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

1. Unlock the Door to Employee Retention With a Great Benefit Plan! Michael Nadler 905-785-0084 michael@benefitsource.ca

2. Why Benefits? • Attract quality staff • Employee retention • Increased productivity • Improved morale • Reduced absenteeism • Encourage healthy workplace

3. 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

4. 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

5. 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

6. Importance of Wellness • Over 50% of employees experience role overload while trying to balance work / family leading to a 20% increase in absenteeism

7. Costs of Turnover • 5 times annual salary for professional staff • 20% of annual salary for lower level employees Source: Benefits Canada (02/02)

8. Considerations • Corporate culture • Demographics: • Gender • Age • Single / family split

9. 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

10. 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

11. 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

12. Funding • Insured • Administrative Services Only (ASO) • Self insuring • Retention • Self insuring with monthly premium contribution • Year end reconciliation

13. 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

14. 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

15. 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.

16. Summary COMMUNICATE COMMUNICATE COMMUNICATE

17. 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

18. 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 Other Services

19. Thank You!!! Michael Nadler 905-785-0084 michael@benefitsource.ca