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

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

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