or individual
• Setsbasic lifestyle
Performance
• Link pay toperformance
• Provides differentiation based on levels of performance
Membership
• Provides protection and security
Status and Recognition
• Enhance image and recognition
• Business representation purposes ww
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Recognition Program
Generally non-financial form of reward that highlights certain desired behavior that supports the Company’s culture:
Examples
• Model Employee Award
• Service Award
• Top Sales Manager
Work LifeProgram
Addresses the “Work Life Experience”
• Acknowledgement, appreciation and recognition
• Balance of work/life
• Culture
• Development
• Environment ww
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OBJECTIVES Base
Salary
Incentive
Programs
Benefits Recognition
Programs
Work/Life
Programs
Attract right kind ofassociates
Retain critical talent
Drive Performance
Shape Desired Behavior
Recognize extraordinary effort
Help Employee Meet Needs
Improve Quality of WorkLife
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TOTALREWARD
Integration
Alignment
LegalCompliance
IndividualValuation
Cost Effectiveness
Competitiveness
Lineof Sight
ProgramMix
FirmLevel
IndividualLevel
CommunicatingDesired Behavior
Managing Changes
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1. Alignment with theFirm’sGoals
2. Integration with HRinterventions
3. Program Mix
▪ Fixed and Variable
▪ Compensation and Benefit and Recognition
Programsto the TotalPackage
4. Cost effectiveness oroptimizingvalue
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5. Compliance with statutoryrequirements
6. Competitiveness: Level of Compensation vs. Market
7. IndividualValuation
a. Position: InternalEquity
b. Performance
c. Person
8. Line ofSight
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9. Serve as a communication device to nurture and emphasize desired entrepreneurial activities and to signal legitimacy to external stakeholders
10. Managing changes in compensation levels
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• Coming up with competitive compensation packages to
attract and retainthe rightquality of people
• Balance betweenhaving formal programs and costimplications
• Suitabilityto the firm’scultureand itsstage of development
• Highercost of ‘purchasing benefitsprograms’ due tosmaller
employee numbers
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• Infrastructure required for implementing a good total
reward program
▪ Access to technology
▪ Availability of other formalmanagement systems
(e.g. planning, performance measurement)
▪ Cost of availing expertadvise
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• Identifykey behavior that willberewarded
1. Creativity and innovation
2. Willingness to take risk
3. Dealing with ambiguity
• More ofvariable compensation tosupport entrepreneurial
growth of theorganization
▪ Short termincentives
▪ Long term incentives: stockacquisition plans
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• Variable Pay
▪ Allow the firm greater flexibility by sharing risk and de-
emphasizing base pay
• Firms can reinvest in the business when it is most vulnerable or give more incentives to its people when times are good
• Examples: profit sharing, organization-wide
incentives
• Performance-based benefits programs
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• Culture of Recognition
• Alternative delivery structures
▪ Flexible versus standard
▪ Maximize technology
▪ Explore outsourcing
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TR PHILOSOPHY &
COMPONENTS
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Does my company have a
benefit philosophy? What is it?
What are the benefits given
to employees in mycompany?
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REWARD PHILOSOPHY?
Organizational Objective
• Which objectiveis being supportedby thereward program:
attraction/retentionof keytalents? Driveperformance?
•What will determine job value/ Individualvalue
•Performance
•Competence
•Scope ofwork
•MarketPay
Factors that determineReward
• Howmuch will go into the fixedcomponent (basesalary,guaranteed
allowances? Into thevariablecomponent?RewardMix
• Which companies will we be comparedwith?
• How shall theorganization position itself vis a visthis comparator organizations?
• What are thedifferentgroups of employees?
• How will their rewardmixand programsbedifferentiated
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Differentiation
among Other
Companies
Differentiation among Employee
Groups
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• Our Compensation Programs will be:
▪ Competitive with appropriate peer group
▪ Flexible to address specific business needs
▪ Inclusive of salary, benefits and incentives
▪ Performance-linked to keybusiness results
▪ Equitable in their treatment of associates
▪ Team-oriented to supportcooperation
▪ Developmental to support a learning
environment
▪ Communicated clearly to all associates
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BENEFITS
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• Meet the different welfare needs of employees
and their families
• Provide financial assistance to the employees
• Help contribute to organizational objectives in attracting
and retaining talents
• Manage benefits costs to ensure
sustainability
• Establish most efficient and effective delivery system in
administering benefits
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• Standard benefits for all employee groups
• Generally tied to membership and tenure within the organization
• Typical benefits
1. Healthcare for employees and dependents
2. Paid leaves
3. Life insurance
4. Retirement
5. Uniform
6. Allowances
7. Rice
8. Loans
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• Employees are equally responsible for planning for
• their welfare needs and that of their family
• The Company shall seek to establish a minimum level of
benefits to ensure that its employees are provided with
basic welfare services and programs that wil in turn ensure
a healthy and productive workforce.
• The Company shall establish cost effective delivery systems to support the implementation of its benefits programs
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• The vacation leave is intended to enable the employees to have a time to rest and recharge for them to continue to be productive
• The sick leave is intended to provide for continuity of income during periods when they are disabled to perform their work due to illness or accidents
• The life insurance is designed to provide financial assistance to the family of the employee in case of their untimely demise
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• The medical benefit is intended to enable the
employee to avail of services that wil enable them to
maintain a healthy state of wellbeing and/or recover
from their illness and become productive again at the
earliest time
▪ The employees will have primary responsibility for
their dependents’ medical requirements. The
Company shall provide assistance to enable them
to provide for this need.
• The educational allowance is a financial
assistance to aid in the education of the
employee’s dependent children
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• The rice benefit will ensure that the employees and
their families will have a source of this basic
staplefood
• The Service Award recognizes employees who have
remained loyal to the company
• The retirement benefit will enable the employee to
transition to new life after serving with the Company
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• Changes in retirement age
• Stressors on social insurance
▪ Old-age retirement
▪ Medical expenses
▪ Long-term care
• Convergence between less and more
developed nations
▪ Greater need to enhance social or occupational
insurance in developing nations
▪ Cost of employment will increase in developing
nations
Source :Lockton ww
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• Decreasing fertility rates combined with aging will impact age dependency ratios globally
• Fewer working people to supportnon- working
populations
• Added strain onsocial insurance
• Greater reliance on occupational and individual
retirement savings
• Greater participation of women in the workforce
Source :Lockton
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Source :Lockton
• Women participating more significantly in the workforce
▪ Greater flexibility and protections to promote working
women having children
▪ Increased child care grants inEurope
▪ Greater equality among genders
• Older workers on flexible working arrangements
• Mobility and migration wil continue to grow
▪ Easing of immigration restrictions to be expected as economies improve and labor market tightens
• Redefinition of the employee value proposition
▪ Greater employee power in defining how workis
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Source :Lockton
❑ Growing importance of benefits from “nice to have” to a
“must have”
❑ Adding flexibility to benefitsoffering
• Align expense with value perception
❑ Assignment opportunities
❑ Wellness and prevention
❑ Annual check up, biometric screening, health risk
assessment, employee assistance
• Better communication of benefits on offer
• Growth in lifestyle benefits as differentiator
• Gym membership, shopping discounts, etc.
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FLEXIBLE BENEFITS
PROGRAM
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• Flexible Benefits
▪ Gained more acceptance as organizations deal with
more diverse Workforce
▪ Developments in information technology has removed
barriers in administrative support
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Flexible Benefit Plans are formal arrangements wherein
• Employees are provided with a range of employer
funded benefits and/or a separate benefit spending
allowance
• Employees choose benefits from a menu of options using
their allowance, downgraded benefits, and salary
contributions
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• Choice could be from
▪ Among different levels of the same benefit
(different levels of health plan), or
▪ Among different types of benefits (e.g. insurance,
dental coverage, vacation)
• With flexible benefit schemes, employees have the choice to retain their existing salary and simply vary the levels of benefits within their allowance, or adjust their salary up or down by taking fewer or more benefits respectively, depending on the offer.
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• AN ALTERNATIVE WAY OF PACKAGING BENEFITS
▪ From standard and common content for all to a
differentiated and customized content
▪ From defined benefit and cost to varied funding
and benefits
▪ From company prescribed to employee
participation and determination
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• Changing employeedemographics =Changing
demands
• Positive impact onemployees
▪ become aware of thevalue of benefitsand not
takethem forgranted
▪ able to tailorbenefitsaccording to their personal
situation
“Employee satisfactionleads tocustomersatisfaction”
• Long-term costcontainment
• Promotescultureof shared responsibilityand
empowerment
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Mid 30s to 50s
Above 50s
20s toEarly30s
• Cash• Annual
leave
• Car• Career/
training
• Life/medical• House• Career
progression
• Work-life balance
• School
funding
• Medical• Work-lifebalance• Universityfunding• Retirement
planning
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• A flexible benefit scheme can form an integral part of
the reward strategyand should work in conjunction with
the organizational goals andstrategies.
• Ithas been found that introducing aflexible benefit scheme will
increase the perceived value of the reward package
offered to employees, at no additional cost to the
organization.
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• FROM EMPLOYERS PERSPECTIVE
▪ Employers provide benefits at a known cost that is fixed, irrespective of the choices that employees make, allowing employers to cap future costs.
▪ Employers are seen to be more responsive to the needs of an increasingly diverse, demanding and ageing workforce.
▪ A competitive benefits package is valuable in
attracting and retaining key personnel.
▪ Helps to align the organizations reward strategy
to both HR and business strategies.
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• FROM EMPLOYEES’ PERSPECTIVE
▪ Employees choose benefits to meet their needs
which means they value these benefits highly.
▪ Employees have a true idea of the ful worth of the
benefits package they receive and employers do not
provide benefits that are not valued.
▪ Employees are given a sense of control and
involvement by having a choice.
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The needforsecurity.
• Employees choose benefits & make changes that match their individual circumstances.
• Allows employees to avoid duplication coverage between spouses
Theneed forwellbeing&security
• Flexplans can act as workplace recognition & rewards programs• Flexplans can adapt to changing needs and reduce stressfor employee
Theneed thatdiversityintheworkforcebrings
• Flexbenefits allows for individual preferences to be met.• Allows employee to choose what they value the most.
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1. Modular
▪ Choice of pre-designed benefit packages
▪ Each package contains a fixed combination of benefit
plans
PACKAGEA PACKAGE B
Vacation Leave of
10 Days
Vacation Leave of
20 days
Healthcare withMax
Coverage of300k
Healthcare withMax
coverage of150k
Life Insurance –3xAnnual
Salary
Life insurance of2x
annual salary
Dental care Gym membership ww
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2. Core-Plus
▪ Combination of traditional benefits and flexible
benefits
▪ Core benefits are maintained and provided to all
employees
▪ Employees are given choice to add benefits above the
core level from a selection. Employees can “purchase”
these benefits through the credits given them every year
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BaseSalary
Total Reward
Flexible Benefits Program
•Medical
•Life
Insurance
•Vacation
•FSA
Incentive
/ Bonus
Program
Core
Benefits
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Employee
Credits
Salary
Deduction
Flexible
Benefits
•Vacation
•Option I
•Option II
•Medical
•Option I
•Option II
•LifeInsurance
•Option I
•Option II
• FlexibleSpendingAcct
CashHealth
Reimbursement
Acct
Funding
Options
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3. Ful Flex
▪ All benefits are part of the selection that employees
can choose from; there is no core program
▪ Employees can design their own benefits package
from the available selection
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FLEXBEN
PlanDesign
BenefitsValuation
Funding
EnrollmentITSystem
Communication
BenefitsProviders
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Business Objectives
Market Positioning
Employee Requirements
Financial Efficiency
Benefit Strategy
•Administration
•Cost
•Providers
CurrentBenefits
•Surveys
•FGDsEmployeeResearch
•Trends
•New
IdeasInnovation
•External
researchMarket Benchmarking w
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1. Projected uptake onbenefits
▪ Estimate of participants selection of a benefitwhich becomes basis for pricing
2. Adverse selection
▪ ALL benefits within flexible benefit schemes are priced on the basis of a predicted number of selections. Where employees make significantly different choices, these are regarded as ‘adverse selections’. For the success of the scheme, the relative values of the benefits should be set to avoid too many adverse selections.
3. They should also be arranged so that the employees are not
encouraged to make selections that will jeopardize their
own financial and physical security. The inclusion of core
benefits guarantees a minimum level of protection. ww
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4. BALANCE between flexibility thatencourages inappropriate choices, and too narrow a choice that does not meet the employee’s expectations.
4. Before implementing a flexible benefit scheme you may
find it worthwhile to survey your employees to determine
the type of benefits they favor and value. This wil also help
to maximize the value of the package for both you and
youremployees.
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• Drivers/
Objectives
• Assessment ofcurrentbenefits
FEASIBILITY
DESIGN &DEVELOPMENT
• PlanType
• Features
• Communication
• Enrollment
Continuing
Admin
IMPLEMENTATION
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1. Definedriversand objectives forthe FlexBen
Program
2. Review currentbenefitsprogramsand
administrative infrastructure
3. Research on employeeprofileand needs
4. Assessmentof benefitsbased on objectives and
employee needs
5. Develop conceptualplan design
6. Determine plancomponents
7. Prepare cost analysisof development and
implementationstructure
8. Benefit-costanalysis
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• PLAN DESIGN
• PRODUCT(Benefits)
• PRICING
• PROMOTION(Communication)
• DELIVERY
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PLAN DESIGN (Model)
1. Considerations
a. Maturity of employees to choose
b. Administrative capability
c. Cost implications
2. Core Plus
a. Ensures minimum coverage
b. But provides for enough flexibility
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PRODUCT (Benefits) and PRICING
1. Benefits to be included in the plan
a) What can be increased / reduced
b) What can be added/ removed
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Flex Ben
Retirement
Leaves
Medical
Coverage
Dental Coverage
Childcare/ Eldercare
Gym/ Wellness Programs
Travel
Car
Allowance
Life Insurance The identification of
benefits to be
included must not
just be a shopping
list for the employees
to buy but considers
both business and
employee
objectives.
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PRODUCT (Benefits) and PRICING
2. Benefits valuation (pricing): determines how much they
have to pay to ‘acquire additional benefits)
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Benefits PRICING
1) Salary related
2) Group rates
3) Market rates (providers)
4) Cost to the employee and to the provider
5) Caution: potential impact of adverse selection
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Benefits Funding
How wil the PURCHASE of the desired benefits be funded?
1. Employers’ credits
2. Salary Contribution
3. Voluntary Benefits Changes
4. Flexible Spending Account
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DELIVERY
1. Annual enrollment
2. Administrative system to track selections and advise
providers/ administrators
3. Communication materials
4. Administrative Setup
a. In-house: HR, IT,Finance, Legal,
Procurement
b. Outsourced
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BENEFITS
• Increased employee
satisfaction
• Cost management
• Communication of
• total compensation
• Leading edge
• reputation
• Contributes to employee attraction, retention and engagement
COST
• Additional
administration
• Implementation and
ongoing cost
• Co mmunic ation
challenge
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WHY COST MANAGEMENT?
1. Reduce employee pressure for new benefits/
perquisites
2. Encourage those with coverage elsewhere to re-allocate
their benefits to another
3. Awareness of cost of each benefit &
compensation program
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• Drivers/
Objectives
• Assessmentof
currentbenefits
FEASIBILITY
DESIGN &DEVELOPMENT
• PlanType
• Features
• Communication
• EnrollmentContinuingAdmin
IMPLEMENTATION
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III. ENROLLMENT
A. Form
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III.ENROLLMENT
FEATURE CODE AMOUNT
I. BENEFITSCREDIT 30,000
II. BENEFIT OPTIONS
A. Insurance Core 500
B. HealthCare(for Employees)
Core 3,000
C. Health Care(forDependent
D 0
D. VacationLeave E 7,500
E.Rice D 0
Subtotal 11,000
III. Difference(I-II) 19,000 ww
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ENROLLMENT
ON-GOING ADMINISTRATION
BENEFITSDELIVERY
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GENERAL GUIDELINES
1. Once a year enrollment
2. Outside of regular annual enrollment
a. New hires
b. Lifestyle changes
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A. Planning for Enrollment
B. Provision of Enrollment Materials
C. Collection/ Consolidation of Accomplished Enrollment
Forms/ Materials
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COMPLEXITY OF ENROLLMENT
1. Plan Design
2. Communication
3. Organization Structure
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Planning
1. Data gathering
a. Employee Data
b. Benefits –related data
2. Calculation
a. Determine credits, options and price tags
3. Communication Plan
a. Identification and development of
communication materials: print, video, online
b. Production of all communication materials
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DISTRIBUTIONOF ENROLLMENT MATERIALS
1. E-mail/ Regular mail
2. Online
COLLECTION OF ACCOMPLISHED ENROLLMENT MATERIALS
1. Review to ensure completenessand
correction
2. Print and send confirmation statements
3. Update other systems
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UPDATE OTHER SYSTEMS
1. Insurer
2. Healthcare Provider
3. Benefits Administration
a. Leaves
b. Rice
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“The most important elements
in ensuring the success of A
flexible benefit scheme are
effective communication and
education."
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• Introduce the concept of flexible benefits, and the features of
theplan
• Guide the employees through the coverage, the options
available, the decisions and cost implications of their
decisions;
• Assist managers in helping the employeesinthe enrollment
process;
• Provide sufficient ongoing administration to ensurecontinued
acceptance of the program and effective useof the
benefits
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• “a written statement of what communication actions you will
engage in to support the accomplishment of specific
organizational goals, the time frame for carrying out the plan,
thebudget, and how you willmeasure the results.”
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AUDIENCE KEY
MESSAGE
CHANNEL/MEDIA
RESPONSIBILITY TIMETABLE
Management
PartnerProviders
Administrators
Union
Employees
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A. Pre-Enrollment
1. Management Briefing
2. Employee announcement letter/ memo
3. Poster
4. Newsletter
5. Training meetings
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Enrollment
1. Enrollment meetings
2. Video presentation
3. Personal Information Kit
4. Enrollment Form
5. Dependent and beneficiary enrollment form
6. Q & A Sessions
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Flexible Benefit Administration System
1. Excel-based
2. Software
3. Linked to Payroll/ HRIS
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FUNCTION OF THESYSTEM
1. Carry election information
a. Option
b. Price
c. Dependent/ Beneficiary
2. Carry credits
3. Perform Calculations
4. Update other systems
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STATUS CHANGES
1. Follow plan rules
2. Re-calculate
3. Re-elect
4. Update other systems
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1. Track coverage
2. Pay benefits
3. Monitor cost
4. Periodically assess employee satisfaction
5. Monitor performance of providers
6. Organization Structure
a. In house
b. Outsourced
c. Combination
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Business Strategy
PeopleStrategy
Total RewardStrategy
BenefitsStrategy
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I. FEASIBILITY
1. Assessment of Current Benefits Programs
2. Assessment of currentadministrative
infrastructure
3. Plan Design
a. Model
b. Benefits for Inclusion
c. Options for each Benefit
d. Pricing of each Option
e. Valuation of benefits that wil be waived
f. Benefits Credits/ Flex Point
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I. FEASIBILITY
4. Administrative Infrastructure
a. Providers
b. Administration System
c. Organization Structure
5. Benefit Cost Analysis
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II. DESIGN&DEVELOPMENT
1. Putting details into the plan design
2. Negotiations with the Providers
III. IMPLEMENTATION
1. Enrol ment
a. Communication and Training
b. Preparation and Send out of Enrollment Formsc. Collection/ Consolidation of Accomplished
EnrollmentForms
d. Update of Systems
1. Ongoing Administration
2. Benefits Delivery ww
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Landline : 8740-6584
Mobile Phone : 0917-5772949 (Globe)
: 0918-9903555 (Smart)
Email Address : [email protected]
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