Creative Benefit Plans

It is important for employers to know that money is not the only — or most important — explanation for why employees leave companies. On average, only 12% of employees cite compensation as the reason for resigning.

Employees, however, do value benefit plans, perhaps more so today than ever before. To keep employees happy, plans are no longer limited to the traditional benefits such as health and dental. Many employers have adopted creative benefits to suit their employees and their organizational culture.

This article covers a number of benefits that you could provide to your employees, often with little or no cost to you.

(Note: some of these benefits may or may not be taxable to the employee and may or may not be deductible by the employer. See http://www.cra-arc.gc.ca/E/pub/tg/t4130/t4130-07e.pdf for Canada Revenue Agency’s Employers’ Guide of Taxable Benefits.)

Health and Medical Plans

The monthly or annual costs for employee health, medical and dental plans can vary depending on the benefits (individual or group) that you provide to your employees as well as how much the employee contributes towards them.

Private health services plans are also available where the employee is allocated an amount available to spend during the year on health and medical-related expenses. The spending limit given to each employee is determined by the employer and, hence, the amounts can be budgeted accordingly. This is similar to a pay-as-you-go plan for employers with a small administrative fee paid to the company that administers the plan for each claim made by the employees. The administration of the plan is typically handled by a third party.

Other Related Insurance

Other insurance to consider is disability, life, accidental death/dismemberment and critical illness insurance. Be aware of the possible tax implications as any claims paid out to the employee may be taxable to them if the employer has paid the premiums. Companies usually make the plan available to employees, but employees pay the premiums so that any claims paid are non-taxable.

Flex Days/Hours/Summer Hours

Providing opportunities for employees to work variable hours or days is a well-received benefit that many organizations offer.

Another option is a summer hours program where employees work more hours during the week and take Friday afternoons off.

Telecommuting

Telecommuting has become more mainstream as a benefit for employees in many companies. It is ideal for employees who can work on their own, for those who have significant family demands on their time, or for employees who have a significant commute to work. Most modern companies adhere to a culture of trust and realize that productivity can often increase when employees are given the option of working from home.

Fitness Memberships

Many companies now offer employees either discounted or fully paid memberships for fitness-related activities. This is a win-win situation for both parties since studies show that productivity is higher in healthy employees and costs to the employer decrease when employees embrace a healthy lifestyle.

Prepaid Legal

Prepaid legal is a relatively new benefit that has been gaining popularity over the last few years. It provides employees (in a group type setup) with benefits such as phone consultation with lawyers on legal matters, will and powers of attorney preparation, and tenant legal advice. This service helps employees deal with personal issues requiring legal consultation.

Another example is identity theft protection. In the event an employee has their identity stolen, this plan could save your employee(s) money and significant time, reducing the number of work hours spent trying to rectify the situation.

The relatively low monthly costs of these plans can either be paid by the employee (e.g., by payroll deduction), by the employer, or shared. However, these programs are not usually available to an individual on their own.

For more information, see http://wserver0.prepaidlegal.com/Multisite/JSP/corpgrp/grpregsel.jsp.

Paid Parking

Paid parking can be especially beneficial in areas where parking is expensive and may help offset the cost of commuting as the price of gasoline increases.

T2200

Providing an employee with a T2200 to allow them to write off mileage and/or other employment-related expenses can be beneficial to employees at tax time.

Party/Team Building Events

Team building events allow employees to get to know each other in a social setting. Many employees consider these to be a perk and appreciate the opportunity to make connections outside of the standard office environment. Some examples of these types of activities include barbecues, bowling, and company-organized volunteer days.

Treats

Having a specified day for treats — e.g., a pizza day once a month or muffins every Friday, gives employees something to look forward to.

Pension

Companies can implement a pension plan and/or RRSP matching program for their employees. Typically there are certain minimum dollar amounts before a financial institution will set up a plan.

Automobile Allowances/Transit Pass Reimbursement

These are possible options for employees who are required to travel on behalf of the organization or who need to commute a significant distance from their home base to work.

School/Education/Training Courses

Many employers pay for or reimburse employees for taking courses related to their position.

Low or No Interest Loans

Employers can give low or no interest loans to employees where appropriate; for example, to help purchase a car.

Vacation Time/Personal Time Off

Additional vacation time or personal time off can be provided as a reward to selected employees, and this doesn’t directly cost the company. It can be offered to employees, for example, who reach certain anniversaries, have worked significant overtime or completed important projects.

Another alternative is closing the office during slow periods of the year, such as between Christmas and New Year's.

TD1

Have employees fill out a TD1 form annually (see http://www.cra-arc.gc.ca/E/pbg/tf/td1/td1-08e.pdf). This will determine what kind of taxes will be withheld from each pay period.

Provide Day Care for Employees’ Children

Several larger companies offer day care to their employees. This can be a tremendous help to employees who have young children, especially if the day care is located on the employer’s premises, allowing employees to keep an eye on their children during breaks or lunch.

Sabbaticals/Leaves of Absence

Providing sabbaticals or leaves of absence to longer-term employees can serve as a reward to hard-working employees for their dedication and loyalty to the organization. An employee who returns from a sabbatical or a leave will be refreshed and have new insight about their work.

Seminars/Lunch and Learns

Some employers do seminars or “lunch and learns” for their employees on topics unrelated to their employees’ work. Examples include health and wellness, dress to success or financial planning seminars. These sessions are provided to help employees succeed, both in their work as well as outside their employment. Many financial planning advisors, for example, will offer to do a financial planning session at no cost to employees. Such sessions reinforce the notion that the company cares about its employees.

Contests/Prizes/Draws

Another low cost benefit can be a company holding a contest each week, month or quarter enabling employees to win a prize. An employee can be eligible for a draw based on points earned during the period, or by nomination, for example.

Conclusion

Ask employees (e.g., via a focus group) what benefits they want and at the same time determine how much budget you have for the introduction/implementation of any new benefit. The benefits you will want to provide will vary depending on the average age of your employees, the tenure they’ve had, your organizational culture, and your budget. Younger employees may be more interested in flex time/hours, while older employees may be interested in health benefits, so it’s important to revisit your benefits every year with your employees. This will ensure that your benefit plan is meeting the needs of your employees and will help determine if your spending is meeting your objectives.

**************************************************************

Marc Belaiche is a 1990 CA and is President of TorontoJobs.ca, an Internet recruitment business and recruiting firm. Marc has been in the recruitment industry since 1995. TorontoJobs.ca allows companies to post their positions online, search a resume database to find candidates, publishes a monthly TorontoJobs newspaper and provides full temporary and permanent recruitment services. It also allows candidates to search and apply to positions directly on-line and get career, interviewing and resume tips all at no charge. You can reach Marc at marc.belaiche@torontojobs.ca and check out TorontoJobs.ca at www.TorontoJobs.ca.

Factoring: Alternative Capital for your Business

By: Jonathan Brindley,CA
Principal
Liquid Capital


As an entrepreneur ensuring you have access to sufficient capital is a constant and ongoing struggle. Banks don’t seem to have any money to lend right now — or at least none they want to — raising equity either privately or in the markets is not a great value proposition for many companies with investors skeptical about, well, everything. Also capital costs are high and dilution and intrusion in management can be excessive.


A major bank recently commissioned a survey of 1,004 companies nationwide with annual revenue of $10 million or less that showed slightly less than a third of those surveyed said their bank provides everything they need when it comes to financing and other business services.


Yet business needs to go on. Companies still need to buy goods, meet payroll, cover seasonal adjustments and even seize market opportunities. So what are they to do?


Many small to mid-size business owners are turning to factoring, an alternative to bank lending that provides businesses with capital when needed on a flexible formula basis that is proportional to sales. The factoring “line” grows as the sales to credit worthy customers increase giving clients an opportunity to capitalize on market opportunities.


Any company or business entity that offers credit to corporate or government accounts can benefit from factoring either all their receivables or just a few select accounts.


Following are some of the most frequently asked questions about factoring showing how business owners can benefit:


Q: What is factoring?
A: Factoring is the purchase of corporate accounts receivable. It’s generally used when a company has market opportunities requiring greater capital resources then they posses to properly exploit the opportunities. Factoring gives that company access to capital through flexible and cost effective means.


Q: How does factoring work?
A: The factor purchases a business’s accounts receivable and gives them a large percentage of the total creditworthy accounts receivable up front and the remainder when they are collected. The factor handles all the credit checks, processing, reporting and collects the accounts receivable so the client is able to concentrate on growing their business.


Q: How does factoring differ from other types of financing?
A: Factoring differs from traditional bank loans because the credit decision is strictly based on receivables rather than other criteria like how long the company has been in business or balance sheet and working capital ratios and personal credit scores which are key considerations for most banks. Factoring differs from equity financing in that factors don’t take equity in the company, do not sit on the board or charge management fees. Since contracts are short term, the client could elect to stop factoring whenever they choose.


Q: Who can benefit the most from factoring?
A: Generally, any business-to-business company with good margins that has the ability to increase their sales but are held back because of a lack of capital can benefit from factoring. The industries that tend to use factors now are diverse and without factoring, they wouldn’t be able to expand.


Q: What are some common misconceptions about factoring?
A: The biggest misconception is that people believe factors are a lender of last resort, but that’s not true, factoring is designed to support growth opportunities. In addition to providing financing, the factor will do credit checking, receivables accounting and reporting, and all the collection work, thus saving the company the salary of employees hired to handle these same tasks and all the ancillary expenses. As well, most employees tasked with these duties are not trained credit or collection professionals, which exposes companies that want to offer payment terms to customers to increased risk. Trained employees are expensive and hard to find . Using a factor dramatically reduces these risks. Most clients are motivated to contact a factor for the money, but they soon realize the services and flexibility are equally as important.


Q: Do you see factoring becoming the norm if these economic conditions continue? For what reasons? A: With banks becoming more stringent and less dependable, businesses can’t get the financing they need. In Europe and the U.S. , factoring is more established and its volume has increased substantially. Given its increasing popularity in other markets, I think it’s only a matter of time before it enjoys a similar level of acceptance in Canada.




Liquid Capital is an established international network of finance professionals with over 65 independent local offices throughout North America, who specialize in providing clients with Accounts Receivable financing. For more information, visit www.liquidcapitaladvancecorp.com

A Glimpse into the Success of the 2012 Toronto Entrepreneurs Conference

The Toronto Entrepreneurs Conference has grown substantially since the inaugural event last year, more than doubling the amount of participating exhibitors, growing the speakers list, and attracting more than 1,000 attendees.

We were delighted to have Mark Breslin, founder of Yuk Yuk’s join us as keynote speaker. Mark gave us insight into the unforgiving world of stand-up comedy and how he has built a thriving career and a world class reputation as one of the most important figures in Canadian comedy. The Conference also included outstanding presentations by Kurt Rosentreter, Lisa Kember, Marc Belaiche and Peter Weinstein who spoke of their unique experiences as entrepreneurs.

The Toronto Entrepreneurs Conference was designed to provide entrepreneurs, whether budding or experienced, with the opportunity to expand their professional network, hear from experienced and successful entrepreneurs on tips and opportunities and learn what it takes to become successful and stay thriving.

A special thank you to our 2012 exhibitors!

The 2012 Toronto Entrepreneurs Conference would not have been the success it was without the participation and support of our exhibitors. Thank you! For a complete list of the 2012 exhibitors, please click here: http://torontoentrepreneursconnected.blogspot.ca/2012/06/blog-post.html

Here’s what some of our attendees are saying:

“Overall it was well organized, in fact very well organized. I have been to conferences in various countries and it didn't fail to impress me.”

“Had glowing comments from the exhibitors I spoke with, especially in the Atrium. The place looked great and traffic was always moving through the halls.”

“The event was worth driving from Montreal. I particularly liked the exhibition booths where I got valuable information. The conferences were well prepared and useful. Also, it was fun. I do not know how much work you and your team put in it but it was a success. I hope to be able to come again in May 2013.”

Interested in exhibiting for our 2013 event?  Please email info@TorontoEntrepreneurs.ca for more information! 

2012 Toronto Entrepreneurs Conference Exhibitor Overview

Vital Reasons Why Small to Midsized Businesses Should Outsource HR!

Don’t have HR Expertise or the work culture you want? Can’t find “A” players for your team and don’t want to get into HR legal issues? Need to cut costs and don’t have enough hours in a day? Try outsourcing HR….


Outsourcing is not a new trend; it has gained momentum since the economic rest of 2008. In the 90’s we used outsourcing which referred to large corporations that stationed jobs offshore. Today, outsourcing simply refers to subcontracting an internal business function to an external provider that brings with them a wealth of experience and expertise to complete a fundamental function. Most small to midsized businesses outsource functions such as payroll; accounting; and similar tasks for the reason of proficiency; expertise and costs. Entrepreneurs’ take pride in their existence; they don’t rely on others to “get the job done”; achieve their aspirations and goals with their own flair; that being said an increasing number of entrepreneurs’ are witnessing their businesses (and their bank accounts) flourish as a result of strategic outsourcing.


HR Outsourcing saves money
Let’s look at the numbers…total yearly costs (salary; bonus; benefit and pension costs; payroll, taxes, office space; laptop; software; mobile; and business expenses) for an entrepreneur to employ an HR Generalist with 2 years’ experience for a small business (50 employees or less) is between $75,000 to $85,000. To employ an HR manager with over 5 years’ experience is a staggering $120,000 annually. Still not convinced?? Most HR professionals with less than 5 years’ experience are not business savvy, they will have difficulty relating to an entrepreneur whose subservience to purpose is to nurture their business and watch it prosper.


HR consultancy firms allow small and midsized businesses to outsource their entire HR resources requirements for monthly retainers as low as $2,500 or $30,000 annually. That’s a substantial savings of over $45,000 per year, and the savings does not stop there. Through their work HR consultancy firms will search for alternate ways to reduce your costs and ensure you don’t get into legal hot water!


HR Outsourcing saves time
Imagine the time you could regain with a strategic HR Business Partner, to help nurture you business, to permit you time to spend with your family and not be inundated with vast amounts of paper work; employee performance issues; and HR legal issues just to name a few. Outsourcing your human resources requirements may be the initiative you have been searching for! In addition, you will be able to centre your time on other areas of your business.


HR Outsourcing expands your knowledge base
Outsourcing your human resources requirements will grant you access to HR experts in the field that will become an extension of your company. Through their partnerships, they will immerse themselves into your organization, objectives and culture to offer strategic consulting strategies that will uniquely align with your organization. HR consultants are dedicated to making human capital into a strategic differentiator for their clients. They are prepared to help you strengthen and grow your business. Lastly, outsourcing human resources will enable you to gain knowledge and continue to learn and gather information from industry experts.


HR Outsourcing allows you to focus on your greatest asset “Employees”
For companies to dominate and become a respected leader in their market place, they must invest in their human capital. For companies to become successful they must first start with the “Who” (employees) prior to the “What” (strategies). You must ensure you have the right talent in the correct seats within your organization. Once you have the correct talent you must ensure they are aware of how they will contribute to your company’s goals and values. Furthermore, this will permit you to merge a culture of discipline with an ethic of entrepreneurship and self-determination with a focus on results. The biggest obstacle for entrepreneurs’ is locating the right talent they can trust to ensure they are making the correct decisions for the company to prosper. Lack of trust slows your company down, makes you inefficient and costs you money and time. Outsourcing your human resources to a human capital firm that will take the time to understand your business and your HR requirements will allow to you to build a great long lasting company.


HR Outsourcing builds your employer brand
Your employer brand is critical for the image of your company. This image is built upon reputation and accessibility. Perhaps one of the prevalent benefits (and often the most overlooked) of outsourcing your human resources requirements is that it will provide your business with a professional and polished image. It will also permit you time and resources to focus on preserving your core. Lastly, outsourcing human resources will aid in managing a temporary or permanent increase or decrease, in business and will serve as a catalyst for major growth.


Want Strategic HR Expertise at an affordable rate without hiring someone? Partner with HRPreneur Inc.!
Why Use HRPreneur: HRP offers real-time HR advice and support by using HR best practices from the profession. HRP designs customized HR solutions that fit with your values and culture to build a long lasting great company. HRP offers affordable solutions to retain your top talent and increase ROI. HRP focuses on your key strategic differentiator– YOUR PEOPLE.


Contact Joey Walters Managing Director HRPreneur Inc. at 647-534-4774 or by email hrpreneur@gmail.com www.HRPreneur.ca.

Building Effective Teams By Marc Belaiche, C.A.

Teams can be an extremely effective method for accomplishing goals, motivating employees and problem-solving.


This article covers some tips on how to build effective teams for your organization.


Make sure team members are committed
A team is sure to fail if the members aren’t committed to meeting the objectives of the team. Imagine a hockey team whose players aren’t committed to winning games – the team won’t do well.


Appoint a team leader
Regardless of how strong the individual members of a team might be, it is usually best to appoint one team leader who is accountable for the team achieving its goals and staying focused. Some teams may be effective when the various members share or rotate leadership responsibilities – this will depend on the strength of the members.


Expectations should be clear
What is the objective or purpose of the team? Is there/are there a particular goal(s) to achieve? How will you know if/when those goals are met? Are there ongoing goals or just one goal for the team? Team members should be clear as to the expectations and goals of the team, if/when/how will they be achieved and what happens if/when they are achieved? Does the team continue, does it change or does it disband upon meeting objectives?


Who will team report to?
Is there someone that the team will be accountable to or report to? How often should that reporting happen and in what method?


Budget
Does the team have a dollar or resource budget to help it meet its objectives? If so, who decides the amount and how often is it reported on?


Who are team members
Who decides who will be a team member? Is it based on a certain skill or experience level or on some other criteria? You need to also decide who will create the team and who will decide if/when someone should be removed from the team.


Let team members get to know each other
Teams become more effective the more they trust one another. As such, allow for time for members to get to know one another on a personal and not just professional basis.


Introduce new members
The team leader should introduce any new member to the team, explain the reason(s) why they were added to the team and allow for the new team member to say a few words. Each team member should welcome the new member.


Encourage idea generation
Team leaders should encourage everyone to contribute. Brainstorming exercises should allow for team members to not be shy about generating ideas even if, on the surface, an idea might not be viable. Someone else might take that idea and adjust it to come up with something better. Team leaders should prompt each team member at meetings for ideas.


Acknowledge differences in team members
Each team member will bring different strengths to the table. Differences in team members’ experience, age, education, work ethic, etc. should help the team, not hinder it.


Schedule/Format of the meetings
Agree on the format and timing of the meetings early as well as the length of each meeting. There should be an agenda for each meeting and you should also decide how frequently the teams need to meet. Meeting too frequently or too infrequently can have negative effects on the team.


Team members should be competent
Each member of the team should be competent in the specific skill set that is useful for the team. They should also be experienced enough with the organization to anticipate problems with implementing ideas generated by the team.


Ensure appropriate training
The members of the team should either be already trained in their areas relevant to the group or should be trained before or during their involvement with the team.


Take minutes
Ensure that someone is appointed to take minutes and distribute to team members on a timely basis.


Create sub-groups
If there are too many members on a team or if there are too many inherent projects as part of a bigger objective, it might be better to create subgroups and assign team leaders to each of those sub-groups. Perhaps you may only need the sub-groups meeting regularly and then have the team leaders of the sub-groups meet periodically to share updates instead of having everyone meet all at one time.


Empower the team to make decisions
Give the team the power to make decisions or implement recommendations that come from the team, or make it clear what decisions need to be approved by upper management. Encourage the team to take risks as well as think outside the box to come up with ideas.


Stay focused
Ensure the team stays focused on the objectives. Regularly review what the original purpose of the team was and be flexible to change direction if necessary. The team leader and all members should be responsible for making sure the team stays focused on goals.


Use Technology
Use technology to improve the efficiency of the team. Perhaps meeting virtually such as via skype or using telephone conferencing can be more efficient than trying to get everyone to meet in person. Also, minutes and project updates can be uploaded to your organization’s shared networks so anyone can access at any time, especially if someone missed a meeting.


Reward the team
Team leaders and/or management should reward the team for meeting their objectives or upon reaching certain stages.


Conclusion
When set up and managed properly, teams can be an excellent way to generate ideas to improve organizations or come up with solutions to difficult issues. Make sure to follow the tips noted above to maximize the use of teams.




Marc Belaiche is a 1990 CA and is President of TorontoJobs.ca, an Internet recruitment business and recruiting firm located in the Greater Toronto Area in Canada. Marc has been in the recruitment industry since 1995. TorontoJobs.ca allows companies to post their positions online, search a resume database to find candidates, provides outplacement services and full temporary and permanent recruitment services. It also allows candidates to search and apply to positions directly online and get career, interviewing and resume tips all at no charge. Marc is also President of TorontoEntrepreneurs.ca, an organization geared towards business owners (see www.TorontoEntrepreneurs.ca). You can reach Marc at marc.belaiche@torontojobs.ca and check out TorontoJobs.ca at www.TorontoJobs.ca.