The benefits of being flexible April 2012
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Transcript of The benefits of being flexible April 2012
The benefits of being flexible
by Toronto Training and HR
April 2012
Page 2
Contents
3-4 Introduction to Toronto Training and HR5-7 Definitions8-9 Foundations of a benefits plan10-15 Communication16-18 Advantages of flexible benefits19-20 Disadvantages of flexible benefits21-22 Outsourcing flexible benefits23-25 Key areas that need to be assessed26-27 The tax situation around flexible
benefits28-30 Project plan for flexible benefits31-32 Implementing a flex plan33-34 How flexible benefits can facilitate
change35-37 Determining what employees value38-40 Questions which impact on strategy and design41-43 Flex in the future44-45 Drill46-55 Case studies 56-57 Conclusion and questions
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Introduction
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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
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Definitions
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Definitions 1 of 2
Flexible benefitsCafeteria benefitsFlex plan
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Definitions 2 of 2
TYPICAL BENEFITSLearning and developmentLifestyle optionsFinancial and legalHealth and wellbeing
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Foundations of a benefits plan
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Foundations of a benefits plan
Health insurance for expenses not covered by your provincial planDental benefitsGroup life insuranceShort- and long-term disability plansRetirement savings plansVacation and other paid time off
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Communication
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Communication 1 of 5
Brief (each time)Jargon-freeBrandedTailored to its audience: employees are interested in matters affecting them personally, so the more a company can target the information individually, the more buy-in it will achieve
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Communication 2 of 5
DirectChampioned: if someone known and respected believes in the scheme and can put forward their case study, others will buy in too
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Communication 3 of 5QUESTIONS TO ASK:What is the best way to design a unique brand and style?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?
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Communication 4 of 5DEVELOPING A COMMUNICATION STRATEGY:Review current benefit awarenessEstablish preferences for benefit communicationExamine employee attitudes to flexibility in benefits and the value/concerns they may have regarding this issue
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Communication 5 of 5
DEVELOPING A COMMUNICATION STRATEGY:Get it!Support it!Do it!
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Advantages of flexible benefits
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Advantages of flexible benefits 1 of 2
Employees choose benefits they want and value, rather than having to accept unwanted and under-valued benefitsWhere a budget system is adopted, the cost of benefits is controlled betterEmployers and employees share responsibility for benefitsEmployees can change their benefits as their lifestyle changes
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Advantages of flexible benefits 2 of 2
Employees participate in the design of their reward packageDual-career couples avoid the duplication of benefitsEmployers are seen as responding to employee demands for flexibility
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Disadvantages of flexible benefits
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Disadvantages of flexible benefits
Danger of increasing costsProblem of valuing benefitsDiscounts may be lost if some employees withdrawComplex administrationNeed for financial counsellingTax implications
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Outsourcing flexible benefits
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Outsourcing flexible benefitsEnsure there are clearly defined reasons for outsourcingEnsure contracts are drawn up wellEnsure a good but practical set of service level agreementsEnsure the outsourcer provides a good set of guarantees and performance bondsMake absolutely sure that the contract caters for all eventualities
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Key areas that need to be assessed
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Key areas that need to be assessed 1 of 2
Supporting and enhancing the organization’s mission statement and key prioritiesEmployee benefits reviewMarket issuesEmployees’ and employers’ prospectiveEmployment law issuesCommunications issuesProduct selection and mix
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Key areas that need to be assessed 2 of 2
Administration, IT and outsourcingProject managementFinancial benefits, costs and risk analysisMonitoring and evaluation
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The tax situation around flexible benefits
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The tax situation around flexible benefits
Clearly understand the current tax and social insurance positionFor each product selected, define precisely its tax treatmentAssess mixing benefits together and the use of salary and bonuses to fund choicesUse modelling to find the best mixDevelop a clear, simple effective communication strategy specifically for tax
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Project plan for flexible benefits
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Project plan for flexible benefits 1 of 2
Agreement of benefits program and items to includeBenefit products and providers agreedSystem configurationPayroll feedEmployee data providedSecurity checksScheme booklets designed and printed
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Project plan for flexible benefits 2 of 2
Communication documentation issued to employees explaining the schemeTesting of siteSite signed off by clientSite signed off by administration teamGo live-enrolment period
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Implementing a flex plan
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Implementing a flex plan
Don’t provide too many optionsRepackage benefits to provide employees with the coverage they need, but don’t break it down so much that you’ll get “cherry-picking” Simplify the price/credit structureHave well-planned communication
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How flexible benefits can facilitate change
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How flexible benefits can facilitate change
Restructuring company care schemesIntegrating incompatible terms and conditions after mergers and acquisitionsIntroducing new payment systemsReinforcing cultural changes
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Determining what employees value
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Determining what employees value 1 of 2
Is it tax-effective for the employee? Is the benefit not generally available outside of work? Does it enhance the company’s image and branding?
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Determining what employees value 2 of 2
Does it offer a discount pricing advantage? Does it add cost to the existing benefits plan? What is the impact on the total rewards package of pay, benefits, career development and work/life balance?
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Questions which impact on strategy and design
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Questions which impact on strategy and design 1 of 2
When are you looking to introduce the scheme?How will you be administering the scheme?What benefits do you currently provide (and at what levels), and who do you provide them for?What benefits must you provide in the future?What benefits do you want employees to have going forward and at what minimum levels?What benefits do your employees want?
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Questions which impact on strategy and design 2 of 2
Who do you want to be able to select each of the benefits?How much money will you give your employees to spend on their own benefits?How much of their own cash will employees be allowed to spend on their benefits?Who provides your existing benefits, and can or will they provide benefits on a flexible basis?
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Flex in the future
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Flex in the future 1 of 2Fixed amounts for contribution to the premium cost of additional group insurance, such as drug, dental, hospital and out-of-country medical coverage, paramedical and private duty nursing and optional life insurance Lifestyle accommodation benefits, such as flexible work arrangements, personal and professional growth opportunities, work/life balance options, wellness programs, flexible work hours and vacation purchases
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Flex in the future 2 of 2A plan to cover medical and dental expenses deemed eligible by the Canada Revenue Agency, such as cosmetic dental services Additional voluntary contributions funded by the employee, with the employer contributing a fixed percentage
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Drill
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Drill
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Case study A
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Case study A
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Case study B
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Case study B
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Case study C
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Case study C
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Case study D
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Case study D
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Case study E
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Case study E
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Conclusion and questions
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Conclusion and questions
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