Many small business owners mistakenly believe they cannot afford to offer an employee benefit plan. While going without benefits may boost your bottom line in the short run, that philosophy may impact your businesses’ chance for long term prosperity. While it is critically important to address the financial health of your organization it can be just as important to address the health of your employees. Next to salary, employee benefits coverage is the most important tool in attracting and retaining top talent.
As a small business owner, losing a key employee could potentially be detrimental to your business. So, offering the right employee benefit plan can be a win-win solution for both the employer and the employees. By providing your employees the benefits they value, they’ll be more satisfied, miss fewer workdays, be more productive, less likely to quit and will have higher commitment to meeting the company’s goals while improving the overall workplace morale.
A few advantages of being a member of an employer sponsored benefit plan include:
- Adds financial security to you and your family
- Eliminates the need to meet any health requirements to qualify for benefits
- Offers more robust coverage and at a lower rate through a group plan than in the individual insurance market Can provide out-of-country emergency health care for business or pleasure travel so there is no need to purchase travel insurance
- Works out to be more financially beneficial than getting a raise because health and dental benefits are non-taxable to employees and not subject to EI and CPP like a salary increase would be
- Group Benefit plans typically cover dependents, in addition to the employee
Another misconception among small business owners is that they believe they are too small to offer benefits to their employees, however there are benefit plans specifically designed to cater to groups with as little as 1 employee. Benefit plans are no longer a one size fits all offering, there are many unique options depending on your philosophy and objectives. A good employee benefits broker can help design a plan that fits an employer’s budget, through coverage maximums, co-insurance, deductibles, employee premium sharing and per-visit maximums for paramedical practitioners.
Talk to us about your benefits plan today!