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 country. This gives you ample firing power to explore cost-effective mobile data plans. Canadians have long been paying too much for their data and Shaw seems to be levelling the playing field early. Let's hope they will sustain their deeply discounted rates.
#3 Get a Higher LTR on Your Benefit Plan
A dirty little secret in the benefits industry is the Loss Trend Ratio. The LTR is an indicator of how much profit is baked into the plan for the insurance companies. Many Brokers and Consultants don’t disclose this to their clients and it’s a great indicator into how fiscally efficient your benefit premiums are. Higher the number is better. An LTR of 100 would mean there is no profit in the plan for the insurance company, while 0 would mean 100% of the premiums are getting used to administering the plan. If your LTR is 87 or lower you’re getting hosed.
#2 Automate Repetitive HR Admin Tasks
2021 will be the year of automation for many businesses. As staff numbers get scaled back, independent HRIS systems (not tied to a payroll provider) will be key. Look for an HRIS system like Collage that is agnostic towards benefit and payroll providers and stores the information and backs up data in Canada.
#1 Shift Income to Health Spending Accounts
Benefits provide an immediate ROI for the employee, and employers can reduce their payroll expenses instantly by shifting the smallest amounts of income over an HSA. This is a great way for those smaller companies not offering benefits to retain their talent while making more efficient use of their overall compensation dollars.
Tyler Hoffman is the Founder of OnPoint Employee Benefits. A boutique firm specialising in benefits, productivity and wellness. Lately, he’s been helping business remove benefit premium wastage. He can be found at www.onpointbenefits.ca