Certified Employee Benefits Specialist

Presented to
Perry Barton, Instructor
Mgmt 2215 Evening, Team Project

By
Debra Baldwin

March 29, 2015

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In todays business environment, what sets you apart from the competition is not only
your education and work experience, but the latest trend is in industry certification. For Human
Resources professionals engaged in compensation and benefits administration, the industry
certification is called a Certified Employee Benefits Specialist. The research shown here will
indicate why this certification is needed. This will also address how to obtain the certification as
well as which companies are using it. The HR professional must decide if the investment is
worth it to set them apart from the competition. Of course if one is already employed and the
employer will share in the cost of the education needed for certification, the CEBS designation
will benefit the organization and the recipient alike.
Many industries are facing a labor shortage and in order to attract new talent and remain
competitive, organizations are seeking to enhance the compensation package and look at it as a
whole, referred to as a total rewards program. No longer are benefits viewed only as medical,
dental and vision insurance. Additionally, compensation is no longer viewed in simple terms as
pay and vacation time allowances. Workforce recruitment and ultimately retention, both have a
significant impact on the organizations bottom line. As a result, the Human Resources
professionals who work on this total rewards program are more likely to be a part of the
executive team and aligns the rewards with the organizations overall plan.
Compensation and benefits professionals have a wide variety of responsibilities which
may include negotiating with vendors on contracts, creating employee wellness programs,
assessing the competitors and their benefits offerings, finding value added benefits, working on
merging organizations, meeting health care reform guidelines and adhering to the companys
financial plan. This approach is significantly different from recent decades when an
organizations benefits professional was just there to administer existing plans that the
organization had maintained for years. In todays changing marketplace, a business must use
compensation in order to attract and retain the best talent in their respective industry. In Exhibit I
at the end of the paper, you will find a graph that indicates the weighted averages of the
importance of employee benefits in recruiting skilled employees and this number is expected to
increase over the next five years.
A compensation and benefits professional must also adhere to tight budgets and create
new opportunities for the organization to reduce expenses on the ever increasing cost of
providing health care while still adhering to the new Affordable Care Act mandates. The
changing plans under the ACA have forced employers to re-enroll adult children who are under
26 years of age and also to remove lifetime maximums. These requirements have added to the
number of plan enrollees and a compensation professional must weigh the shared cost to the
employee and the organization that results from the increased coverage. Though many
individuals thought that large employers would simply stop providing coverage and provide a
fixed allowance paid to employees, most have determined that their employees would consider
this a pay cut of a tax free benefit. Whereas if the employer provided a financial stipend for the
employee to purchase insurance through the healthcare marketplace, those funds would be
considered taxable income. As a result, most large employers have chosen to continue health
insurance provisions. The employers are simply changing the plan offerings to more high
deductible plans and teaching their employees to be better consumers of health care. The

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employers may also choose to add the spousal surcharges to the employees share of the cost as
people who may have previously gone without coverage must now purchase it or pay the penalty.
When a compensation professional must communicate the overall benefits package, they
are no longer able to select one medium for the communication. Todays multi-generational
workforce utilizes different modes of communication, therefore the employer must be able to
present the information in a variety of platforms that meet the comfort level of the specific
generations. The baby boomers are more likely to read print editions of materials and prefer to
talk to a human to get the answers to any questions they may have. The Generation X group
prefer to read e-versions of materials online and the Generation Y members prefer an app on
their smartphone to access their information. Organizations must be flexible not only in their
communication but in the benefits plan offerings which allow the various generations to create a
custom selection of plans that best meets their needs for the life stage they are currently in. A
Generation X employee may want the least out of pocket medical expense because of raising a
young family, however a boomer may desire to set aside health care dollars for retirement and
may find a high deductible Health Savings Account to be more favorable than low co-insurance
and deductibles. Figuring out the details of how the generational needs of the workforce vary are
one of the many challenges that todays compensation professional will encounter. When the
employer understand the differences and is able to communicate in an effective way, the
employees will increase their engagement overall and hopefully that will translate into increased
participation and ultimately the tenure of the workforce.
The millennial generation are more likely to be attracted to an employer because of the
benefits than other age groups. Because this group stayed at home longer or were forced to
return home during the recession, they have a closer bond with their parents and are more likely
to consult with them before choosing to accept a job. This group also values financial education
and plan offerings and are interested in some of the value added plans that employers may have
with national discounts on insurance for the home or auto and tax advice, as well as financial
planning for retirement. Organizations in the past have often awarded separate vacation and sick
days as part of the paid time off classification. Many employees want the flexibility to use the
days as needed and as a result, the compensation professional may bring this to senior executives
to consider a simple PTO or paid time off total based on hours worked and years of service that
is earned each week. This allows both the employee and the supervisor the freedom to allow the
time off without worrying if the missed hours fit into the classification of sick time. Some
forward thinking organizations have offered cafeteria plans over the years which allow the
employee to sell back up to one half of their paid time off in exchange for lower health insurance
premiums. This approach allows the employee to reduce their expenses and still have some time
off for much needed rest. This is yet another area that the benefits professional must focus on
when creating the compensation package.
Employee benefits should be considered part of a greater plan considered as total
rewards. There are several facets to these rewards that the benefits professional will encounter.
There are typically four areas on the total rewards model. The financial components have a
specific cost or value. The experiential component is the employees experience and interaction
with the leadership, the company, the fellow employees and the customers. The personal
benefits component are the employee specific items such as ones salary, bonus or success plan.

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The company component is the items all of the employees experience such as the working
environment, the benefits, and the culture of the organization. If you are a high performing
organization, your organization will not only communicate the total rewards information to the
employees but also create rewards that set the organization apart or differentiate them from the
competition. That may mean that there is a mentoring program or career development program
that a similar organization does not have. This will assist in employee retention again, because
of the engagement level of the employees and the opportunities for personal and career growth
that are present. Exhibit II shown below, indicates which of the rewards attract employees,
which ones retain employees and which ones increase the engagement of employees. With this
knowledge, compensation professionals can work with the senior leadership team in order to
develop the total rewards that will assist the organization in their future planning. Once that plan
is created, the compensation professional must use the multiple mediums of communication to
share the information with the employees.
Compensation takes on many forms and for this reason, the CEBS Certification will
better prepare the HR professional to deal with complex compensation packages, especially if
these are upper level C-suite positions that have a variety of components designed to attract the
best talent in the industry. As we have already discussed, benefits are not only health and
insurance, and compensation is not only a salary or hourly wage. The package can be much
more detailed and when dealing with executive positions, many items are negotiable. What are
some of the components that make up a compensation package in addition to salary? There are
variable wages such as those for sales personnel based on volumes. Another variable wage is an
annual bonus based on results versus plan. Many companies offer a variable wage based on the
companys overall performance versus plan. An organization may offer a sign-on bonus if a
position is particularly high in demand and low in supply in order to attract the best talent. In the
field of education, compensation is based on the level of degree that one has. For executives,
compensation may also be paid in stock rewards and also in stock options, which may be
available now or deferred awards. This have a variety of tax implications for the recipient and
they may choose to exercise their options in another year. Compensation may also include
housing allowances, relocation packages, a company car or car allowances. Executive
compensation may include membership in trade organizations, the local Chamber of Commerce,
or the local golf club in order to entertain clients. Executives, though this may not be considered
an actual compensation, have access to company leased suites at professional sporting events,
season tickets to arts performances or use of the corporate jet. Again, these are complex issues
that the CEBS certification would help the HR professional learn to navigate if they havent
already.
Why should an HR professional who works in compensation or benefits obtain this
certification? Because of the outsourcing and current technology trends, there is only an
anticipated growth of just 3% of benefits professionals over the next 6 years. This will mean that
there are more professionals available than there are jobs. If a professional has a masters degree
or other certification that sets them apart from the competition, they are more likely to have a
better opportunity to obtain a compensation and benefits position than lesser qualified
individuals. What are the advantages to obtaining the CEBS credentials? This nationally
recognized certification will allow a benefits professional greater credibility when applying for a
position and will enable the professional to display the necessary knowledge and demonstrate the

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needed skills for the position. How does one go about obtaining the credentials for Certified
Employee Benefits Specialist or CEBS? This certification program is administered by the
International Foundation of Employee Benefit Plans. The educational programs, standards and
academic content are overseen by the Wharton School of Business at the University of
Pennsylvania. The program allows the benefits professional to obtain a designation in three
different areas of expertise. These areas are compensation, retirement and group benefits. The
CEBS program consists of eight courses. There are currently about 12,000 CEBS graduates in
the US.
Another type of certification available is overseen by the World at Work Society of
Professionals and that designation is called the Certified Benefits Professional. This program is
for those professionals who desire to administer and design comprehensive benefits plans while
meeting both regulatory and legal requirements. This program also provides training in
outsourcing benefits and working with partners to communicate the necessary benefits
information. The Certified Benefits Professional must pass seven exams.
The World at Work Society of Professionals also has a program called the Certified
Compensation Professional program. This particular certification provides education on
compensation programs and the integration of those along with the strategy of the business.
Professionals receiving this designation are trained to design as well as administer both base pay
and rewards or bonus pay. This training includes the understanding of U.S. regulatory and legal
requirements and finally the ability to communicate the compensation information effectively.
The Compensation Professional must pass nine exams to demonstrate the skills that have been
learned.
We will look at some organizations that are utilizing the CEBS graduates. In reviewing
the January through May 2013 CEBS graduates list we see a variety of organizations. This
includes big names like TransAmerica Insurance, Acclaris, Aon Risk Services, Inc., Kellogg
Company, Prudential Insurance Company, Medtronic Inc., Random House Inc., New York Life
Insurance Co., and Nestle USA. There were health care institutions such as Ebix Health,
MedStar St. Marys Hospital, Mid-Atlantic Permanente Medical Group PC, Patheon
Pharmaceuticals, Inc., M.D. Anderson Cancer Center at the University of Texas, and Salem
Health. There are many public agencies such as the Adams County Retirement Plan, Mountain
States Employers Council, Colorado State University, Carroll County Maryland, and he Los
Alamos National Laboratory. In addition to the many agencies listed above, there were nearly a
dozen individuals that did not list a title or employer and may have obtained the certification
strictly for personal career growth and opportunities.
The CEBS program has a registration fee of $125 to begin and then one must pay for the
materials for each course of $150 to $350. These required courses for CEBS designation are as
follows: Human Resources and Compensation Management, Compensation Concepts and
Principles, Group Health Plan Design, Group Benefits Management, Retirement Plan Design and
Retirement Plan Management. The student must elect two additional courses from the
following: Personal Financial Planning 1; Concepts and Principle, Personal Financial Planning
2; Tax and Estate Planning Techniques, Asset Management, Health Care Financing and
Economics or Executive Compensation and Compensation Issues. Each course requires a final

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exam which alone costs $315 apiece. Students must also pass the eight two hour exams that
consist of 100 multiple choice questions that cover the course content. Exam retakes are
available at $145 each. The CEBS candidate must take the exam within the registered academic
quarter or pay a $100 extension fee to delay the exam to a future quarter.
There are many professional positions available to CEBS graduates at a variety of pay
levels. A business support, entry level person may earn as little as $34K, with a mid-level HR
professional earning closer to $55K, a manager earning $98K and a top benefits executive
earning over $170K. The differences are significant and not only are a result of the persons
education and certification but also the experience and broad skill set that one can bring to the
table. How can one enhance the earning potential? Look for mentors in the compensation and
benefits field and work with them to learn new skills and to improve areas of personal weakness.
Be willing to accept a lesser role in order to learn a new business are which you are not familiar
at. Accept a position in an industry outside the one you currently work in to broaden your skills.
If one is currently in retail, try changing to the wholesale or supply-chain side of the business to
get a perspective on the full cycle of goods from raw materials to finished product. Enhance
your skills by working on business team projects with cross-functional or international groups
that may broaden your exposure to those who think and work in different ways than one may
currently. Seek to participate in acquisitions so that the opportunity to make a huge impact on
the organizations bottom line. Take on project management in order to learn directly how a
business is run. This can be complex and difficult but may also allow the most personal growth.
Consider taking on consulting opportunities that may present new challenges in a short-term
cycle. All of these items will work to build your skills, your confidence and your future value to
potential employers. You may have to accept a few lateral positions before you can continue
moving up the ladder but consider all of them as stepping stones on a broader foundation.
When possible, work with your existing employer to share in the cost of certification.
Many organizations are now requiring the CEBS certification before being hired but some will
allow the certification to be earned within one year of the hire date. For organizations willing to
wait, negotiate the cost of the program as a part of the hiring package. Classroom education can
cost as much as $4-6K and that is without the testing fees. Evaluate your options carefully when
selecting a program of this type of study. All classes are available online but the reality is that
many students perform better in a face to face learning environment, especially if they are a baby
boomer and not a millennial. When you are prepared to obtain the needed education to obtain
the Certified Employee Benefits Specialist credentials, you will not only be increasing your
personal value but also that of the organization that you work for. The risk of benefits programs
and the cost associated with compensation programs are of high concern for senior executives
and the board of directors alike and with the necessary skills and training, you can contribute to
the careful balancing act necessary for an organization to achieve the results that keep it
competitive. This is a highly personal decision and one that each HR professional must weigh to
see if the rewards exceed the time and cost investment in order to obtain the CEBS credentials.

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Exhibit I
Use Benefits to Recruit Skilled Employees

Source: HR Magazine March 2013

Exhibit II

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Works Cited
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24 Mar. 2015.
Bergstrom, Kathy. "Education with Tangible Results." Benefits Magazine 51.9 (2014): 70.
Advanced Placement Source. Web. 26 Mar. 2015.
"Cebs Graduates." Benefits Quarterly 29.3 (2013): 79. Advanced Placement Source. Web. 25
Mar. 2015.
Cussen, Mark. "Certified Employee Benefits Specialist (CEBS) Certification - Designation
Requirements." Money Crashers. N.p., 23 May 2011. Web. 30 Mar. 2015.
Hicks, Michelle, and Lori Block. "What's In It For Me?" Targeting Rewards Messaging To All
Generations." Benefits Quarterly 30.2 (2014): 47-50. Business Source Complete. Web. 25
Mar. 2015.
Howe, Neil. "How The Millennial Generation Is Transforming Employee Benefits." Benefits
Quarterly 30.2 (2014): 8-14. Business Source Complete. Web. 25 Mar. 2015.
Kwon, Jane, and Pam Hein. "Employee Benefits In A Total Rewards Framework." Benefits
Quarterly 29.1 (2013): 32-38. Business Source Complete. Web. 25 Mar. 2015.
McCafferty, Dennis. "Flexible Benefits Plans Attract and Retain Workers." Baseline (2014): 1.
Computer Source. Web. 25 Mar. 2015.
Wells, Susan J. "BENEFITS STRATEGIES GROW. (Cover Story)." HR Magazine 58.3 (2013):
24-34. MasterFILE Elite. Web. 24 Mar. 2015.

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