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1. 1 Paul Colley, FCIPD
Market Insight Manager
Zurich International Life
International Employee Benefits Seminar
Marcliffe Hotel, Aberdeen
28 April 2010
2. 2
3. 3 What is Corporate Responsibility? Corporate Responsibility (CR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
At times can be a bit devalued by those who only look at part of the picture – target for cynicism.
Not about charity for charity’s sake. But contract between the various parties in business
But as definition shows – the perfect “win-win” example
Good business – because its about managing risks.
. At times can be a bit devalued by those who only look at part of the picture – target for cynicism.
Not about charity for charity’s sake. But contract between the various parties in business
But as definition shows – the perfect “win-win” example
Good business – because its about managing risks.
.
4. 4 CR risks Risk is dual edged, there is generally a possible upside and a possible downside, so risk needs to be managed.
In CR terms the impact is most likely to be one or all of:
Reputational
Financial
Health and welfare
When this partnership fails – bad things tend to happen
Breaking the contract has the risk of being the main item on the news – customers then choose to leave. Prospective employees decide that maybe you’re not the right employer for them.
…and it could be argued that this is the best hope.
Bad companies risk fines for failure, punitive taxes to balance the negative outcomes on society – e.g fat taxes, compliance costs.
Society, through government, may then stop behaviour – either on companies or individuals. Bank bonuses a wonderful example.
In the extreme cases people get injured or die.
When this partnership fails – bad things tend to happen
Breaking the contract has the risk of being the main item on the news – customers then choose to leave. Prospective employees decide that maybe you’re not the right employer for them.
…and it could be argued that this is the best hope.
Bad companies risk fines for failure, punitive taxes to balance the negative outcomes on society – e.g fat taxes, compliance costs.
Society, through government, may then stop behaviour – either on companies or individuals. Bank bonuses a wonderful example.
In the extreme cases people get injured or die.
5. 5 Enron case study – when CR goes wrong ENRON – one of the biggest financial scandals in US history
Paved the way for Sarbanes Oxley
New tax legislation in the US around deferred benefits – 409a
The demise of Arthur Anderson (Enron’s auditors)
Over USD1 billion wiped off employee retirement funds
4,000 people lost their jobs
Company left USD31.8 billion debts …. And it does go wrong.
Killed not one but two companies.
Contract between company and society broken (investors, governments)
All business engaging these sort of practices were targeted.
Contract between company and employer also broke down – all lost their jobs, most lot their 401k.s
Although this was solid corruption, recklessness is no better. I could put up slide after slide on banks. Most did nothing technically wrong – but inappropriate remuneration and benefit structures have caused problems – and the impact is that society imposes its will on the business and the employees (through restrictions on bonuses etc)…. And it does go wrong.
Killed not one but two companies.
Contract between company and society broken (investors, governments)
All business engaging these sort of practices were targeted.
Contract between company and employer also broke down – all lost their jobs, most lot their 401k.s
Although this was solid corruption, recklessness is no better. I could put up slide after slide on banks. Most did nothing technically wrong – but inappropriate remuneration and benefit structures have caused problems – and the impact is that society imposes its will on the business and the employees (through restrictions on bonuses etc)
6. 6 CR and HR Key reason for provision of benefits is to attract, retain and reward our company’s most valuable asset
Contributes significantly to job satisfaction
Improved engagement leads to higher productivity
Lower turnover rates
Allowing employees participation in the design and delivery of CR initiatives increases loyalty and is especially pertinent during tough market conditions
… and for the company it is important.
No need to explain to a room full of HR and benefit experts the importance of benefit strattegy in attraction and retention of staff.
Despite the economic turndown – there is still a shortage of key talent.
CR has a role.
People stay with companies whose values line up.
Dutch based organisation Covalence listing of ethics. Top companies can win (Google, IBM). Those down the list (Ryanair, Exxon) struggle.
Important element in bringing CR elements into Employee Benefits is staff involvement
Elements of CR are variable – by individual and by territory – so one size fits all doesn’t work.
In particular , flexibility tends to be a key – a point we’ll return to.… and for the company it is important.
No need to explain to a room full of HR and benefit experts the importance of benefit strattegy in attraction and retention of staff.
Despite the economic turndown – there is still a shortage of key talent.
CR has a role.
People stay with companies whose values line up.
Dutch based organisation Covalence listing of ethics. Top companies can win (Google, IBM). Those down the list (Ryanair, Exxon) struggle.
Important element in bringing CR elements into Employee Benefits is staff involvement
Elements of CR are variable – by individual and by territory – so one size fits all doesn’t work.
In particular , flexibility tends to be a key – a point we’ll return to.
7. 7 CR stakeholders … and that’s maybe one pf the challenges in Corporate Responsibility
Various stakeholders.
Sometimes it is perceived CR only between the company and the outside world.
But employees are that akk important part:
Could be argued greatest societal benefit is the provision of employment to the population.
Benefit strategy also enables society to function – the old and infirm have pensions, the sick have care.
And for balance of presentation I will focus on that bond between company and employee – the heart of any benefit strategy.. … and that’s maybe one pf the challenges in Corporate Responsibility
Various stakeholders.
Sometimes it is perceived CR only between the company and the outside world.
But employees are that akk important part:
Could be argued greatest societal benefit is the provision of employment to the population.
Benefit strategy also enables society to function – the old and infirm have pensions, the sick have care.
And for balance of presentation I will focus on that bond between company and employee – the heart of any benefit strategy..
8. 8 CR employee benefit Any employee benefit that has a positive impact on
the individual
the business and
society at large Perhaps best to start with a definition.
In the academic sense - not entirely sure this has ever been well defined.
This is courtesy of work Tom and some of my colleagues have been doing – and encapsulates world well.
Benefit strategy that has a positive impact on all three key stakeholders.
In effect these are “guilt free” – getting them isn’t a negative to others
In particular important to emphasise the company also gains – and Tom will share some of the benefits IHG have gained.
Perhaps best to start with a definition.
In the academic sense - not entirely sure this has ever been well defined.
This is courtesy of work Tom and some of my colleagues have been doing – and encapsulates world well.
Benefit strategy that has a positive impact on all three key stakeholders.
In effect these are “guilt free” – getting them isn’t a negative to others
In particular important to emphasise the company also gains – and Tom will share some of the benefits IHG have gained.
9. 9 Flexible work/lifestyle benefits Flexible holidays
Flexible working
Payroll giving
Charitable donations
Bus pass/train ticket provision
Cycle to work schemes
Employee assistance programmes
Childcare vouchers
Individual carbon offsetting I won’t go into detail as the IHG experience provides this in real life
But useful test – what’s happening in real world
Survey
However, these benefits show how a benefits strategy can link to corporate responsibility
However, flexibility allows employees values to be reflected – or not be if this is the case – particularly important in diverse workforces.
Part of a virtuous circle
Importantly costs tend to be comparatively low and engagement tends to be high
Engagement leads to value for the individual and the business.I won’t go into detail as the IHG experience provides this in real life
But useful test – what’s happening in real world
Survey
However, these benefits show how a benefits strategy can link to corporate responsibility
However, flexibility allows employees values to be reflected – or not be if this is the case – particularly important in diverse workforces.
Part of a virtuous circle
Importantly costs tend to be comparatively low and engagement tends to be high
Engagement leads to value for the individual and the business.
10. 10 Retirement benefits Unfortunately not all benefits can claim this level of cost effective engagement.
Spend a bit ion time on retirement benefits.
Common compliant is that employees juts don’t value the ever increasing costs.
But from a corporate responsibility viewpoint very important.
Individual gains.
Society gains. During decumulation phase it provides a safety net against poverty that otherwise would need to be borne by taxpayer. During accumulation phase the power of pension funds as the leading investors – can encourage good behaviours, can punish bad behaviours.
Engagement has possibly been low because of DB being a black box.
Limited options for trustees or other governance vehicles to act in an ethiucal way (National Coal Board case) – or cluster bombs in Netherlands. However these touch points so people can be galvanised.
DC gives a new opportunity.
Unfortunately not all benefits can claim this level of cost effective engagement.
Spend a bit ion time on retirement benefits.
Common compliant is that employees juts don’t value the ever increasing costs.
But from a corporate responsibility viewpoint very important.
Individual gains.
Society gains. During decumulation phase it provides a safety net against poverty that otherwise would need to be borne by taxpayer. During accumulation phase the power of pension funds as the leading investors – can encourage good behaviours, can punish bad behaviours.
Engagement has possibly been low because of DB being a black box.
Limited options for trustees or other governance vehicles to act in an ethiucal way (National Coal Board case) – or cluster bombs in Netherlands. However these touch points so people can be galvanised.
DC gives a new opportunity.
11. 11 CR retirement benefits in a DC world Defined Contribution enables choice and flexibility:
Ability to focus on the how of fund choice, not just the who and the what
Growing subset of SRI vehicles
Growing evidence that there is not a performance lag
Focus less on ‘sin’ and more on ‘current ethical concerns’
Challenges:
Communication and trust
Economies of scale
Administration
As well as passing elements of risk to the individual, DC does enable greater choice.
Can focus on the How – not just who (which can be influenced by marketing) or what (too basic).
“Experts in Responsible Investment Solutions” 2009 Survey shows less about “avoiding sin” and more about positive approaches (green, renewable energy).
Challenges
Unlikely current fund manager has all the skills – therefore a spread of investment managers key – time for asset aggregators and gateways
Economies of scale – but supported by growing trends to see single pools of global assets.
Communication need still there – but perhaps more attentive audience
-More funds mean more admin, more switching – a solid admin partner is key
But speculation DC is the next frontier for the SRI space.As well as passing elements of risk to the individual, DC does enable greater choice.
Can focus on the How – not just who (which can be influenced by marketing) or what (too basic).
“Experts in Responsible Investment Solutions” 2009 Survey shows less about “avoiding sin” and more about positive approaches (green, renewable energy).
Challenges
Unlikely current fund manager has all the skills – therefore a spread of investment managers key – time for asset aggregators and gateways
Economies of scale – but supported by growing trends to see single pools of global assets.
Communication need still there – but perhaps more attentive audience
-More funds mean more admin, more switching – a solid admin partner is key
But speculation DC is the next frontier for the SRI space.
12. 12 Summary Compensation and benefits strategy is a key element underpinning CR policy
All companies have to deliver employee benefits but when they are underpinned and aligned to a CR programme it can lead to :
Competitive differentiation –employer of choice
Increased motivation
Improved employee retention
Support to employees in difficult times
Improved employee engagement
Positive company PR
Increased employee engagement
Poor CR behaviour can have serious consequences
So in summary – corporate responsibility and benefits not a side issue.
Get it right …. It can go very right.
Challenges can be addressed.
So in summary – corporate responsibility and benefits not a side issue.
Get it right …. It can go very right.
Challenges can be addressed.
13. IHG Case Study Paul presented some good definitions of social responsibility.
I’d now like to share some things we’ve done at IHG that help to embed our corporate culture, address important needs of people, help us attract and retain talent and are sustainable in terms of cost.
Paul presented some good definitions of social responsibility.
I’d now like to share some things we’ve done at IHG that help to embed our corporate culture, address important needs of people, help us attract and retain talent and are sustainable in terms of cost.
14. 14 InterContinental Hotels Group (IHG) World’s Largest Hotel Company (by number of rooms)
Over 4,400 hotels, in ~100 countries, with over 640,000 rooms
Biggest in Asia, Biggest in China
IHG Brands: First a little about IHG…
My role is…First a little about IHG…
My role is…
15. 15 IHG core purpose and values Everything we do flows from our core purpose of GHGL
In everything we do, we strive to demonstrate what we call our Winning Ways…
Ask any of our more than 100,000 colleagues, from the CEO to the room attendant, and they will readily tell you what the Winning Ways are. More importantly, we hope you will see them reflected in our actions.Everything we do flows from our core purpose of GHGL
In everything we do, we strive to demonstrate what we call our Winning Ways…
Ask any of our more than 100,000 colleagues, from the CEO to the room attendant, and they will readily tell you what the Winning Ways are. More importantly, we hope you will see them reflected in our actions.
16. 16 IHG commitment (Employment value proposition) In return, we promise everyone—every colleague or potential colleague “Room to Be Yourself”.
This is our Employment Value Proposition, the IHG Commitment.
This includes specific promises or “Rooms”…
SO WHERE DOES CORPORATE RESPONSIBILITY FIT IN?In return, we promise everyone—every colleague or potential colleague “Room to Be Yourself”.
This is our Employment Value Proposition, the IHG Commitment.
This includes specific promises or “Rooms”…
SO WHERE DOES CORPORATE RESPONSIBILITY FIT IN?
17. 17 How IHG plan and prioritise We make our plans, our decisions and prioritize our work using “The Wheel”
Most businesses recognise 3 stakeholders: customers, employees and shareholders. Or as we call them “Guest Experience, Our People and Financial Returns”. We also recognise an equally important 4th stakeholder, and that is our communities. We test everything we do against the need to be a responsible business.We make our plans, our decisions and prioritize our work using “The Wheel”
Most businesses recognise 3 stakeholders: customers, employees and shareholders. Or as we call them “Guest Experience, Our People and Financial Returns”. We also recognise an equally important 4th stakeholder, and that is our communities. We test everything we do against the need to be a responsible business.
18. 18 CR at IHG awards CSR Innovation Award given in London by Hotel Magazine
Corporate Social Responsibility Award given in Los Angeles to IHG by National Business Travel Association
Hotel Visionary Award for Green Engage given by Hospitality Technology Magazine in Las Vegas
Eco-lodging Award given at the China Hotel Investment Summit
19. 19 InterContinental Thalasso Spa, Bora Bora Here in Bora Bora (hopefully the site of next year’s conference!),
We air condition our villas by bringing ultracold deep sea water up through a pipeline. This cuts down our electricity use by 90%, saving 2.5 million litres of oil p.a.Here in Bora Bora (hopefully the site of next year’s conference!),
We air condition our villas by bringing ultracold deep sea water up through a pipeline. This cuts down our electricity use by 90%, saving 2.5 million litres of oil p.a.
20. 20 The Willard, Washington, D.C. Willard InterContinental in Washington DC, USA, has been announced winner of Condé Nast Traveler’s third annual World Savers Awards, in the City Hotel category.
The hotel is 100% wind powered and known for a wide range of environmental and socially responsibility features. The Willard Hotel, located one block from the White House, is completely wind-powered.
BUT WHAT ABOUT THE OTHER 4,198 HOTELS?The Willard Hotel, located one block from the White House, is completely wind-powered.
BUT WHAT ABOUT THE OTHER 4,198 HOTELS?
21. 21 All of our hotels measure their impact on the environment by specifically measuring the consumption of water and fuel, and generation of waste, in relation to hotel occupancy. This way we can establish norms and identify which hotels are doing a better job than others or need improvement.All of our hotels measure their impact on the environment by specifically measuring the consumption of water and fuel, and generation of waste, in relation to hotel occupancy. This way we can establish norms and identify which hotels are doing a better job than others or need improvement.
22. 22 Socially responsible benefits at IHG - considerations Reflects culture and values
Addresses real needs felt by people on a local level
Sound business case — not charities but responsible businesses
Market benchmarks
May address broad basic needs or special needs of a few
Link to government social benefits structure – is there a public safety net? is assistance already available? are there tax incentives for providing a company benefit?
Does it tell a story that shows your company is socially responsible?
Quickly touQuickly tou
23. 23 Enhancements to Singapore health benefits Principle: when you’re in the hospital, your job title shouldn’t matter
Funding: Positive claims experience in prior years
Benefit provided by Government: Insufficient In Singapore, our hospitalization insurance provided a bigger room for those having bigger job titles, and a smaller room for lower level workers.
Although this is common in Singapore, it did not seem quite right in light of our Winning Ways. Our view was that your job title matters a lot at work but it should not not matter when you’re in the hospital.
We had positive claims experience the prior year, and we could have simply kept the plan as is, and reduced the premiums. Instead we chose to enhance the hospital room benefit to provide everyone the same as previously reserved for upper management.In Singapore, our hospitalization insurance provided a bigger room for those having bigger job titles, and a smaller room for lower level workers.
Although this is common in Singapore, it did not seem quite right in light of our Winning Ways. Our view was that your job title matters a lot at work but it should not not matter when you’re in the hospital.
We had positive claims experience the prior year, and we could have simply kept the plan as is, and reduced the premiums. Instead we chose to enhance the hospital room benefit to provide everyone the same as previously reserved for upper management.
24. 24 China Life and accident insurance Local gov’t benefit is limited, based on salary capped at 3 times city average salary; death benefit as low as 5% of pay for some
Market Study showed cash compensation was above market, but some benefits lag
Of these, life/accident seemed the most important to address as a basic “safety net”, then savings and add’l healthcare
Consistent with values of a filial society
A small portion of the annual merit budget was set aside for benefits enhancement; this was fully sufficient to cover cost of introducing supplemental life & accident insurance, with death benefit equal to
3x annual salary In China, our local employees lacked a sufficient life insurance cover, depending on a very small government mandatory benefit.
A recent benchmarking study showed that our cash compensation was above market whilst there were some opportunities to enhance benefits, including pension, healthcare and life insurance.
We felt strongly that a basic safety net of life insurance should be in place before we introduced any other types of enhancements.
Holding back some of our merit increase budget, we were able to fully fund the cost of introducing a competitive life insurance benefit of 3x annual salary, which is a common level of cover in China.In China, our local employees lacked a sufficient life insurance cover, depending on a very small government mandatory benefit.
A recent benchmarking study showed that our cash compensation was above market whilst there were some opportunities to enhance benefits, including pension, healthcare and life insurance.
We felt strongly that a basic safety net of life insurance should be in place before we introduced any other types of enhancements.
Holding back some of our merit increase budget, we were able to fully fund the cost of introducing a competitive life insurance benefit of 3x annual salary, which is a common level of cover in China.
25. 25 India public holidays IHG offered 16 fixed holidays
Other popular holidays not given
Hindus and Muslims were taking Christian holidays, Buddhists taking Hindu holidays
We have a diverse population, and we promise “Room to be Yourself”
We saw the opportunity to “Celebrate Difference” by allowing some choice of Public Holidays
We converted two of the less popular 16 holidays into “flexible holidays” In India, there are quite a number of religions and therefore a wide range of religious holidays.
We had been providing 16 fixed holidays, but saw an opportunity to “Celebrate Difference”
So we converted two of these days into “Flexible Holidays” to be taken on any of the recognized holidays in India
This change was highly popular.
Resulting from this change and other changes, our employee engagement nearly doubled from prior yearIn India, there are quite a number of religions and therefore a wide range of religious holidays.
We had been providing 16 fixed holidays, but saw an opportunity to “Celebrate Difference”
So we converted two of these days into “Flexible Holidays” to be taken on any of the recognized holidays in India
This change was highly popular.
Resulting from this change and other changes, our employee engagement nearly doubled from prior year
26. 26 Lifestyle-changing benefits Smoking and Obesity are major US health issues that impact cost and are related to lifestyle
Obesity is also largely hereditary, not just lifestyle
IHG wants to help those wanting a healthier lifestyle
Smoking cessation: nicotene replacement, helpline counseling, cash incentive
78% of employees said they were tobacco free to get incentive, others pay extra for their healthcare
Introduced Weight Watchers program reimbursement, following program completion
1,400 KG of weight lost by employees in first 6 months. One colleague lost 70 pounds (32 kg). Healthcare for smokers costs 25% more than for non-smokers
Healthcare for obese costs 50% more than for normal weight
Obesity is highly correlated with heart disease, diabetes and high blood pressure
(read the slide for the rest)
Healthcare for smokers costs 25% more than for non-smokers
Healthcare for obese costs 50% more than for normal weight
Obesity is highly correlated with heart disease, diabetes and high blood pressure
(read the slide for the rest)
27. 27 Summary Four successful initiatives:
Singapore Hospital Benefit (equality)
China Life & Accident Insurance (safety net)
India Public Holidays (diversity)
Healthy Lifestyle (special needs; health & wellness issue)
All reflect a corporate social value
Some help differentiate IHG; others are a minimum safety net but all engage well with employees
All require a business case, research/benchmarking and funding – sustainability is key to success
Send powerful messages to stakeholder groups
28. 28
Thank you
Any questions?
29. 29 Brian Colman
Corporate Sales Manager
Zurich International Life
International Employee Benefits Seminar
Marcliffe Hotel, Aberdeen
28 April 2010
30. 30 Zurich case studies
31. 31 Agenda Multi-national hotel chain
Multi-national shipping company
Multi-national oil services company
Common themes & Industry preferences
32. 32 Bringing the problems and solutions to life Case studies highlight many of the problems employers face
We will look at examples from 3 different industries
Highlight their specific problems
Look at the solutions
Identify common themes
33. 33 Hotel chain Multinational hotel chain
Multiple brands
Present in many countries
Complex business model
Experiencing rapid growth
34. 34 Hotel chain solutions Highly mobile workforce
Recruitment & retention of key staff difficult
All third country nationals
Poor staff perception of existing arrangements
Complex business model
Finite budget
Short implementation timescales
Multi currency requirements
Variable contribution rates, subject to seniority
Voluntary EE contributions
Group life and disability part of the solution
Lifecycle strategies
Additional Aus Dollar funds added
Additional Singapore Dollar scheme currency added
Contributions monthly in 7 currencies, via online system
Administered from 2 hubs in different hemisphers – 2 part-time basis
Annual staff newsletter
Online competitions to increase awareness
Co-sponsored additional voluntary contribution campaigns
Variable contribution rates, subject to seniority
Voluntary EE contributions
Group life and disability part of the solution
Lifecycle strategies
Additional Aus Dollar funds added
Additional Singapore Dollar scheme currency added
Contributions monthly in 7 currencies, via online system
Administered from 2 hubs in different hemisphers – 2 part-time basis
Annual staff newsletter
Online competitions to increase awareness
Co-sponsored additional voluntary contribution campaigns
35. 35 Hotel chain solutions Highly mobile workforce
Recruitment & retention of key staff difficult
All third country nationals
Poor staff perception of existing arrangements
Complex business model
Finite budget
Short implementation timescales
Multi currency requirements
Online ‘Location Codes’ developed
Immediate vesting, free for members
Tax neutral plan
Online self service + wider fund choice
7 plans, 2 hubs, 1 website
Cost effective
4 week implementation from receipt of paperwork
7 currencies including one added to platform at client request
Variable contribution rates, subject to seniority
Voluntary EE contributions
Group life and disability part of the solution
Lifecycle strategies
Additional Aus Dollar funds added
Additional Singapore Dollar scheme currency added
Contributions monthly in 7 currencies, via online system
Administered from 2 hubs in different hemisphers – 2 part-time basis
Annual staff newsletter
Online competitions to increase awareness
Co-sponsored additional voluntary contribution campaigns
Variable contribution rates, subject to seniority
Voluntary EE contributions
Group life and disability part of the solution
Lifecycle strategies
Additional Aus Dollar funds added
Additional Singapore Dollar scheme currency added
Contributions monthly in 7 currencies, via online system
Administered from 2 hubs in different hemisphers – 2 part-time basis
Annual staff newsletter
Online competitions to increase awareness
Co-sponsored additional voluntary contribution campaigns
36. 36 Shipping company A multinational shipping company
Tankers and oil service ships
Over 150 vessels
Worldwide offices
37. 37 Shipping company solutions Current benefit not valued by employees
Irregular payment frequencies – delays/mistakes in processing contributions
Mobile workforce
Regional differences
Recruitment & retention of key staff important
High number of lower paid staff needing provision Slight differences – e.g. retirement ages (60/62)
Not written under Trust
Compulsory EE contributions
Group life and disability part of package
Default fund (low risk) on joining
Simple fee based on % of contributions, invoiced to the employer
Slight differences – e.g. retirement ages (60/62)
Not written under Trust
Compulsory EE contributions
Group life and disability part of package
Default fund (low risk) on joining
Simple fee based on % of contributions, invoiced to the employer
38. 38 Shipping company solutions Current benefit not valued by employees
Irregular payment frequencies – delays/mistakes in processing contributions
Mobile workforce
Regional differences
Recruitment & retention of key staff important
High number of lower paid staff needing provision Self service, more funds, educational seminars
Non contractual + online contribution uploads from regional ‘hubs’
Offshore, online
4 plans – all slightly different
Wider fund choice + increased life and disability cover + 8 yr vesting scale
Non-earmarked plan introduced
Slight differences – e.g. retirement ages (60/62)
Not written under Trust
Compulsory EE contributions
Group life and disability part of package
Default fund (low risk) on joining
Simple fee based on % of contributions, invoiced to the employer
Slight differences – e.g. retirement ages (60/62)
Not written under Trust
Compulsory EE contributions
Group life and disability part of package
Default fund (low risk) on joining
Simple fee based on % of contributions, invoiced to the employer
39. 39 Oil services Large multinational corporation
Employing 100’s of different nationalities
Operating in over 46 of countries
Recruited 3,000 graduates in 2006
40. 40 Oil services company solutions Large, complex multinational
Recruitment & retention vital
Financially unsophisticated but astute & demanding members
Very mobile and geographically spread workforce
Many third country nationals
Needed ‘end of service’ gratuity solution
Self-service for members essential
2 Defined Contribution Plans
40 part-time scheme administrators in 40 offices!
Written under Zurich Trust
Low retirement age - 55
Compulsory EE contributions
Short 3 yr vesting scale (on ER contributions only)
ER contributions restricted to one managed fund
EE’s can choose from 3 managed funds
Website customised and new features added at their request (free of charge)
Multiple accounts per member – 5 or more is common due to end of service benefits
Bespoke educational material (co-branded)
Single fee based on a % of the contributions, invoiced to employer
2 Defined Contribution Plans
40 part-time scheme administrators in 40 offices!
Written under Zurich Trust
Low retirement age - 55
Compulsory EE contributions
Short 3 yr vesting scale (on ER contributions only)
ER contributions restricted to one managed fund
EE’s can choose from 3 managed funds
Website customised and new features added at their request (free of charge)
Multiple accounts per member – 5 or more is common due to end of service benefits
Bespoke educational material (co-branded)
Single fee based on a % of the contributions, invoiced to employer
41. 41 Oil services company solutions 2 plans, 3 administrators and locations
3 year vesting scale, low retirement age, free for members
Restricted fund range, bespoke co-branded educational material
Location codes
Offshore
Multiple accounts per member (5 is common)
Online system Large, complex multinational
Recruitment & retention vital
Financially unsophisticated but astute & demanding members
Very mobile and geographically spread workforce
Many third country nationals
Needed ‘end of service’ gratuity solution
Self-service for members essential
2 Defined Contribution Plans
40 part-time scheme administrators in 40 offices!
Written under Zurich Trust
Low retirement age - 55
Compulsory EE contributions
Short 3 yr vesting scale (on ER contributions only)
ER contributions restricted to one managed fund
EE’s can choose from 3 managed funds
Website customised and new features added at their request (free of charge)
Multiple accounts per member – 5 or more is common due to end of service benefits
Bespoke educational material (co-branded)
Single fee based on a % of the contributions, invoiced to employer
2 Defined Contribution Plans
40 part-time scheme administrators in 40 offices!
Written under Zurich Trust
Low retirement age - 55
Compulsory EE contributions
Short 3 yr vesting scale (on ER contributions only)
ER contributions restricted to one managed fund
EE’s can choose from 3 managed funds
Website customised and new features added at their request (free of charge)
Multiple accounts per member – 5 or more is common due to end of service benefits
Bespoke educational material (co-branded)
Single fee based on a % of the contributions, invoiced to employer
42. 42
43. 43 Common themesConsistent messages across all industries Differentiation of benefits offering is important
Local solutions don’t always suit a Mobile workforce – tax less of an issue when comparing overall cost / benefits
Wide geographical spread of employees
Used as a top-up to basic, local provisions
International mobility of employees is crucial to business success
Employee understanding and levels of investment knowledge are highly variable
Plan cost efficiency important – for set-up and running
Investment choice & flexibility important - basic to sophisticated
Quality service and web enabled self-service essential
Current benefit not always liked, understood or valued by employees
Ability to configure to specific company requirements highly desirable
44. 44 Common themesConsistent messages across all industries Differentiation of benefits offering is important
Local solutions don’t always suit a Mobile workforce – tax less of an issue when comparing overall cost / benefits
Wide geographical spread of employees
Used as a top-up to basic, local provisions
International mobility of employees is crucial to business success
Employee understanding and levels of investment knowledge are highly variable
Plan cost efficiency important – for set-up and running
Investment choice & flexibility important - basic to sophisticated
Quality service and web enabled self-service essential
Current benefit not always liked, understood or valued by employees
Ability to configure to specific company requirements highly desirable
45. 45 Thank youAny questions?