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.

Grow YourBusiness withGroup Benefits

Grow Your Business with Group Benefits 1

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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.

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“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 plansgenerate 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

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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 oyou

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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.

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 preventionBeyond 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 Gen Y, 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 Rick Tessier, chief underwriter, with ADP Insurance Solutions in Toronto.

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. As Tessier 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,” says Tessier. “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 benefitsdeliver healthyresults

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

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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 GoAlsTo both employers and employ-ees, benefits deliver value. Often,

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