For business owners that are struggling with employee retention or finding ways to boost employee morale, offering a group benefits plan can be a great way to solve both these problems.
There is a lot more to keeping an employee happy than just paying a salary. Added benefits and perks can make a job offer that much more attractive and incentivize employees to stay loyal to the business for many years to come.
Group Benefits and Group RRSP plans make for the ideal tools to bolster employee retention, employee wellness, and employee morale. Although these benefits do come at a cost to the employer, the advantages they offer far outweigh the cost.
In this article, we will take a closer look at what group benefits entail, how much they cost, and what advantages they can provide to the growth and success of a business.
The Expected Cost Of Benefit Plans For Employers
The average cost of a benefits plan can depend greatly on the size of the business (no. of employees) and the type of plan one opts for.
Generally speaking, for medium-sized businesses, you can expect annual premiums for group benefits to equate to about 15% of payroll. For large businesses and corporations, the average percentage is closer to 30% of payroll.
According to a survey, conducted by the Conference Board of Canada, it was found that the average cost of providing benefits to a full-time employee equates to about $8,400 per year. As such, benefits can amount to a significant expense for Canadian companies but at the same time are almost necessary in order to keep employees happy, healthy, loyal, and motivated.
Average Cost Of Benefits For Small Business Owners
If you are a small business owner, offering benefits that can cost such absorbent amounts can seem well beyond your means. However, don’t lose hope just yet!
Companies such as McIver Insurance, in association with Medavie Blue Cross, offer group benefit plans that are designed exclusively for small businesses that operate with 2-10 employees.
These group benefits can cost as less as 1% to 5% of payroll and are an extremely affordable and beneficial way for small business owners to help retain their most valued employees!
Employers also don’t need to bear the full cost of benefit plans. In fact, in Canada, employers are only legally obliged to pay 25% of the total cost of the plan, with the other 75% being paid by the employee.
Top Tip: Bundling a group benefits plan with a group RRSP plan can also lead to further savings and advantages for both the employer and employees.
The Advantage Of Group Benefits For Employers & Employees
The greatest advantage of offering group benefits is that it helps attract and retain employees. An employee is much more likely to choose to work for a business or company that offers group benefits than one that doesn’t, even if it means being paid a lower base pay.
This is because group benefits offer employees health coverage as well as insurance, giving them peace of mind, knowing that if something were to happen to them, their dependents will be taken care of. Furthermore, benefits such as a group RRSP plan also mean that they are able to save up for retirement.
All these benefits are crucial factors when it comes to deciding on a job offer and more times than not the business that offers the best benefits is the one that an employee is most likely to choose!
Thus, as a business owner, offering group benefits can provide a competitive edge when it comes to hiring and retaining the best talent available. Individuals are much more likely to want to come work for a business that offers a range of benefits than a competitor that doesn’t offer the same benefits.
By offering health, dental, vision, and drug coverage employees are much more likely to maintain their health as regular visits to the doctor and routine dental checkups won’t cost them any money. This can result in fewer sick days and improved employee satisfaction. A healthy workforce is a productive workforce and providing such benefits is only in the best interest of the business.
Group benefits can also provide certain tax optimization benefits for employers as all costs incurred are tax deductible.
All of these advantages make benefits a win-win solution for businesses of all sizes! If your business can afford it there is no reason why you shouldn’t offer benefits to your employees.
Frequently Asked Questions
Q) What Are The Most Common Types Of Benefits Offered By Canadian Companies?
The most common types of benefits offered by Canadian companies include; life insurance, health insurance, critical illness insurance, disability insurance, out-of-country insurance, accidental death and dismemberment (AD&D) insurance, as well as, coverage for prescription drugs, dental, vision and extended health care.
Q) What Are Mandatory Employee Benefits?
Mandatory benefits are benefits that any business in Canada must provide their employees according to Canadian Law without exception. These benefits include; compensation for sick leaves, vacation and statutory holidays, maternity and parental leave, critical illness leave, compassionate care leave, Canada Employment Insurance (EI), and Canada Pension Plan (CPP) contributions.
Give Your Employees The Protection & Benefits They Deserve With McIver Insurance Inc.
Employees are a business’s most valuable assets and as a business owner finding ways to attract and retain the best talent is essential for sustained growth and continuity. All successful business owners and far-sighted entrepreneurs understand the value that employee benefits can provide and how essential these benefits are in ensuring the success of a business for many years to come.
However, not all businesses can bear the significant costs associated with benefits, especially, if they are operating on a small scale. Luckily, thanks to McIver Insurance even small businesses that have small budgets can also take advantage of benefit plans that are tailored to be affordable while providing all the key ingredients that help boost employee morale, loyalty, and job satisfaction.
As Nova Scotia’s most trusted insurance provider our aim is to always find the most affordable and best-suited benefits plan that gives your employees the protection and peace of mind they deserve making them a lot less likely to go work somewhere else.
For a quote or estimate give us a call and speak to one of our highly qualified insurance specialists.