Thinking big with group health insurance coverage for small businesses
If you are a small business owner, you know that you have to invest money in order to make money. Whether it’s hiring new staff, purchasing equipment or renting an office or storefront to house your business, these investments are necessary to ensure its long-term profitability.
While many small business owners try to go it alone at the outset, as the business expands, the work becomes overwhelming for a single person. Employees are then hired to offset some of the pressure faced by the owner so that they can focus on managerial, operational and financial tasks. The employees must be properly compensated for their efforts, and this goes beyond simply giving them a competitive hourly wage or salary.
One effective means of attracting and retaining staff is with a group benefits program such as Group Pension Plan. Available from various insurance providers, group benefits help your employees cover certain costs associated with healthcare and personal welfare. You can also customize the package with add-ons to ensure the needs of your employees are adequately covered.
Despite the many positives, several small businesses in Canada believe they are too small to offer benefits to their employees. Research conducted by Sun Life Financial shows that only 40% of Canadian small businesses with between five and 49 employees offer a group benefits package. But as more small businesses experience growth, employee retention becomes key to their success. As a result, benefits providers are creating customized group benefits plans geared towards small businesses.
Now is the time to overcome the “too small” mentality and focus on future growth, and that begins with group benefits for small businesses that will improve your employee retention rates. In this article, we will explore seven reasons why you need group benefits for your small business.
Table of Contents
When you hire employees to assist you with the operation of your small business, it’s important to ensure they are properly compensated for their efforts. This includes offering them a salary that is both fair and in line with their experience along with benefits. While there is some thought that benefits packages are exclusively for larger corporations, group benefits plans for small businesses are also available.
Regardless of the size of the business, employees like to be appreciated, and a group benefits plan for a small business is one way of showing that you value their efforts. If you can offer your employees a competitive salary and a group benefits designed for small businesses, they will be more likely to remain loyal to you for a long time.
Attracting best employees
Similar to reason number one, if you want to retain your best employees, you must first find a way to attract them to your business. If a prospective employee has received multiple job offers, including one with your business, it’s up to you to make your offer as competitive as possible. Group health benefits for small businesses are an effective means of doing so. If a potential new hire likes the offer you’re made them, in addition to the coverage offered by your group benefits package, they will be more inclined to accept your offer of employment and start working for you.
If a business is a machine, then productivity represents the gears that power it. Productive employees ensure that your business is running smoothly. If deadlines are being met, orders are being filled and the needs of new and existing clients are being satisfied, your small business is firing on all cylinders and is dedicated to getting the work done.
According to a study conducted by Canada Life Group Insurance, 25% of those surveyed indicated that group benefits and other incentives are most likely to positively impact workplace productivity. If you obtain group benefits for your small business, not only are you helping your employees cover certain personal expenses, you are also helping your workforce remain satisfied. This is proof that contented employees are productive employees.
Providing financial assistance
A person’s financial situation can change on a dime as a result of several factors. Most notably, serious illnesses often place a large financial strain on some people, as there are numerous expenses associated with the recovery process.
Thankfully, assistance is close at hand. Group benefits for small businesses to help your employees cover certain important medical costs, ranging from extended hospital stays to prescription drugs. These expenses, while necessary, can add up quickly, and group benefits plans for small businesses to ensure your employees and their dependents are adequately equipped to handle these costs. Depending on the nature of the illness or injury, some employees may choose to supplement their group plans with individually-purchased health insurance policies.
The Trillium Drug Program is Ontario’s attempt to battle modern-day financial issues on health for their residents in need. Learn more here about this plan.
A tax-efficient solution
A further extension of the financial assistance element, group benefits for small businesses are tax-free in most Canadian provinces; Quebec is the sole exception to this rule. Group insurance for small businesses uses your employees’ pre-tax income, which ultimately leaves them with more money in their pockets.
This group policy provides advantages for both the employer and the employees. This is because the employees receive access and coverage for health and dental plans while the premiums paid by the employer for the benefits are tax-deductible.
Improving workplace wellness
Group benefits plans for small businesses do more than provide your workforce with health and dental insurance coverage and tax savings. Your plan’s provider may also offer additional benefits in the form of a workplace wellness program.
By instituting a wellness program for your employees, you are helping to improve their well-being, which ultimately boosts their morale and leads to less absenteeism. As previously mentioned, the happier your employees are while at work, the more productive they will be.
Strength in numbers
Many small businesses are deterred from purchasing group benefits plans because they believe they are too small for them. But as your workforce grows, so too does the need to retain your talent. By obtaining group benefits for your small businesses, not only will you be able to reward your employees for their hard work, but you will also be able to help them save money simultaneously.
Group benefits for your small business provide useful health and dental coverage in addition to group buying power. This leads to reduced rates for the group benefits coverage and savings for all involved. Furthermore, your employees can pay for their benefits using deductions from their paycheques, and lower rates lead to lower deductions.
Benefit from group benefits today
Group benefits for small businesses are available from most major insurance providers or licensed insurance brokers. If you are in the market for a group benefits package for your small business, this article ‘Best Small Business insurance for 2020‘ might interest you before getting one. Once ready, you can get a quote from our website today. Click on the button below and complete the pop-up form. Once submitted, one of our agents will contact you to discuss your options.