If you do not make use of a proper compensation management software solution, you will watch your competition outgrow you.
The terms “compensation” and “management” taken on their own are essential to the functions of your company in different but interconnected ways. However, by marrying the two terms, you can significantly fuel the growth of your company.
Valued, high performing employees are essential to the healthy ecosystem of your business, and properly implemented compensation practices are the glue that binds those employees to your organization for the long haul.
So why even bother and what is compensation management, to begin with?
What is it? Specialized software that works in conjunction with your company’s processes, policies, and procedures to streamline total compensation for your employees—from personal days, vacation time, benefits, and more.
Why Do it? Maximize returns by rewarding your employees in a timely, organized,...
Leave management, it can feel…complicated. The core idea—a defined process that’s consistently used to handle all time-off requests, and to track the time employees are away from work—seems easy enough. But, as every HR professional can attest to, leave management is a process that’s easy in theory, but not necessarily in execution.
The logistical tangles around effectively managing employee away time can create real challenges. Devising effective policies and implementing them can feel like an uphill battle. Leave management requires organization, dedication and understanding, not just from your HR team, but managers and employees as well.
While every organization’s leave management will be designed specific to its needs, there are some core aspects that remain vital to all leave strategies and it’s those essential elements we’ll discuss in this article.
You have a leave management strategy in place, but it’s overly...
With the Pandemic raging on and the economic fallout on the horizon, for those businesses who can pull through to the other side, 2021 will be a year of saving and reinvesting back into the business. Here are the 5 ways with an immediate ROI.
#5 Ditch Your High Ticket Benefit Consultants
Benefits aren’t rocket science and you shouldn’t be paying for rocket fuel when there are many great boutique firms (outside of the large consultants) who can deliver far more value for you your employees. there are a good number of us out there adding a tremendous amount of value around well being and financial literacy in addition to insuring your land design is impactful and cost-effective. If you’re consulting fees are more then 8% of your total benefit premiums you can do better.
#4 Renegotiate Your Mobile Phone & Internet Contracts
With a new entrant into the mobile phone space, Shaw is disrupting the internet and mobile phone plans across the...
Investing into an employee benefits strategy makes good financial sense as it’s a way to commute “income” to an employee on a tax-free basis while helping them maintain their health so they can be productive at work. It’s a classic win-win. However, there is another side to this coin.
Benefit plan premiums generally go up every year. As your employees age, submit more claims, inflation creeps up and practitioners charge more. You’re feel-good-benefits-plan can become a financial annoyance if it’s not set up properly at the onset.
First, know this. The big insurers LOVE to buy new business. Most of the big insurance companies are the big offenders here. Until a group plan has longevity, predictable claims experience, for small businesses; we’re not convinced these carriers are always best aligned for the needs of these types of enterprises in the early days of their benefits plan offering. Sure, some will argue this point and there are...
Employees expect that managers or HR are tracking their time off. There are instances when they book time off yet they’re not certain if they have the time available to them.
An HRIS can help you and your employees keep track of how much time someone has accrued and how much time they’ve used. Many HRIS’ include employee self service modules, which means your employees can keep track of their vacation and leave accruals, as well as monitor how many days off they have left.
Employees who can easily access their leave information through a self-service platform tend to be more mindful of their time off requests. Self-service also makes it easy for employees to see how much time is available to them (meaning managers and HR are not bombarded with questions about leave).
Automate How You Track Employee Leaves Offer More Effective Scheduling
One major challenge—particularly when dealing with vacation requests—is that many employees will request the...
One of the most overlooked healthcare costs is that of benefits management itself. Paper-based enrolment forms are frustratingly complicated, prone to errors, and a major drain on HR resources. But thanks to modern benefits solutions, they’re also becoming obsolete.
Putting pen to paper to fill multiple pages of enrolment forms is a painful experience for plan members – especially the younger generation – and plan administrators, who have to chase employees to get the forms back, decipher handwriting, then transfer the information into an admin portal, which is not always user-friendly.
Automating group benefits management means more than just convenience; it can reduce costly information errors by up to 30%, and save countless hours sifting through spreadsheets and paper forms. It’s a sound solution to mitigating risks related to the handling of sensitive personal data required from group benefits plan members.
While many Canadians still depend on paper...
While most employers are evaluating the physical workplace to determine how to keep employees safe, addressing employee anxiety and workplace mental health are important considerations. Many employees report symptoms of anxiety and even panic when thinking about the return to work. A majority of Canadians (83%) say that mental and physical health are equally important during this time.*
What can employers do during this unprecedented return to work? Take a 360-degree view, and consider all aspects of employee health and safety. Organizations need to ensure they have taken into account employees’ emotional need for confidence in the return to the work plan. There needs to be a process and mechanism for hearing and considering employees...
Did you know that the CAP guidelines were enacted by the Joint Forum of Financial Market Regulators in 2004? I’m amazed at the number of businesses I meet that are not really sure about what this means to them.
If you are an employer and you have a Defined Contribution Pension Plan, group RRSP plan, group RESP plan or a deferred profit-sharing plan, then you have a set of responsibilities under the Capital Accumulation Plan Guidelines.
According to the 18-page document put together by the regulators, employers have a new set of responsibilities. Here is a summary of the requirements broken down into four key themes: Governance, Communication, Process and Documentation.
One of the themes of the CAP guidelines is the theme of governance. Generally speaking, the plan sponsor or employer is required to outline the criteria for establishing the plan, the service provider and the investments being offered through the plan. The best...
Reserves are established for high volume benefits such as Health and Dental so that in the event the group terminates coverage, there is a buffer of premium to pay claims that were incurred prior to the termination date of the policy, but submitted after the termination date of the policy.
Insurance companies are required by the Insurance Act to collect reserves for claims that have been incurred but not yet reported.
Reserves are established at the first renewal with a new carrier and are usually expressed as a percentage of paid premium, or as a percentage of paid claims. At each subsequent renewal, the IBNR is recalculated based on paid premium or paid claims from the previous renewal period.
IBNR is 1 of 7 factors that influence group benefit rate adjustments.
Credibility measures how predictable past claims experience is in determining future claims.
Larger groups have greater credibility since claims for each employee have less impact on the overall claims experience. For example, with a group of only five employees, each member represents 20% of the group, but with a group of 50 employees, each member represents 2% of the group. The greater the number of employees, the more stable, predictable, and reliable the claims experience will be; therefore, more “credible”.
Each carrier has their own formula for calculating credibility, which takes into account average number of employees by month and number of years with the carrier (to a maximum of...