The benefit of benefits

People in business ask me “Why I should have Group Health Plan for my Employees?"

My response is that “You have worked hard to build your business into the success it is today, and I know it’s important for you to invest in your staff. They represent you and they are an extension of your business”.

Working with many businesses I find that retaining key employees is a problem for them, and three quarters (75%) indicate it is one of the top three issues they are facing.

Small and medium sized businesses, find that, nine in 10 (86%) of owners and managers feel an obligation to take care of the people who work for them.

In a recent study, 59% of employees would prefer to have a benefits package rather than a salary increase as high as $10,000.

Also one in five (22%) of start-ups report having some form of health benefits, like a health benefits plan, flex plan, and/or health spending account. But of those that do, four-in-five (83%) feel that the group benefits plan is achieving the goal they set out to accomplish.

A group benefits plan helps to protect the financial security of your employees and their families against a range of situations: life insurance in case a breadwinner passes away; disability insurance for when a breadwinner is unable to work; and drug coverage, in case an employee or dependent needs prolonged or permanent therapy.

Most importantly, it provides financial security to your business which is able to attract and retain good people, which help minimize costs associated with high turnover.

As business strategy it can be used as an alternative to a pay increase – the increased raise value erodes with taxation.

As a Financial Security Advisor my priority is to develop a clear understanding of what success looks like to you into the context of risk management. Together we can analyze your situation, identify gaps, and build a plan to help achieve your short and long term goals. As well as monitor your plan regularly to ensure it meets your changing needs.

Why consult an Advisor? The cost of employee group insurance benefits plans has risen dramatically in recent years. That’s why it is crucial that you shop around and consult an expert who will be able to advise you properly and ensure you start your benefits plan the right way.

Qualified independent group benefit specialists know how each insurance company ranks when it comes to key plan features. This knowledge lets them make recommendations that produce the best group benefit value and you can better attract and retain good people, which helps minimize costs associated with high turnover.

Here are five great reasons to offer group benefits:

1. Attract and Retain Key Talent

A well-designed group benefits package can help to make your business more competitive, recruit top talent, retain employees and boost employee satisfaction and productivity.

2. Protect Your Employees’ Financial Security

While Canada’s national healthcare program gives Canadians access to doctors and emergency medical treatment, it doesn’t cover everything. In fact, some new drug treatments can cost as much as $400,000 per year. A group benefits plan helps to protect the financial security of your employees and their families against a range of situations: life insurance in case a breadwinner passes away; disability insurance for when a breadwinner is unable to work; and drug coverage, in case an employee or dependent needs prolonged or permanent therapy.

3. Provide Tax-Efficient Compensation, Boost Productivity

59% of employees would prefer to have a benefits package rather than a salary increase as high as $10, 000. Without a benefits plan, employees must pay for day-to-day health, dental and prescription drug expenses with after-tax income dollars. Employee benefit plans can be designed to cover these expenses using before-tax income—leaving more money in your employees’ pockets. Rather than trying to give them a raise that erodes with taxation

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