Over a month ago, I had the opportunity to speak at the 2016 Toronto Entrepreneurs Conference & Trade Show in Mississauga at the Mississauga Convention Centre. The title of the presentation was “Five Ways to Fund and Design a Benefits Program”. I presented a power point presentation to about 200 hundred business professionals.
It was an exciting opportunity and I wanted my presentation to be stimulating and engaging so I could keep the audience interested for thirty minutes. Most business owners that offer employee benefits understand that the benefits are part of their total compensation. These benefits are a cost to the business owner and a tax free benefit to the employees.
Today, we are going to deliver a fresh perspective and hopefully inspire you to consider there is a better way to deliver your benefits program. We always start a new client relationship with a discovery session that allows us to learn about your organization, your employees and their needs. This understanding of your organization allows us to have the room to apply our benefit expertise to your unique organizational environment. Then we work with the HR team and even employees to grow the ideas. This is when things start coming into perspective.
“Going forward, smart employers will customize their benefits to stay relevant to employees of all ages”
A little over a decade ago, group benefits were standard fare: traditional health, dental and vision, geared toward the undemanding average employee. But changing demographics have triggered a culture shift, prompting canny employers to fine-tune their total rewards packages to stay ahead of the hiring curve.
What Style and Funding method would works best for Health and Dental Coverage that best suits your company?
There Are Five Ways To Fund And Design A Benefits Program
- Traditional, Fully-Insured Plans – Security at a higher cost.
- Trust Plan– Fully Insured with excess profits refunded.
- Administration Services Only (ASO) – Lower cost with less stability.
- Flex Plans With Healthcare Spending Accounts (HSA) – Pick your premium.
- Hybrid Plans – Customized solutions to suit your best interest.
Let’s be clear: managing a benefit plan in today’s changing demographic environment is very difficult. Baby boomer and the Gen Y employees have different demands from the benefits plan. I recently implemented a plan that combined traditional plan with a flex plan. This meant that the newer younger employees had an insurance plan for life insurance and Long term disability but their health and dental coverage was provided by a health spending account. The application was mobile and they could submit their claims from their mobile device. After two years the average cost for the 120 employees had dropped by $15 dollars per employee per month saving the company an average of $1,800 per month.