Brewing success

We have many employees who have worked here for 10 to 20 years. Historically, we have not had high turnover, [but] employee retention is something we stay on top of.

What soft benefits does Big Rock offer?
We always say, ‘Beer should be fun!’ Employees are invited to multiple [seasonal] staff parties, including an annual summer brewmaster’s barbecue and fall golf tournament. We have a monthly beer allowance for each employee. Employees receive one flat of beer every month to ensure that their fridge is always stocked. We also have long-term service awards (i.e., five years, 10 years, et cetera) to recognize employees at various stages of their careers. After 20 years of service, the award includes a cash bonus.

What financial incentives or retirement savings programs does the company offer to its employees?
Employees are awarded options or unit appreciation rights upon management’s recommendation and the board of directors’ approval. We didn’t issue any [for 2007 or 2008], mainly because these years were not financially strong years for us. We will continue to assess this
program as both an incentive mechanism and a retention tool.

Our bonus program is structured around financial and non-financial targets. Nat-ional, departmental and individual targets are outlined at the beginning of the year—these allow employees to see how their accomplishments tie directly to the overall success of the company. We are happy to report that the 2009 bonuses were paid, so our employees definitely enjoyed the rewards of the company meeting its goals.

In our group RRSP, Big Rock matches one level of contribution for the first two years. After two years, the level of contribution increases. The starting contribution is $45 a month and can increase up to 4.5% of an employee’s salary.

What is Big Rock’s corporate culture like?
Because of our modest size (120 employees), we can treat everyone as though they are part of the Big Rock family.

Open communication is one way we create an inclusive culture. The executive team hosts quarterly breakfast meetings with employees, sharing financial results and objectives for the next quarter. We listen to our employees, and everyone knows everyone. Ed McNally, the founder, still comes to work every day and knows everyone by name. People are not just numbers at Big Rock.

Has the brewery ever had an issue getting what it needs from service providers?
Actually, just the opposite. We renewed our benefits plan this year, and I asked to have it re-priced. Everybody came back to the table eager to insure us as a group, and we have the same benefits now as before.

I think insurance companies are really looking to retain business. Price increases are put out across the board, but when you look back at your claims history and see how your plan is doing—and when you ask them to sharpen their pencils—they are often willing to do the work.

What can other plan sponsors do to find cost savings in their benefits plans?
People need to understand what benefits are all about. Make sure that you have someone who is experienced in dealing with benefits costs and that he or she understands what is being priced. If you don’t understand your claims ratio or your experience losses and you have a discussion, you are going to be at a disadvantage. It’s important for employers to know what they are getting—and what they are paying for. BC

April Scott-Clarke is assistant editor of Benefits Canada.
april.scottclarke@rci.rogers.com

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© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the March 2010 edition of BENEFITS CANADA magazine.