Benefits Solutions. Seeing solutions is in our nature

Transcription

1 Benefits Solutions Seeing solutions is in our nature

2 Benefits Solutions

3 Benefits Solutions combines and integrates consultancy, broking and technology to bring you engaging, cost-effective benefits solutions. Our integrated services: Defined contribution pensions Health and risk benefits Online benefits and flex Communications Our services are underpinned by our leading-edge technology platform (TBS), excellence in broking and the Aon Client Promise. 1

4 Seeing solutions is in our nature The Benefits Solutions team at Aon Hewitt is dedicated to delivering distinctive value through innovative solutions that help our clients shape their futures. We want to help you manage your benefits obtaining best value from your benefit spend while appropriately rewarding and retaining your employees. 2

5 As one of the global leaders in the UK market in the design, implementation and support of modern employee benefits programmes, we use our size and standing to deliver the best value for our clients. We offer you unparalleled access to specialist resources to deliver best in class benefits solutions to all our clients and their employees, regardless of size, location or industry. A promise to recognise what you need today, the foresight to understand your opportunities for tomorrow, and the commitment to ensure you are ready. Our integrated services put us in a unique position to enable you whether you are a small organisation or a FTSE 100 corporation with a global footprint to optimise your investment in benefits in a way that s right for you. 3

6 Defined contribution pensions Pensions have seen major changes over recent years, driven by employer and employee demand, demographics and legislation. Employers are operating in an increasingly competitive landscape to attract and retain the best talent, while an ageing workforce and more mobile working population are resulting in a significant re-evaluation of retirement provision by employers, individuals and the Government. In this environment it is vital for employers to run efficient, attractive, cost-effective pension plans. Whether you have an established defined contribution (DC) plan and need to optimise its ongoing management; have inherited legacy arrangements from an acquisition; or are considering setting up a new plan, we can help. Our teams of consultants are experts in navigating the many legal, regulatory, financial and social complexities of designing, implementing and administering pension plans for clients across all business sectors. Aon Hewitt offered us the latest ideas and thinking, backed by their considerable resources and reach. I can therefore be confident that I have a cost-effective, robust solution that meets the financial requirements of my business, as well as the retirement needs of my employees. Services DC design and plan implementation The success of your plan begins with its efficient implementation. We have a thorough grasp of project managing the implementation of a DC plan to ensure smooth, timely, cost-effective installations. Advising on the most appropriate DC pension vehicle for your employees, including group personal pensions, stakeholder, trust-based occupational plans (both bundled and unbundled), additional voluntary contribution arrangements, hybrid plans and group self-invested personal pensions Benchmarking your plan against your peer group or a wider universe to ensure it remains competitive Recommending the appropriate joining method to optimise member take-up Advising on the most appropriate investment options for your plan members Specialist advice on executive benefits Setting up and running salary sacrifice arrangements that are simple to administer and save money Communications We design and deliver a range of fresh, innovative communications materials to motivate your employees to take ownership of their pensions, not just at joining but throughout their plan membership, enabling them to make decisions about appropriate contribution levels, investment options and choices at retirement. 4

7 Case study Introducing a new DC scheme to replace legacy plans results in a take-up of more than 90% Governance To maintain your plan s efficiency and efficacy and help future-proof its design, it is essential to manage the risks inherent in running a pension plan, interpreting guidance from the Pensions Regulator for your type of plan, its membership and your HR strategy. We have extensive experience of establishing governance/pension committees and monitoring all the parties involved, including providers, administrators and investment managers, as well as reviewing the communications on a regular basis. Online retirement service Our retirement service, that includes our annuity broking service, is easily accessible online to members nearing retirement as a standalone package, and represents excellent value for money. You can be assured that your members are receiving the best possible attention when making one of the most important financial decisions of their lives. The challenge When a company supplying equipment and services to the world s most advanced industries became a newly independent, privatelyowned business, it became necessary to make changes to its pension and employee benefits programmes, affecting 1,400 staff in nine sites across the UK. In particular, more than half of the employees were currently members of the existing defined benefit scheme which was, along with the existing defined contribution schemes, to be replaced by a new DC scheme. The solution Working to a tight schedule, the Aon Hewitt team had two months to design the benefit structure in consultation with representatives from the company, its private equity house owners and the unions. The team explored a range of fully-costed benefit designs, and one month later launched the new DC scheme, as well as a group life insurance, group income protection and health cash plan, to the employees. Aon Hewitt ran more than 60 presentations across the country to ensure that staff fully understood the changes. As some employees were moving from a defined benefit to a defined contribution scheme, it was important to show them that they would still have a very competitive benefits package. Employees now have access to their pensions online and can monitor and switch funds themselves. Results Take-up rates surpassed expectations, with 90% of employees joining the scheme. More than half the employees joined at or above the higher contribution level, which demonstrated that the comprehensive communications strategy ensured employees understood the scheme s benefits and were making informed choices. 5

8 Health and risk benefits The cost of providing health-related benefits continues to rise, driving employers to seek innovative and cost-efficient solutions. Improving employee health and analysing the root causes of increased healthcare spend are critical in managing cost and risk. As the burden of employee welfare continues to shift from public to private sector, employers must develop benefits solutions to help them deal with emerging social and legislative change. Our approach is cutting-edge: rather than looking at any single element of your health-related policies, we audit and analyse claims data from your entire suite of benefits. From this we create meaningful management information: A comprehensive profile of the business which can be used to negotiate with insurance underwriters A benchmark to measure the success of any health initiative or wellness strategy A rich source of information to help: Inform the effective targeting of wellbeing Identify areas of policy design which could produce cost savings without removing a valued element of your benefits programme For you as a client, this means that we will examine the drivers of your benefit costs, instead of automatically avoiding premium increases by trimming benefits. Managing employee risk has become increasingly important to us as an employer Aon Hewitt s extensive market knowledge ensured that we were provided with a choice of practical solutions. Services Insurances and products Aon Hewitt is one of the largest UK and global leaders in employee benefits consultancy. Our UK Health and Risk practice places c. 400 million of insured benefits into the market, which ensures our clients receive the keenest premiums, with high levels of service guaranteed. To maintain a consistent approach across all of our clients we have developed a structured approach using our broking and consulting model. Our model keeps your arrangements under constant review, and ensures that all costs are contained. We will make sure that you are also aware of market developments, innovations and legislative changes. We broker and consult on a wide range of products, including group income protection, life assurance, private medical, critical illness and EAPs, as well as making sure that we dovetail these policies with your broader health management policies. Healthcare management We recognise that some solutions will require us to partner with leading companies in areas such as OH, health surveillance, health screenings and absence management. Accordingly, we conduct regular structured reviews of the service levels delivered by providers as an integral part of the placement process. 6

9 Case study Reducing absence by understanding how benefits and processes could be improved The challenge A large financial institution acquired another large UK-based company and asked Aon Hewitt to review their healthcare arrangements, advise on the amalgamation of both schemes and broker the new arrangement. The solution Innovation in benefit design The schemes had differing benefit designs and scheme eligibility. Aon Hewitt provided consultancy advice supported by benchmarking, to ensure the design was fit for purpose and supported the client s corporate healthcare strategy. Effective broking Once the benefit design was agreed, a comprehensive broking exercise ensured that the best provider was selected, on the most suitable funding basis, and the premium remained competitive. The increased membership also led to significant pricing advantage. Occupational health consulting We offer independent, unbiased advice on the most effective provision of internal and/ or external occupational health services. Our approach examines the benefits of different delivery methods and measures the business impact of occupational health services, delivering robust employee wellness products that improve productivity, increase employee satisfaction and drive positive healthcare trends. Claims management Our proactive management of long-term absence cases (GIP) means improved efficiency, reduced premium costs and avoidance of costly errors, as well as ensuring that employers management processes meet the requirements of upcoming legislation. Leverage additional benefits Aon Hewitt s experience has shown that reviewing the market enables clients to secure competitive costs, but also secure enhanced benefits, further managing costs and simplifying processes. Aon s market presence also enables us to leverage beneficial, non-standard features on insurance policies. Results A two-tiered benefit structure ensured that all eligible members had access to suitable healthcare provision Eligibility was reviewed, giving more employees access to the healthcare scheme: membership increased by 64% The combined scheme was insured via the group s captive Stop loss insurance was introduced to help manage high claims exposure Pensioner benefits were maintained Premium savings were achieved against each company s existing P11D rate Year one profit was achieved, against the claims fund (which benefited the company due to the captive) 7

10 Online benefits and flex A modern benefits programme has to work hard to meet both employer and employee needs. Employers want to provide employees with an attractive package that suits their particular circumstances and lifestyle, while controlling their benefits spend and ensuring administration efficiency. We offer a fully integrated range of services to help clients implement, communicate and manage their benefit programmes. We have a market-leading ability to provide full services, including benefit reviews, benefit procurement, plan design, technology, communications, employee helplines and administration regardless of whether you have a traditional or flexible benefits plan. We were amazed at how straightforward the implementation of flex has been and have been pleasantly surprised that it can actually deliver a lower benefit spend as well. In addition, the total reward statements have really enhanced our employees perception of the value of their benefits package. Services Benefits administration Reduce the time your HR team spends on benefits and improve employee satisfaction through our leading-edge online benefits administration system for both fixed and flexible benefits. Our administration services include employee helplines, management reporting, data reconciliation and employee self-service options. In addition, the online system provides an excellent communication tool, helping employees to understand, appreciate and engage with their benefits. Online total reward statements Online total reward statements enhance productivity and workforce satisfaction through improved employee appreciation of total rewards, as well as enabling employees to track their retirement savings, and can provide a central hub for reward-related information. Our online total reward statements are an extremely cost-effective communication and administration tool. Voluntary benefits By providing voluntary benefits, paid for by staff directly out of taxed income, employers are able to offer a wide range of perks at a relatively low cost, while delivering choice for employees. Voluntary benefits can be communicated online or via paper. 8

11 Case study Well-designed flex plan gets universal employee take-up The challenge When a food manufacturing organisation conducted their annual employee attitude survey, the findings showed that their benefits package was perceived by the workforce to be inferior to those offered by other employers in the industry. To find out whether this was the case, Aon Hewitt was appointed to benchmark their benefits package against their competitors. The solution Aon Hewitt recommended that the company explored flexible benefits as a way to deliver greater choice to employees, focusing on benefits that reinforced the client s strong corporate culture of healthy living and wellbeing. Flexible benefits Flex has the ability to: Demonstrate the financial value attached to benefits Control and reduce benefit expenditure Offer a competitive employee proposition Bring efficiencies through the introduction of new web-based administration technology As a result, flex is becoming increasingly popular as a means of delivering employee benefits. Our services include: Incisive employee research Creative plan design Best-value benefit procurement Leading-edge technology Effective communication campaigns A reliable range of administration services A comprehensive feasibility study followed, producing a clear picture of the proposed flexible benefits programme. To tie in with the corporate culture, wellbeing options were core to the package: private medical and dental insurance, free health screenings, discounted gym membership and bicycles were all included. Other benefits offered included options to buy/sell holiday and the introduction of pensions salary sacrifice. The communication campaign was very comprehensive. As well as educating employees about the new benefits on offer and how to access them on the online flex system, Aon Hewitt also had to ensure that the employees perception of having a poor benefits package was changed. The inclusion of an online total reward statement linked to the flex modeller really helped employees see the whole picture. Results As a result of the careful design, thorough communication campaign and client buy-in, the flexible benefits plan has seen universal employee take-up, with 100% of employees logging onto the system and 60% making some change to their benefits. The results of the annual employee attitude survey also showed an increased appreciation of the benefits on offer. 9

12 Communications People are bombarded from all sides with sophisticated marketing information competing for their attention. Clear, well-targeted communications can help to cut through the information overload and engage employees interest in, and appreciation of, their benefits. Effective communication involves knowing not only what you want to say, but who you need to say it to and what you want them to do as a result. We establish the key messages clients want to get across, and also how they want their employees to feel and what kind of action they want them to take. We then deliver creative, cost-effective solutions to achieve the desired outcomes. We have a continuing need to communicate complex messages about DC pension investing to our membership. Aon Hewitt listens carefully to our requirements and proposes creative, no-nonsense solutions that are developed into meaningful communications which prompt members to take effective action, as well as helping to increase engagement. Aubrey Harrison, Chairman of the Trustees, AT&T Pension Scheme Services Consultancy and strategy Our consultants will evaluate your communication wants and needs in the light of the specific issues and challenges that affect your business and your workforce. We work with you to understand your audiences and define a strategy that will achieve the results you want. Writing Our writers have years of experience in communicating complex technical issues in simple terms. We aim to get your messages across as clearly as possible, using appropriate language for your target audiences. Design Design plays an important part in engaging interest and promoting understanding. Our design team can work within your existing corporate design guidelines to produce clear, eye-catching materials which also reinforce your brand and values. 10

13 Case study Thinking outside the box generates savings buzz The challenge A multinational bank and financial services company was launching a new savings portal for UK employees. Designed to enable people to manage their savings in the way that suited them best, it offered a range of short- and medium-term savings vehicles alongside a core DC pension plan. The solution To make the communications as eye-catching as possible and spark interest among employees, we developed a brand for the savings portal in line with the bank s corporate branding, using the name SC-squared (SC 2 ) and the strapline Thinking inside the box. The campaign began with a desktop giveaway: a block of sticky notes displaying key messages and dates around the edge of the block. The aim was to support the bank s values, while providing something with practical everyday use and presence. Delivery We have partnerships with a range of external organisations, enabling us to supply print and distribution, web design and hosting, translation and video services. Typical deliverables include newsletters, booklets, benefit statements, DVDs, online modellers, websites, branded portals to administrators websites, surveys, ballots and voting papers. We are continuing to develop our use of social media, including sites such as Linkedin, to increase the communication channels available for targeting audiences. A range of online and paper communications followed, using a clear, concise plain English style. These included a guide to using the SC 2 portal designed as a fold-up card box, coffee cup sleeves, messages and promotional spots on the bank s internal TV screens. The outcome The communications generated a considerable buzz around the bank and a high percentage of eligible employees opted to take up benefits through SC 2. 11

14 The Benefits Solution TBS TBS is our online benefits platform, created and developed in-house, giving us the control to ensure it fully meets our clients needs. It can create consistent, engaging and effective communication to minimise costs and maximise your return on investment. What can TBS do for you? Deliver greater benefits visibility, governance and control Ensure benefits remain relevant and competitive Secure the most competitive and commercial terms Deliver complex employee communications Enhance benefits perception, appreciation and understanding I have no doubt the level of take-up would not have been so high without Aon Hewitt s technical expertise and the quality of the material. We have received excellent service and the results exceeded our expectation. Sally-Anne Borrill, Head of Reward at T-Systems 12

15 One platform offering you access to four key features: 1. Employee portal An engaging and intuitive employee benefits portal, enabling you to communicate and administer benefits and total reward information 2. Client portal A sophisticated employee UK and global benefits inventory tool incorporating real-time reporting with personalised dashboards, user access protocols and reporting functionality 3. Benchmarking Access to market-leading benchmarking information to help design and maintain appropriate and competitive employee benefits 4. e-broking A revolutionary way to ensure a consistent, transparent and competitive market review process when broking benefits. Our online process removes uncertainty and subjectivity to drive best value when placing benefits and allows us to obtain preferential rates from the market with improved service levels and ongoing provider monitoring 13

16 Excellence in broking We are leading the way when it comes to improving the benefits broking process in the UK, combining local consultancy knowledge with our Broking Centre enterprise. Our broking solution uses our TBS technology to deliver innovative client solutions, adding value to all clients across all sectors and sizes, and provide up-to-date fact-based analytics. Adding value at every step Understanding specific needs Consultant listens to your needs and works with the Broking Centre to deliver outcomes based upon your specific requirements Intellectual capital Unsurpassed industry and local regulatory knowledge, benchmarking capability and market insights Structured portfolio solutions Expert teams use our intellectual capital to create solutions and leverage market relationships to deliver on client needs Exclusive Aon terms, providing the best policy terms and pricing Determine client requirements Submission of request for terms Aon s Client Promise Ask nine key questions to assist in understanding your complete benefit needs and support our commitment to delivering distinctive client value Bespoke broking Access to decision makers in all of the benefits providers on our panel 14

17 Your local Aon contact A broad spectrum of solutions via your usual point of access. The Health & Benefits Broking Centre A concentration of broking professionals, placing roughly 350 million premium on our clients behalf. By utilising technology (TBS), our broking model and placement process is leading the market in terms of effectiveness. C o n fi d e n c e Selecting the right terms and conditions for your business goals Operational efficiency Efficient delivery of service through an optimised operational model and online broking capability Analyse quoted terms and negotiate Recommend and place Leverage Negotiate best-in-class pricing and terms on each placement Benchmarking Each placement tested to ensure the best terms are secured at the best price Certainty Policies placed on time and in line with requirements 15

18 The Aon Client Promise All of our services are backed up by the Aon Client Promise. Designed for clients by clients, the Aon Client Promise is Aon s globally uniform approach to ensure each Aon client receives personalised service based on their individual business needs. The Client Promise creates the industry s most transparent view of the work we perform, and holds our team accountable for delivering value to the areas of your business where it can have the most impact. The feedback we receive from clients via the Client Promise Assessment and our discussions with colleagues in building Client Promise Plans create opportunities to think outside of standard solutions and focus on the wider scope of Aon s resources and tools. TBS enables us to help clients achieve their strategic goals around growing their business, driving profit and supporting sustainability. 16

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20 Aon Hewitt Limited 10 Devonshire Square London EC2M 4YP tel: Published by Aon Hewitt Limited. Registered office 8 Devonshire Square, London EC2M 4PL. Copyright Aon Hewitt Limited All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any way or by any means, including photocopying or recording, without the written permission of the copyright holder, application for which should be addressed to the copyright holder. Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority.