Extended Health and Dental Plan Cost Increases Up Slightly
June 2009
After experiencing relatively consistent annual increases in the cost of their extended health benefits and dental plans, employers will see a slight increase in these costs for 2009. Over the past five years, the average annual increase in the cost of extended health benefits has reached a high of 14.2% compared to the lowest annual increase of 13.5%. Similarly, the average annual increase in the utilization of dental plans remained at about the same level for previous years. However, for 2009 the average increase for dental plan utilization is higher.
To find out more, read WCBC's annual survey of increases in extended health and dental plan costs.
Expected Compensation Changes Due to Current Economic Concerns
November 2008
WCBC conducted an e-pulse online survey of 340 Canadian employers in October, 2008 to ascertain whether 2009 compensation planning has been affected by recent economic concerns.
Highlights of Findings
- Two-thirds (63%) of employers have not changed their planned increases to base salaries and 71% have not changed their planned salary range increases. Private sector and large employers are most likely to have changed their plans.
- Although it varies by industry and organization level, the average expected increase in base salaries is approximately 1% less than was anticipated by employers in August/September of 2008.
- With regard to the “non-salary” components of compensation, employers’ focus will be on their short-term, medium-term and long-term incentive plans.
Full results of current e-pulse surveys are available to participants only. To be included in future e-pulse surveys, please contact us.
New Disclosure Rules for Executive Compensation
August 2008
Canadian companies are being required to disclose much more information, and be more specific, about their executive compensation.
To find out more, and read about WCBC's opinion, read Business in Vancouver's recent article on this topic.
Extended Health and Dental Plan Costs
May 2008
Employers have recently experienced relatively consistent annual increases in the cost of their extended health benefits and dental plans. Over the past five years, the average annual increase in the cost of extended health benefits has reached a high of 14.5% compared to the lowest annual increase of 13.5%. Similarly, the average annual increase in the utilization of dental plans has remained at about the same level for the past five years.
To find out more, read WCBC's annual survey of increases in extended health and dental plan costs.
Ending Mandatory Retirement
December 2007
Several Canadian provinces have recently passed legislation to end mandatory retirement (BC's legislation comes into effect on January 1, 2008). As a result of this legislation, employers can no longer require employees to retire at a specific age.
In order to assess how employers are dealing with this important issue, Western Compensation & Benefits Consultants ("WCBC") conducted an e-pulse online survey in October/November 2007.
Highlights of Findings
- Nearly one-half of the employers had a mandatory retirement policy and therefore are affected by the legislation.
- Of those organizations which previously required employees to retire, only 55% have fully prepared to respond to the legislation.
- The top three initiatives taken by employers to prepare were reviewing/identifying any changes required in the group benefit plans, reviewing retirement policies and practices, and analyzing the organization�s employee demographics.
- Although the most common changes introduced by employers relate to group benefit and retirement plans, many employers have or will be introducing changes in performance management, collective agreements and employment contracts.
- Nearly four out of ten (37%) employers feel that elimination of mandatory retirement will assist their organizations with addressing skills and labour shortages.
- The majority of employers will continue a variety of benefit coverage for employees 65 and over, while some employers are also implementing modified work arrangements to retain older employees.
Read the article in its entirety.
Capital Accumulation Plans
June 2007
Capital accumulation plans (CAPs) are playing an increasingly prominent role as a part of many organizations' benefits packages. Western Compensation & Benefits Consultants ("WCBC") conducted an e-pulse online survey on CAPs in May 2007.
Highlights of Findings
- For 83% of organizations, the CAP is the primary retirement savings plan (90% for employers with plan assets of less than $5 million). A group RRSP is the most prevalent type of plan for 79% of these employers.
- Ninety percent of employers give their employees a choice of investment options. However, only 50% of employers believe that plan members will make the appropriate investment decisions.
- The median plan offers 20 investment options, but there is a wide variation between plans from less than five to more than 50 options offered.
- Almost one-third of plans do not have a default investment option (40% for plans with less than $5 million of assets).
- Forty-four percent of employers either do not or do not know if they have a statement of investment policy and 50% of employers do not review the statement of investment policy annually.
- Almost 25% of organizations do not review the investment performance of the investment options.
- Large plans (assets of $5 million or more) have significantly lower investment management fees than smaller plans (assets of less than $5 million).
- Only 52% of organizations believe that fees and expenses borne by their plan members are clearly disclosed.
- Fifty-two percent of organizations without a CAP at present plan to implement a CAP in the next few years.
Read the article in its entirety.
Attraction & Retention Survey
February 2007
Many Canadian employers are experiencing difficulty in attracting and retaining employees. In order to assess the degree of difficulty being experienced and to identify the initiatives being taken by employers Western Compensation & Benefits Consultants ("WCBC") conducted an e-pulse online survey in January 2007.
Highlights of Findings
- During 2006, 87% of employers experienced challenges in attracting employees, and 66% had employee retention challenges. Half of the employers had an increase in employee turnover in 2006.
- The degree of difficulty in attracting and retaining employees varies considerably by functional area and management level.
- Alberta and BC organizations experienced more challenge than other employers.
- The most effective attraction strategy was offering competitive base salaries, and the top reason for employee turnover was dissatisfaction with cash compensation.
- Although 91% of employers are taking initiatives to ensure compensation and benefits programs are competitive, about two-thirds of employers are (or will be) coaching/developing managers and encouraging/enabling a work/life balance.
- Two-thirds of employers expect to have challenges in attracting employees in the next few years, while one-half of employers expect retention challenges. A majority of employers expect to meet these challenges in 2007.