Flexible Benefits 'Starting from scratch Jim Harwood International Pension

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Flexible Benefits.Starting from
scratchJim HarwoodInternational Pension
Benefits Manager
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Who are Benfield?

• The worlds leading independent reinsurance and
  risk intermediary.
• FTSE 250 company.
• Consistently in the Sunday Times 100 best
  companies to work for.
• Matthew Harding was our Chairman.

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In the beginning

• A high quality, eclectic mix of benefits
• 7x Life Cover
• Head Shoulder massage
• 50 subsidised gym membership
• Partner Critical Illness

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In the beginning

• Key issues
• Lots of good intentions
• No coherent strategy
• No cost management mechanism
• Low perceived value

Blurred Vision
Blurred Vision
Blurred Vision
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In the beginning

• First steps
• Audit of existing benefits
• Survey team members

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The Survey

• Ask your team members what they want
• Keep it simple
• Online
• Quick to complete
• Anonymous
• Basic demographic data
• Allow for comments

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Benefit Reward survey
Ranking the benefits Younger Team Members vs
Older Team Members
It was quite clear that one size doesnt fit all
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Approach to benefits

• Old benefits approach
• High quality
• One size fits all
• Not always available for everyone
• New benefits approach
• High quality
• Flexibility
• Individual choice
• Meet changing needs
• Fair

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Key principles

• Key principles behind Lifestyle
• Flexibility, choice accessibility Enabling
  Team Members to adjust the structure of their
  Total Reward so that it better suits their
  specific needs and lifestyle requirements, now
  and over time. To ensure all benefits are
  available and accessible to all Team Members.
• Competitive within local environment Ensuring
  the benefit proposition is a key recruitment and
  retention tool.
• Appropriate affordable Enabling Benfield to
  better manage and target the benefit spend to
  ensure the best return from the investment. To
  ensure the cost of providing a specific benefit
  is commensurate with the number of Team Members
  that are likely to take up that benefit.

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Humanistic objectives

• Cost neutral
• No one is worse off
• Fairer benefits package
• Higher perceived value
• Cost redistribution

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Cost redistribution
Remove Gym Membership Introduce Lifestyle
Allowance Benefits on a flex basis The
opportunity to buy 3 days holiday Net
result Better than cost neutral
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Separate identity
LIFESTYLE .. benefits for you your life
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Teaser campaign
Compaq, Toshiba, Apple, Sony its your choice
LIFESTYLE benefits for you your life Coming
soon 3 November 2005
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Teaser campaign
3x, 4x, 5x, 6x, 7x, 8x, 9x or 10x its your
choice
LIFESTYLE benefits for you your life Coming
soon 3 November 2005
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Teaser campaign
27, 28, 29 or 30 its your choice
LIFESTYLE benefits for you your life Coming
soon 3 November 2005
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The Launch

• Desk drop of the brochure
• Email the key details
• Benefits Day
• Free food!!!
• Meet the providers
• Experience the online selection system
• Small presentations

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Key lessons

• Know what you currently offer.

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Key lessons

• Know what you currently offer.
• Ask what your employees want and act on their
  responses.

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Key lessons

• Know what you currently offer.
• Ask what your employees want and act on their
  responses.
• Try to ensure no one is worse off.

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Key lessons

• Know what you currently offer.
• Ask what your employees want and act on their
  responses.
• Try to ensure no one is worse off.
• Aim for cost neutrality not cost reduction.

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Key lessons

• Know what you currently offer.
• Ask what your employees want and act on their
  responses.
• Try to ensure no one is worse off.
• Aim for cost neutrality not cost reduction.
• Bold and accurate communications.

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Key lessons

• Know what you currently offer.
• Ask what your employees want and act on their
  responses.
• Try to ensure no one is worse off.
• Aim for cost neutrality not cost reduction.
• Bold and accurate communications.
• Keep the concept alive.