Prepare a budget for your proposal benefit plan (flex) including the supporting reasons for being either under or over the competitive market average budget (as a % of total compensation) for these types of plans ( use spreadsheet provided to aid in preparing budget).

Prepare a budget for your proposal benefit plan including the supporting reasons for being under or over the competitive market average budget (as a % of total compensation) for these types of plans use spreadsheet provided to aid in preparing budget.

The Great Canadian Company located in Ancaster (GCC) is a boutique retail company located across Canada The company was started by the owner in 1990 It now has annual revenues of $55,000,000 and operates in 15 locations across Canada Currently private, the company expects to go public in 2022, when sales are expected to hit $65 million. The business requires new capital expenditures to continue its growth and the public stock offering will create the cash required for growth. The pace of the company's business is rapid. New products and services are the only way to stay ahead of the competition Employment has increased from 10 in 1990 to 450 in 2019, current employee demographics are: 20s 30s 50plus TOTAL Full-time (ET) 44 44 16 25 129 131 133 Part-time (50% of FT) 49 8 321 % single 73% 94% 85% 76% % mamed to FT 27% 6% 15% 24% 40s Salaries based on a 7 hour day Average hourly pay $16.95 $22 15 $4550 $65 50 While all employees are currently non-union, there are some reliable sources indicating staff are looking to unionize in the Vancouver and Montreal locations. The owner is concerned that the company is growing so fast that the collegial atmosphere is disappearing. Turnover has been just around the industry average (35%) and lately, turnover among new hires is increasing more than the overall average The owner senses the need for a professionally designed benefits and retirement savings plan. Funds are available but not unlimited. The expectation of going public puts pressure on the firm to look responsible and conservative to potential investors. However, the owner wants to maintain the corporate culture that made the company successful No formal indirect compensation plan or retirement savings plan currently exists. Instead, employees are hired based on market rates and the benefits package has been based on government sponsored benefits only YOUR DELIVERABLES: The owner of GCC has hired you as the benefits advisor to design a benefits and retirement savings plan with supporting communications to support the company to achieve its many objectives 3) Benefit plan design As there is no formal indirect compensation plan or retirement savings plan currently followed by the company, instead the benefits package has been based on government sponsored benefits only which is mostly fixed, the suggested benefit plan design would be a flexible one and that would be applicable to all the employees at all levels. Having specific plans for different levels would be tough as the workforce is huge. Flex plans allow the employer to set a monthly expenditure limit, allowing the company to know exactly how much they will be paying on their plan each year. This control aids in year-end planning and becomes predictable and expected expense for employers. Moreover, these benefits are tax deductibles. As the company is going public soon, there will be a lot of cash that the company will have to deal with. In this case, knowing the exact amount of the cost of benefits would make allocation of funds easier. Offering flex plans may be one method for the company to differentiate themselves from the competition and attract good employees. Potential employees look for flexible benefits since it allows them to have more control over the challenges that they are dealing with. Employee turnover is a huge expense that the employers wish to minimize, and employees are far less likely to leave a company if their demands are addressed in a practical manner. Turnover has been near the industry average (35%), while the newly recruited employees' turnover has recently been higher than the general rate for the GCC. This is because the company's dynamic growth has led to fading of the cooperative atmosphere due to lack of attention to the workforce. Depending on the company, these benefits shall include health insurance, dental insurance, vision care, life insurance, legal insurance, paid vacation leave, personal leave, sick leave, child-care, fitness, retirement benefits and planning services, college debt relief, pet insurance, and other optional benefits offered to employees and their families. The plan should be funded by the employer contributing a set amount, usually a percentage of employee's compensation, to a tax-deferred account on a regular basis. Following retirement, the plan should allow making monthly payments to the employee for the rest of their life. The eligibility of the plans should at least be 1 year and should be renewed after that. The accumulated amount of the benefits should be redeemed if not used. It is advantageous to have a diverse staff in terms of age, experience, and personality. The company must accommodate a wide range of needs as per the diversity of the workforce. For example, majority of the employees are in their 20s and 30s. Such a workforce demands more flexibility in providing paid vacations, fitness facilities, maternal leaves, child-care etc. Meeting employee needs will benefit the company by retaining employees. The company will surely benefit from flex plans since they are powerful tools that help employees and employers both. The Great Canadian Company located in Ancaster (GCC) is a boutique retail company located across Canada The company was started by the owner in 1990 It now has annual revenues of $55,000,000 and operates in 15 locations across Canada Currently private, the company expects to go public in 2022, when sales are expected to hit $65 million. The business requires new capital expenditures to continue its growth and the public stock offering will create the cash required for growth. The pace of the company's business is rapid. New products and services are the only way to stay ahead of the competition Employment has increased from 10 in 1990 to 450 in 2019, current employee demographics are: 20s 30s 50plus TOTAL Full-time (ET) 44 44 16 25 129 131 133 Part-time (50% of FT) 49 8 321 % single 73% 94% 85% 76% % mamed to FT 27% 6% 15% 24% 40s Salaries based on a 7 hour day Average hourly pay $16.95 $22 15 $4550 $65 50 While all employees are currently non-union, there are some reliable sources indicating staff are looking to unionize in the Vancouver and Montreal locations. The owner is concerned that the company is growing so fast that the collegial atmosphere is disappearing. Turnover has been just around the industry average (35%) and lately, turnover among new hires is increasing more than the overall average The owner senses the need for a professionally designed benefits and retirement savings plan. Funds are available but not unlimited. The expectation of going public puts pressure on the firm to look responsible and conservative to potential investors. However, the owner wants to maintain the corporate culture that made the company successful No formal indirect compensation plan or retirement savings plan currently exists. Instead, employees are hired based on market rates and the benefits package has been based on government sponsored benefits only YOUR DELIVERABLES: The owner of GCC has hired you as the benefits advisor to design a benefits and retirement savings plan with supporting communications to support the company to achieve its many objectives 3) Benefit plan design As there is no formal indirect compensation plan or retirement savings plan currently followed by the company, instead the benefits package has been based on government sponsored benefits only which is mostly fixed, the suggested benefit plan design would be a flexible one and that would be applicable to all the employees at all levels. Having specific plans for different levels would be tough as the workforce is huge. Flex plans allow the employer to set a monthly expenditure limit, allowing the company to know exactly how much they will be paying on their plan each year. This control aids in year-end planning and becomes predictable and expected expense for employers. Moreover, these benefits are tax deductibles. As the company is going public soon, there will be a lot of cash that the company will have to deal with. In this case, knowing the exact amount of the cost of benefits would make allocation of funds easier. Offering flex plans may be one method for the company to differentiate themselves from the competition and attract good employees. Potential employees look for flexible benefits since it allows them to have more control over the challenges that they are dealing with. Employee turnover is a huge expense that the employers wish to minimize, and employees are far less likely to leave a company if their demands are addressed in a practical manner. Turnover has been near the industry average (35%), while the newly recruited employees' turnover has recently been higher than the general rate for the GCC. This is because the company's dynamic growth has led to fading of the cooperative atmosphere due to lack of attention to the workforce. Depending on the company, these benefits shall include health insurance, dental insurance, vision care, life insurance, legal insurance, paid vacation leave, personal leave, sick leave, child-care, fitness, retirement benefits and planning services, college debt relief, pet insurance, and other optional benefits offered to employees and their families. The plan should be funded by the employer contributing a set amount, usually a percentage of employee's compensation, to a tax-deferred account on a regular basis. Following retirement, the plan should allow making monthly payments to the employee for the rest of their life. The eligibility of the plans should at least be 1 year and should be renewed after that. The accumulated amount of the benefits should be redeemed if not used. It is advantageous to have a diverse staff in terms of age, experience, and personality. The company must accommodate a wide range of needs as per the diversity of the workforce. For example, majority of the employees are in their 20s and 30s. Such a workforce demands more flexibility in providing paid vacations, fitness facilities, maternal leaves, child-care etc. Meeting employee needs will benefit the company by retaining employees. The company will surely benefit from flex plans since they are powerful tools that help employees and employers both