Canadian HR Reporter

CANADIAN HR REPORTER MAY 2019 24 FEATURES PENSIONS Outsourcing pensions to attract talent 'I don't want to be a pension administrator, and I don't want our staff doing it' By James Pierlot C halupiak & Associates has served First Nations, non- profi t organizations and small businesses in Saskatch- ewan for more than 20 years as a chartered professional accoun- tancy fi rm based in Regina. Many First Nations organiza- tions and relationships are com- plex and include governments, funding agencies, private sector partners and a mix of non-profi t and profi t-seeking entities includ- ing trusts, corporations, and lim- ited partnerships. is creates multiple account- abilities and complex reporting obligations that, in turn, require professional staff possessing the expertise to help First Nations discharge their reporting duties. With a staff of 12, Chalupiak & Associates' business and client de- mands are growing. For a profes- sional services fi rm, growth means attracting, training and retaining qualifi ed staff . Two key business challenges for the fi rm are attract- ing the right employees and pre- venting "brain drain" to other em- ployers — particularly to the public sector given the fi rm's specialized work with First Nations. "We see losing talent to the pub- lic sector as a high risk," says senior partner Kerry Avery. Attracting the right people means offering the right com- pensation mix. To do this, the partners realized they needed to off er a pension plan, so they spent a couple of years researching the options — including group reg- istered retirement savings plans (group RRSPs), defi ned contri- bution (DC) pension plans and pooled registered pension plans. But none off ered what the com- pany really wanted: A pension plan with institutional-grade pric- ing and services, customized and tax-eff ective, with enough saving room to provide good retirement income, strong creditor protec- tion and — especially — minimal administrative workload. Chalupiak could have started its own plan. But that would have meant choosing and overseeing investment managers, a record- keeper and an asset custodian, as well as taking on the regulatory and fi duciary duties of a stand- alone plan. In eff ect, the fi rm would have had to operate what amounts to a small fi nancial institution along- side its core business. " at's not what we wanted to do" says Avery. "We're lean, low-overhead and client-centred. I don't want to be a pension administrator and we don't want our staff doing it. Every minute that's not spent servicing our clients is lost time and im- pedes our business success." ey chose Blue Pier, a fully out- sourced, customizable and scalable pension solution in Toronto. "We realized that we can pro- vide good pensions to our staff without wasting 10 per cent of our fi rm's resources on administrative and compliance work. We've long understood that a solution like this is needed," says Avery. ey also found the onboarding process easy, he says. "With a few simple questions, the sign-up agreement form iden- tifi ed the design options possible under regulatory guidelines — start date, pensionable earnings, contributions, eligibility, vesting, early/normal retirement, admin- istration expenses, eligible earn- ings, asset transfers, etcetera. We explained what we wanted, Blue Pier completed the form for us and we approved it." Chalupiak can look forward to fi rst-tier outcomes with Blue Pier, not least because of its ser- vice partnerships with the likes of Buck Global, Phillips, Hager & North Investment Management and Canadian Western Trust. "We like the fact that our em- ployees' money will be managed by a large and well-respected in- stitutional asset manager with a history of strong performance, and that our plan will be adminis- tered on a secure online platform that services some of Canada's largest fi nancial institutions and pension funds," says Avery. Big impact for small employers Canada has a lot of employers like Chalupiak — small in size, big in ambition and competing fi ercely for talent. And demand for skilled workers is increasing, with 41 per cent of Canadian employers having diffi culty hiring skilled workers, ac- cording to the ManpowerGroup's 2018 Talent Shortage Survey. e talent marketplace increas- ingly favours sellers (workers), not buyers (employers). And the top 10 in-demand job categories all require some post-secondary training while being harder to fi ll. They include skilled trades, engineers, sales representatives, drivers, technicians, IT support personnel, accounting and fi- nance professionals, educated professionals (managers, lawyers, researchers) and skilled manufac- turing and production staff . In 2018, more than 30 per cent of Canada's 16.3 million workers were in workplaces with fewer than 50 employees, according to Statistics Canada. None of these enterprises are large enough to of- fer an effi cient, stand-alone work- place retirement plan like larger employers often do, particularly in the public sector. So, how can smaller employers compete for talent? Off ering high- er wages is one option, but it's of- ten not enough because workers want pensions — almost 80 per cent of Canadian workers with- out a workplace retirement plan would change jobs to have one, according to a 2016 ADP survey. And while people may think millennials don't really contem- plate the future, results from a 2016 survey by Franklin Temple- ton suggest retirement is a key concern for 70 per cent of them. A further 78 per cent said the availability of a pension plan is a major factor in deciding to accept a job, according to a 2018 Ac- centure survey of 3,000 workers, while 72 per cent said they stayed with an employer to keep pension coverage. And almost 70 per cent of workers said they would give up some pay to have better retire- ment benefi ts, according to a 2017 Willis Towers Watson survey. A good workplace pension plan helps employers to attract and retain the best staff . Pension plan sponsorship that is realistic and aff ordable for any employer, anywhere in Canada, levels the playing fi eld, helping smaller en- terprises compete and succeed. James Pierlot is Blue Pier's founder and CEO in Toronto. For more infor- mation, visit www.bluepier.org. Credit: Stmool/Shutterstock Seventy-eight per cent of Canadian workers say a pension plan is a major factor in deciding to accept a job. GET LISTED IN THE HR VENDORS GUIDE Visit hrreporter.com/hr-vendors-guide HR Professional Development Description: Faccaerio. Name volore pre et atur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest que ventust qui re volorum quatat. Ed et aut aut harunt aut fugitata iur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest volorum quatat. Training and Development Description: Faccaerio. Name volore pre et atur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest que ventust qui re volorum quatat. Ed et aut aut harunt aut fugitata iur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest volorum quatat. 123 Queen Street Suite 101 Toronto, Ontario M1P 1M1 Canada Phone: (416) 111-2222 E: Info@companyname.ca www.website.ca Company Name Company Logo COMPENSATION info@resourcecorporation.com | (416) 498-7800 ext. 101 | www.resourcecorporation.com Compensation Surveys Compensation Surveys Compensation Surveys Incentive Programs Incentive Programs Incentive Programs Job Descriptions Job Descriptions Job Descriptions Job Evaluation Job Evaluation Job Evaluation Pay Equity Pay Equity Pay Equity Performance Appraisal Performance Appraisal Performance Appraisal Salary Administration Salary Administration Salary Administration Sales Compensation Sales Compensation Sales Compensation CONSULTING.

• Cover