Chapter 10: LO7: Flexible Benefit Plans Advantages and Disadvantages and LO8: Administrative Problems with Employee Benefits

Claims audits

Examines claims and claim trends

Organization audit

Examines the efficiency and effectiveness of handling employee benefits

Retention

Flexible benefit plans are very effective tools in attracting and retaining highly skilled staff

Cafeteria benefit programs

§ Allow employees to select benefits and services that match their individual needs § Employees shop for specific benefits Main advantage is employee contribution

Enables employers to

§ Identify opportunities for financial and human resource savings § Ensure that insurers are doing a good job § Exert effective control over their benefits area § Identify who is in control of the benefits budget § Check how their employee claiming habits compare against other Canadian employers

Benefit Audit

○ Readily identifies inefficiencies