DESIGNING & ADMINISTERING FLEXIBLE BENEFITS PROGRAM

DESIGNING &

ADMINISTERING

FLEXIBLE BENEFITS

PROGRAM

April 21, 2020

Mr. Patricio Picazo, FLMI

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STRATEGIC HUMAN RESOURCE MANAGEMENT

HR PLANNING

&

STAFFING

TRAINING

&

DEVELOPMENT

LEADERSHIP

DEVELOPMENT

CAREER

DEVELOPMENT

&

SUCCESSION

PLANNING

PERFORMANCE

MANAGEMENT

REWARDS

MANAGEMENT

PERSONNEL

RELATIONS

PERSONNEL

WELL-BEING

VISION

MISSION

STRATEGY

VALUES

PERFORMANCE

MANAGERSHRD

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Before

• Police or enforcer of rules and policies

• Records keeper

• Recruiter

• Trainer

• Administrator

Source: John ClementsConsultants

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Now

• Talent Manager

❖ Talent Economics

❖ Talent Dynamics

• Marketing Manager

• Strategic Partner of theBusiness

Source: John ClementsConsultants

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Is about…

Ensuring HR is aligned to support

achievement of business goals

through an in-depth

understanding of the business

and its people – coaching the

business to consider people

implications of options/decisions.

Is about…

Sustaining one’s professional

credibility, personal integrity and

moral ascendancy in the delivery

of excellent and cost-effective HR

services and results, serving as

living examples of the Core

Values of the Company.

Is about…

Being genuinely concerned of and

deeply sensitive to the voice of the

organization and its people,

ensuring competencies and

engagement are maintained at

productive levels at all times.

Is about…

Constantly challenging the status

quo, enabling change through

people, facilitating the design of

change interventions that take into

account business and people

needs and coaching managers to

lead and drive a culture of change.

Partnering

with the

business

People

Effective-

ness

Personal

Mastery

Engaging

people in

change

Building and Sharing

HR Knowledge ww

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A. Perspective: Total Reward

B. Traditional Benefits Program and Current Context

C. Flexible Benefits Program

1. Definition

2. Why Flexible Benefits

3. Types of Flexible Benefits Program

4. Process of Development

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• Total Rewards Context

• Principles and Concept

• Walkthrough in Design

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TOTAL REWARDS

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GLOBALIZATION

TECHNOLOGY

CONVERGENCE

PLURALISTIC POST

MODERN CULTURE

ENTERPRISES EMPLOYEES

•Earnhigherrewardstostayon topofeconomic realities

•Capacity ofemployerto provide continuing employment•Healthcare•Futureretirement

•Engagement•Retention

•Continuingcompetencydevelopment•Managingcosts

FINANCIALCRISIS ww

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ALLEMPLOYEES HIGH POTENTIALEMPLOYEES

1 Challenging work 1 Base salary 1 Challenging work 1Career advancement

opportunities

2 Base salary 2 Job security 2Ability to impact

performance2 Base salary

3

Career

advancement

opportunities

3

Career

advancement

opportunities

3

Career

advancement

opportunities

3 Job security

4Health/Wellness

benefits4

Organization

reputation4 Base salary 4 Challenging work

5 Organization values 5Convenient work

location5 Organization values 5

Organization

reputation

6Organization

reputation6

Learning

opportunities6

Organization

performance6

Learning

opportunities

7Organization

performance7

Health/Wellness

benefits7 Job autonomy 7

Convenient work

location

SOURCE: TW TR STRATEGY for 21st

CenturyEmployees’View

Employers’View

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• In what ways does the employee value proposition — and the specific reward programs that make it real in employees’ eyes — need to shift to reflect the enormous changes taking place in the external environment?

• What should rewards look like when uncertainty and instability are the“new normal”?

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• The EVP is an implicit contract, or deal, between

employer and employee, articulating the nature of

the experience the employer offers in exchange for the employee’s dedication, productivity and

sustainable engagement

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Total Rewards

Company Practices

Work

Opportunities

Quality ofLife

Engagement

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Top Total Reward Priorities

Cost of providing benefits

The ability of reward programs to attract, motivate and retain talented employees

Clear alignment of TRwith business strategy and brand

The willingness of employees to pay for an increasing cost of benefit plan coverage and to manage their own reward budget

The ability of reward programs to accommodate the varying needs and interests of different generations w

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Broadens definition beyond traditional compensation and benefits

Offers Managers more reward options to consider that will contribute towards business strategies & organizational goals

Enables organization to “cover more grounds” in achieving desired objectives

Focuses and drives behavior over longer period of time

Recognizes the employee as a “whole” person

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They hold that people work for more than just pay,

they are also looking for an organization which

• has a powerful vision of where it is going and how it

plans to get there• wants to foster individual growth in acquiring skil s

that prepare them to add value to the business.

Total Reward Components

Individual Growth CompellingFuture

TotalPay PositiveWorkplace

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• Total reward strategy is a holistic approach aligning with

business strategy and people strategy; it encompasses

everything employees value in their employment relationship

like compensation, benefits, development and the work

environment (Kaplan, 2007).

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EngagingWork

Experience

Business

Performance&

Capability

TR Value Proposition

Cash

Compensation

Learning &

DevelopmentWork

Environment

Performance&

RecognitionPEOPLE

STRATEGY

ORGANIZATIONALCULTURE

BenefitsBUSINESS

STRATEGY

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• Connects with the business strategy to create a high

performance culture.

• Creates affordable and sustainable costs

• Generates maximum return on the reward program

investment.

• Supports the “employment brand. ”

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CashCompensatio

n

Benefits

WorkEnvironment

Learning&Developmen

t

Performance&Recognition

ALIGNMENT

FLEXIBILITY

MIX LINKED

DE

SI

GN

DE

LI

VE

RY

CommunicationGovernance&Administration Measurement

TOTAL

REWARDS

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ALIGNMENT

• WithBusiness

Strategy

• WithPeople

Strategy

• Sustainability

MIX

• Cash

Component• Fixed

• Variable• Benefits

• Recognition

LINKED

(INTEGRATION)

• Performance

Management• Competencies

• Career

Management• Talent

Development

• Culture

FLEXIBILITY

• Employee

Segmentation

• Work Structure

& Practices

• Individual

flexibility

DESIGN

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FRAMEWORK

CASHCOMPENSATION

Pay provided by an employer to an employee

for services rendered (i.e. time, effort and

skill). Includes base salary, both fixed and

variable pay tied to levels of performance.

BENEFITS

Programs an employer uses to supplementthecash compensation that employees receive.

These health, income protection, savings and

retirement programs provide security for

employees and theirfamilies.

WORK ENVIRONMENT

A specific set of organizational practices,

policies and programs, plus a philosophy, that

actively supports efforts to help employees

achieve success at both work and home. ww

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PERFORMANCE& RECOGNITION

Performance: The alignment of organizational, team and

individualeffortstowardtheachievement of businessgoals and

organizationalsuccess.It includesestablishing expectations,skill

demonstration, assessment, feedback and continuous

improvement.

Recognition: Acknowledges or gives special attention to

employeeactions,efforts,behavioror performance. It meets an

intrinsicpsychologicalneed forappreciationofone’sefforts and

can support business strategy by reinforcingcertain behaviors

(e.g., extraordinary accomplishments) that contribute to

organizational success.Whether formal or informal,recognition

programs acknowledge employee contributions immediately

after the fact, usually without predetermined goals or

performancelevels thattheemployeeis expected toachieve.

Awards canbe cash or noncash(e.g.,verbal recognition,

trophies, certificates,plaques,dinners, tickets,etc.)

FRAMEWORK

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LEARNING &DEVELOPMENT

Development: A set of learning experiences

designedtoenhanceemployees’appliedskillsand

competencies.Developmentengagesemployees to

perform better and engages leaders to advance

theirorganizations’peoplestrategies.

Career Opportunities: Involve the plan for

employees to advance their career goals. May

include advancement into a more responsible

positioninanorganization.Thecompanysupports

career opportunities internally so that talented

employees are deployed in positions that enable

them to deliver their greatest value to the

organization.

FRAMEWORK

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• Cash Compensation

▪ Base salary

▪ Guaranteed allowances & bonuses

▪ Variable compensation

• Benefits

• Work Environment

▪ Recognition Programs

▪ Work Life Programs

• Learning & Development

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Base Salary& Cash

Allowances

PerformancePay

Benefits

Recognition

WorkLifeBalance

Learning & Development

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Guaranteed Cash

• Base salary

• Allowances

Variable Pay

Incentives

• Gainsharing

Benefits

• Retirement

• Medical

Perquisites

• Representation

• Executive Leave

• Car

Intrinsic value of job or individual

• Setsbasic lifestyle

Performance

• Link pay toperformance

• Provides differentiation based on levels of performance

Membership

• Provides protection and security

Status and Recognition

• Enhance image and recognition

• Business representation purposes ww

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Recognition Program

Generally non-financial form of reward that highlights certain desired behavior that supports the Company’s culture:

Examples

• Model Employee Award

• Service Award

• Top Sales Manager

Work LifeProgram

Addresses the “Work Life Experience”

• Acknowledgement, appreciation and recognition

• Balance of work/life

• Culture

• Development

• Environment ww

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OBJECTIVES Base

Salary

Incentive

Programs

Benefits Recognition

Programs

Work/Life

Programs

Attract right kind ofassociates

Retain critical talent

Drive Performance

Shape Desired Behavior

Recognize extraordinary effort

Help Employee Meet Needs

Improve Quality of WorkLife

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TOTALREWARD

Integration

Alignment

LegalCompliance

IndividualValuation

Cost Effectiveness

Competitiveness

Lineof Sight

ProgramMix

FirmLevel

IndividualLevel

CommunicatingDesired Behavior

Managing Changes

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1. Alignment with theFirm’sGoals

2. Integration with HRinterventions

3. Program Mix

▪ Fixed and Variable

▪ Compensation and Benefit and Recognition

Programsto the TotalPackage

4. Cost effectiveness oroptimizingvalue

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5. Compliance with statutoryrequirements

6. Competitiveness: Level of Compensation vs. Market

7. IndividualValuation

a. Position: InternalEquity

b. Performance

c. Person

8. Line ofSight

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9. Serve as a communication device to nurture and emphasize desired entrepreneurial activities and to signal legitimacy to external stakeholders

10. Managing changes in compensation levels

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• Coming up with competitive compensation packages to

attract and retainthe rightquality of people

• Balance betweenhaving formal programs and costimplications

• Suitabilityto the firm’scultureand itsstage of development

• Highercost of ‘purchasing benefitsprograms’ due tosmaller

employee numbers

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• Infrastructure required for implementing a good total

reward program

▪ Access to technology

▪ Availability of other formalmanagement systems

(e.g. planning, performance measurement)

▪ Cost of availing expertadvise

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• Identifykey behavior that willberewarded

1. Creativity and innovation

2. Willingness to take risk

3. Dealing with ambiguity

• More ofvariable compensation tosupport entrepreneurial

growth of theorganization

▪ Short termincentives

▪ Long term incentives: stockacquisition plans

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• Variable Pay

▪ Allow the firm greater flexibility by sharing risk and de-

emphasizing base pay

• Firms can reinvest in the business when it is most vulnerable or give more incentives to its people when times are good

• Examples: profit sharing, organization-wide

incentives

• Performance-based benefits programs

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• Culture of Recognition

• Alternative delivery structures

▪ Flexible versus standard

▪ Maximize technology

▪ Explore outsourcing

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TR PHILOSOPHY &

COMPONENTS

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Does my company have a

benefit philosophy? What is it?

What are the benefits given

to employees in mycompany?

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REWARD PHILOSOPHY?

Organizational Objective

• Which objectiveis being supportedby thereward program:

attraction/retentionof keytalents? Driveperformance?

•What will determine job value/ Individualvalue

•Performance

•Competence

•Scope ofwork

•MarketPay

Factors that determineReward

• Howmuch will go into the fixedcomponent (basesalary,guaranteed

allowances? Into thevariablecomponent?RewardMix

• Which companies will we be comparedwith?

• How shall theorganization position itself vis a visthis comparator organizations?

• What are thedifferentgroups of employees?

• How will their rewardmixand programsbedifferentiated

49

Differentiation

among Other

Companies

Differentiation among Employee

Groups

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• Our Compensation Programs will be:

▪ Competitive with appropriate peer group

▪ Flexible to address specific business needs

▪ Inclusive of salary, benefits and incentives

▪ Performance-linked to keybusiness results

▪ Equitable in their treatment of associates

▪ Team-oriented to supportcooperation

▪ Developmental to support a learning

environment

▪ Communicated clearly to all associates

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BENEFITS

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• Meet the different welfare needs of employees

and their families

• Provide financial assistance to the employees

• Help contribute to organizational objectives in attracting

and retaining talents

• Manage benefits costs to ensure

sustainability

• Establish most efficient and effective delivery system in

administering benefits

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• Standard benefits for all employee groups

• Generally tied to membership and tenure within the organization

• Typical benefits

1. Healthcare for employees and dependents

2. Paid leaves

3. Life insurance

4. Retirement

5. Uniform

6. Allowances

7. Rice

8. Loans

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• Employees are equally responsible for planning for

• their welfare needs and that of their family

• The Company shall seek to establish a minimum level of

benefits to ensure that its employees are provided with

basic welfare services and programs that wil in turn ensure

a healthy and productive workforce.

• The Company shall establish cost effective delivery systems to support the implementation of its benefits programs

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• The vacation leave is intended to enable the employees to have a time to rest and recharge for them to continue to be productive

• The sick leave is intended to provide for continuity of income during periods when they are disabled to perform their work due to illness or accidents

• The life insurance is designed to provide financial assistance to the family of the employee in case of their untimely demise

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• The medical benefit is intended to enable the

employee to avail of services that wil enable them to

maintain a healthy state of wellbeing and/or recover

from their illness and become productive again at the

earliest time

▪ The employees will have primary responsibility for

their dependents’ medical requirements. The

Company shall provide assistance to enable them

to provide for this need.

• The educational allowance is a financial

assistance to aid in the education of the

employee’s dependent children

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• The rice benefit will ensure that the employees and

their families will have a source of this basic

staplefood

• The Service Award recognizes employees who have

remained loyal to the company

• The retirement benefit will enable the employee to

transition to new life after serving with the Company

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• Changes in retirement age

• Stressors on social insurance

▪ Old-age retirement

▪ Medical expenses

▪ Long-term care

• Convergence between less and more

developed nations

▪ Greater need to enhance social or occupational

insurance in developing nations

▪ Cost of employment will increase in developing

nations

Source :Lockton ww

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• Decreasing fertility rates combined with aging will impact age dependency ratios globally

• Fewer working people to supportnon- working

populations

• Added strain onsocial insurance

• Greater reliance on occupational and individual

retirement savings

• Greater participation of women in the workforce

Source :Lockton

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Source :Lockton

• Women participating more significantly in the workforce

▪ Greater flexibility and protections to promote working

women having children

▪ Increased child care grants inEurope

▪ Greater equality among genders

• Older workers on flexible working arrangements

• Mobility and migration wil continue to grow

▪ Easing of immigration restrictions to be expected as economies improve and labor market tightens

• Redefinition of the employee value proposition

▪ Greater employee power in defining how workis

assigned, assessed, and rewarded ww

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Source :Lockton

❑ Growing importance of benefits from “nice to have” to a

“must have”

❑ Adding flexibility to benefitsoffering

• Align expense with value perception

❑ Assignment opportunities

❑ Wellness and prevention

❑ Annual check up, biometric screening, health risk

assessment, employee assistance

• Better communication of benefits on offer

• Growth in lifestyle benefits as differentiator

• Gym membership, shopping discounts, etc.

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FLEXIBLE BENEFITS

PROGRAM

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• Flexible Benefits

▪ Gained more acceptance as organizations deal with

more diverse Workforce

▪ Developments in information technology has removed

barriers in administrative support

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Flexible Benefit Plans are formal arrangements wherein

• Employees are provided with a range of employer

funded benefits and/or a separate benefit spending

allowance

• Employees choose benefits from a menu of options using

their allowance, downgraded benefits, and salary

contributions

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• Choice could be from

▪ Among different levels of the same benefit

(different levels of health plan), or

▪ Among different types of benefits (e.g. insurance,

dental coverage, vacation)

• With flexible benefit schemes, employees have the choice to retain their existing salary and simply vary the levels of benefits within their allowance, or adjust their salary up or down by taking fewer or more benefits respectively, depending on the offer.

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• AN ALTERNATIVE WAY OF PACKAGING BENEFITS

▪ From standard and common content for all to a

differentiated and customized content

▪ From defined benefit and cost to varied funding

and benefits

▪ From company prescribed to employee

participation and determination

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• Changing employeedemographics =Changing

demands

• Positive impact onemployees

▪ become aware of thevalue of benefitsand not

takethem forgranted

▪ able to tailorbenefitsaccording to their personal

situation

“Employee satisfactionleads tocustomersatisfaction”

• Long-term costcontainment

• Promotescultureof shared responsibilityand

empowerment

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Mid 30s to 50s

Above 50s

20s toEarly30s

• Cash• Annual

leave

• Car• Career/

training

• Life/medical• House• Career

progression

• Work-life balance

• School

funding

• Medical• Work-lifebalance• Universityfunding• Retirement

planning

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• A flexible benefit scheme can form an integral part of

the reward strategyand should work in conjunction with

the organizational goals andstrategies.

• Ithas been found that introducing aflexible benefit scheme will

increase the perceived value of the reward package

offered to employees, at no additional cost to the

organization.

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• FROM EMPLOYERS PERSPECTIVE

▪ Employers provide benefits at a known cost that is fixed, irrespective of the choices that employees make, allowing employers to cap future costs.

▪ Employers are seen to be more responsive to the needs of an increasingly diverse, demanding and ageing workforce.

▪ A competitive benefits package is valuable in

attracting and retaining key personnel.

▪ Helps to align the organizations reward strategy

to both HR and business strategies.

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• FROM EMPLOYEES’ PERSPECTIVE

▪ Employees choose benefits to meet their needs

which means they value these benefits highly.

▪ Employees have a true idea of the ful worth of the

benefits package they receive and employers do not

provide benefits that are not valued.

▪ Employees are given a sense of control and

involvement by having a choice.

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The needforsecurity.

• Employees choose benefits & make changes that match their individual circumstances.

• Allows employees to avoid duplication coverage between spouses

Theneed forwellbeing&security

• Flexplans can act as workplace recognition & rewards programs• Flexplans can adapt to changing needs and reduce stressfor employee

Theneed thatdiversityintheworkforcebrings

• Flexbenefits allows for individual preferences to be met.• Allows employee to choose what they value the most.

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1. Modular

▪ Choice of pre-designed benefit packages

▪ Each package contains a fixed combination of benefit

plans

PACKAGEA PACKAGE B

Vacation Leave of

10 Days

Vacation Leave of

20 days

Healthcare withMax

Coverage of300k

Healthcare withMax

coverage of150k

Life Insurance –3xAnnual

Salary

Life insurance of2x

annual salary

Dental care Gym membership ww

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2. Core-Plus

▪ Combination of traditional benefits and flexible

benefits

▪ Core benefits are maintained and provided to all

employees

▪ Employees are given choice to add benefits above the

core level from a selection. Employees can “purchase”

these benefits through the credits given them every year

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BaseSalary

Total Reward

Flexible Benefits Program

•Medical

•Life

Insurance

•Vacation

•FSA

Incentive

/ Bonus

Program

Core

Benefits

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Employee

Credits

Salary

Deduction

Flexible

Benefits

•Vacation

•Option I

•Option II

•Medical

•Option I

•Option II

•LifeInsurance

•Option I

•Option II

• FlexibleSpendingAcct

CashHealth

Reimbursement

Acct

Funding

Options

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3. Ful Flex

▪ All benefits are part of the selection that employees

can choose from; there is no core program

▪ Employees can design their own benefits package

from the available selection

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FLEXBEN

PlanDesign

BenefitsValuation

Funding

EnrollmentITSystem

Communication

BenefitsProviders

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Business Objectives

Market Positioning

Employee Requirements

Financial Efficiency

Benefit Strategy

•Administration

•Cost

•Providers

CurrentBenefits

•Surveys

•FGDsEmployeeResearch

•Trends

•New

IdeasInnovation

•External

researchMarket Benchmarking w

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1. Projected uptake onbenefits

▪ Estimate of participants selection of a benefitwhich becomes basis for pricing

2. Adverse selection

▪ ALL benefits within flexible benefit schemes are priced on the basis of a predicted number of selections. Where employees make significantly different choices, these are regarded as ‘adverse selections’. For the success of the scheme, the relative values of the benefits should be set to avoid too many adverse selections.

3. They should also be arranged so that the employees are not

encouraged to make selections that will jeopardize their

own financial and physical security. The inclusion of core

benefits guarantees a minimum level of protection. ww

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4. BALANCE between flexibility thatencourages inappropriate choices, and too narrow a choice that does not meet the employee’s expectations.

4. Before implementing a flexible benefit scheme you may

find it worthwhile to survey your employees to determine

the type of benefits they favor and value. This wil also help

to maximize the value of the package for both you and

youremployees.

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• Drivers/

Objectives

• Assessment ofcurrentbenefits

FEASIBILITY

DESIGN &DEVELOPMENT

• PlanType

• Features

• Communication

• Enrollment

Continuing

Admin

IMPLEMENTATION

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1. Definedriversand objectives forthe FlexBen

Program

2. Review currentbenefitsprogramsand

administrative infrastructure

3. Research on employeeprofileand needs

4. Assessmentof benefitsbased on objectives and

employee needs

5. Develop conceptualplan design

6. Determine plancomponents

7. Prepare cost analysisof development and

implementationstructure

8. Benefit-costanalysis

9. Recommendation ww

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• PLAN DESIGN

• PRODUCT(Benefits)

• PRICING

• PROMOTION(Communication)

• DELIVERY

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PLAN DESIGN (Model)

1. Considerations

a. Maturity of employees to choose

b. Administrative capability

c. Cost implications

2. Core Plus

a. Ensures minimum coverage

b. But provides for enough flexibility

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PRODUCT (Benefits) and PRICING

1. Benefits to be included in the plan

a) What can be increased / reduced

b) What can be added/ removed

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Flex Ben

Retirement

Leaves

Medical

Coverage

Dental Coverage

Childcare/ Eldercare

Gym/ Wellness Programs

Travel

Car

Allowance

Life Insurance The identification of

benefits to be

included must not

just be a shopping

list for the employees

to buy but considers

both business and

employee

objectives.

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PRODUCT (Benefits) and PRICING

2. Benefits valuation (pricing): determines how much they

have to pay to ‘acquire additional benefits)

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Benefits PRICING

1) Salary related

2) Group rates

3) Market rates (providers)

4) Cost to the employee and to the provider

5) Caution: potential impact of adverse selection

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Benefits Funding

How wil the PURCHASE of the desired benefits be funded?

1. Employers’ credits

2. Salary Contribution

3. Voluntary Benefits Changes

4. Flexible Spending Account

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DELIVERY

1. Annual enrollment

2. Administrative system to track selections and advise

providers/ administrators

3. Communication materials

4. Administrative Setup

a. In-house: HR, IT,Finance, Legal,

Procurement

b. Outsourced

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BENEFITS

• Increased employee

satisfaction

• Cost management

• Communication of

• total compensation

• Leading edge

• reputation

• Contributes to employee attraction, retention and engagement

COST

• Additional

administration

• Implementation and

ongoing cost

• Co mmunic ation

challenge

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WHY COST MANAGEMENT?

1. Reduce employee pressure for new benefits/

perquisites

2. Encourage those with coverage elsewhere to re-allocate

their benefits to another

3. Awareness of cost of each benefit &

compensation program

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• Drivers/

Objectives

• Assessmentof

currentbenefits

FEASIBILITY

DESIGN &DEVELOPMENT

• PlanType

• Features

• Communication

• EnrollmentContinuingAdmin

IMPLEMENTATION

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III. ENROLLMENT

A. Form

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III.ENROLLMENT

FEATURE CODE AMOUNT

I. BENEFITSCREDIT 30,000

II. BENEFIT OPTIONS

A. Insurance Core 500

B. HealthCare(for Employees)

Core 3,000

C. Health Care(forDependent

D 0

D. VacationLeave E 7,500

E.Rice D 0

Subtotal 11,000

III. Difference(I-II) 19,000 ww

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ENROLLMENT

ON-GOING ADMINISTRATION

BENEFITSDELIVERY

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GENERAL GUIDELINES

1. Once a year enrollment

2. Outside of regular annual enrollment

a. New hires

b. Lifestyle changes

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A. Planning for Enrollment

B. Provision of Enrollment Materials

C. Collection/ Consolidation of Accomplished Enrollment

Forms/ Materials

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COMPLEXITY OF ENROLLMENT

1. Plan Design

2. Communication

3. Organization Structure

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Planning

1. Data gathering

a. Employee Data

b. Benefits –related data

2. Calculation

a. Determine credits, options and price tags

3. Communication Plan

a. Identification and development of

communication materials: print, video, online

b. Production of all communication materials

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DISTRIBUTIONOF ENROLLMENT MATERIALS

1. E-mail/ Regular mail

2. Online

COLLECTION OF ACCOMPLISHED ENROLLMENT MATERIALS

1. Review to ensure completenessand

correction

2. Print and send confirmation statements

3. Update other systems

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UPDATE OTHER SYSTEMS

1. Insurer

2. Healthcare Provider

3. Benefits Administration

a. Leaves

b. Rice

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“The most important elements

in ensuring the success of A

flexible benefit scheme are

effective communication and

education."

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• Introduce the concept of flexible benefits, and the features of

theplan

• Guide the employees through the coverage, the options

available, the decisions and cost implications of their

decisions;

• Assist managers in helping the employeesinthe enrollment

process;

• Provide sufficient ongoing administration to ensurecontinued

acceptance of the program and effective useof the

benefits

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• “a written statement of what communication actions you will

engage in to support the accomplishment of specific

organizational goals, the time frame for carrying out the plan,

thebudget, and how you willmeasure the results.”

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AUDIENCE KEY

MESSAGE

CHANNEL/MEDIA

RESPONSIBILITY TIMETABLE

Management

PartnerProviders

Administrators

Union

Employees

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A. Pre-Enrollment

1. Management Briefing

2. Employee announcement letter/ memo

3. Poster

4. Newsletter

5. Training meetings

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Enrollment

1. Enrollment meetings

2. Video presentation

3. Personal Information Kit

4. Enrollment Form

5. Dependent and beneficiary enrollment form

6. Q & A Sessions

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Flexible Benefit Administration System

1. Excel-based

2. Software

3. Linked to Payroll/ HRIS

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FUNCTION OF THESYSTEM

1. Carry election information

a. Option

b. Price

c. Dependent/ Beneficiary

2. Carry credits

3. Perform Calculations

4. Update other systems

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STATUS CHANGES

1. Follow plan rules

2. Re-calculate

3. Re-elect

4. Update other systems

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1. Track coverage

2. Pay benefits

3. Monitor cost

4. Periodically assess employee satisfaction

5. Monitor performance of providers

6. Organization Structure

a. In house

b. Outsourced

c. Combination

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Business Strategy

PeopleStrategy

Total RewardStrategy

BenefitsStrategy

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I. FEASIBILITY

1. Assessment of Current Benefits Programs

2. Assessment of currentadministrative

infrastructure

3. Plan Design

a. Model

b. Benefits for Inclusion

c. Options for each Benefit

d. Pricing of each Option

e. Valuation of benefits that wil be waived

f. Benefits Credits/ Flex Point

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I. FEASIBILITY

4. Administrative Infrastructure

a. Providers

b. Administration System

c. Organization Structure

5. Benefit Cost Analysis

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II. DESIGN&DEVELOPMENT

1. Putting details into the plan design

2. Negotiations with the Providers

III. IMPLEMENTATION

1. Enrol ment

a. Communication and Training

b. Preparation and Send out of Enrollment Formsc. Collection/ Consolidation of Accomplished

EnrollmentForms

d. Update of Systems

1. Ongoing Administration

2. Benefits Delivery ww

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Landline : 8740-6584

Mobile Phone : 0917-5772949 (Globe)

: 0918-9903555 (Smart)

Email Address : [email protected]

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