NEWSLETTER

Creativity in Benefit Design
January 2008

In the heated Alberta economy, employers are initiating and finding ways beyond traditional health and dental plans to reward and retain their employees. Companies find they have to think and act outside the box.

Here are some of the more common areas of creative benefits that employers are currently using:
  1. Financial benefits: these types of benefits provide real and tangible financial savings or opportunities for workers. Some examples are:
    • Group registered retirement savings plans: these offer more choices and lower fees than individual plans.
    • Group registered education savings plans: these programs are designed for employees with children. They permit earnings on investments set aside for education to grow tax-free. In the last few years, the RESP providers have designed group plans for carriers.
    • Group mortgages: several different insurance companies offer group mortgages to their clients. The employee is free to negotiate both the terms of the mortgage and the amortization period with the carrier. When the employee leaves the company, the mortgage is transferred to an individual mortgage.
    • Group critical illness coverage: this gives a lump sum tax free payment to an insured person who contracts a specified illness such as cancer or heart attack and survives it for a certain period of time. For those workers who cannot obtain any coverage on a personal basis because of insurability issues, this product will offer some basic coverage options. As well, it can be changed to a personal plan when the employee ceases employment.
    • Group Home and Auto Insurance: discounts of 10-15% can often be arranged with home and auto insurance companies.
  2. Family benefits: these benefits revolve around family needs, and include the following:
    • Child care: some employers provide on site daycares while others assist in the location and selection of appropriate providers.
    • Elder care: companies put together resources for workers that can assist with the growing portion of our population that is aging. From residences to recreational facilities and programs, these can be invaluable for those employees who need to look after parents.
  3. Group purchasing power: employers can negotiate preferred pricing on any number of products or services. For example, the company can offer wholesale pricing or discounts on items such as:
    • Computers
    • Cellular telephones
    • Automobiles (fleet pricing)
I would really appreciate knowing from you some of the different ways you are becoming more creative with your benefits. Please email or phone me with them and I will publish the results in the next newsletter.

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