The success of a business has many facades, but like anything that is to succeed, growth starts at the foundation. Employees are the backbone of every business large or small. And attracting and retaining top talent has become increasingly more difficult for most businesses. There is always competition in the industry. Employers have to stay up-to-date and get creative, as a competitive salary just won’t do it anymore.
Employee packages that include attractive benefits are one of the few ways that businesses can set themselves apart. As a crucial component to the success of your business, employee benefits create a more holistic, inclusive, accommodating and productive work environment. Nowadays most employee packages come equipped with employee benefits. Employee benefits are in fact a major contributing factor that is considered when starting a new job. Because of the many options, choosing the right employee benefits can seem like a daunting task. Careful research, consideration and insight is required. We have prepared some tips and insights in the selection process of employee benefits, and we have compiled a blog in order to share our knowledge with you.
Employee benefits may be the key difference that sets a business apart from its competitors, both for employers and employees. Choosing the right employee benefits is crucial for everyone. Employee benefit selections attract and retain top talent, increases overall employee satisfaction, and generally increases employee morale and productivity.
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Types of Employee Benefits
There are many employee benefits out there, so choosing the right benefits makes all the difference to the success of a business. Employee benefits come in the form of perks and advantages in addition to an employee’s income. Different types of employee benefits range from health and dental, wellness, retirement, life, workplace arrangements, time off, vacation days, mental health components, and more.
Employers have to compete and do their best to not offer their employees the best employee benefits plans available, but educate them on how to utilize them as well. If employees are taking care of their health and wellbeing, they will be able to perform their jobs better, and avoid absenteeism. Employers offer a variety of employee benefits in the employee package.
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Health & Dental
Health and dental plans are the most common plans offered by employers. Health and dental plans include benefits for prescription drugs, dental coverage, vision care, paramedical services such as chiropractor and physiotherapy, coverage for medical equipment, a cash benefit for hospital stay, and more. Younger employees might be more attracted to businesses that offer a good health and dental benefits package.
Disability Benefits will help protect your employees with a benefit should they become ill or injured and are unable to work because of this. The benefit will help employees focus on recovering, with reduced stress so that they may return to work faster.
Group Life Insurance
Life insurance plans pay out a benefit to beneficiaries in case of death. The purpose of life insurance is to protect the policyholder’s loved ones in case of death. Death involves legal procedures and costly bills. A death benefit will help the grieving loved ones mourn more peacefully and cover the costs of the funeral worry free. With Group Life Insurance, upon leaving the organization, the former employee would have the option to convert the life insurance portion into a private life insurance policy.
Group Retirement Savings Plan
Retirement benefits is a type of benefits plan that sets aside a savings account for workers to be used after they retire. Employees approaching retirement might find it beneficial to be at a company with a good retirement benefits package. There are a number of different retirement benefits in Canada. The Canada Pension Plan is a retirement savings plan that the government contributes to. Working Canadians contribute to the CPP, and the benefit amount depends on the earnings made in the workforce. Old Age Security is another government-run retirement savings incentive. Canadians who are ages 65 or older qualify to receive OAS. The benefit earnings are calculated based on how many years the beneficiary has lived in Canada after the age of 18. The Guaranteed Income Supplement is a monthly cash-benefit given to low-income Canadians after they retire. The amount received is based on income and marital status. An RRSP is a tax-free savings account that can be contributed to by Canadians via their payroll contributions.
Most employers accommodate their employees with paid vacation days. Vacation pay varies by province, but in Ontario for example, employees are entitled to two weeks of paid vacation days per calendar year after one year of service. Employees are compensated their regular pay during their vacation days off.
Factors to Consider When Choosing Employee Benefits
Gain an understanding of the factors to consider that pertain to employee benefits and learn how to align them with the needs of your employees and with the goals of your business. Create a benefits package that supports the well being of the employees, and promotes the long-term success of the business.
Some factors to consider when choosing employee benefits should be considered when choosing the right plan for you. One thing to consider would be the company’s budget, both for employer and employee. Other factors include considering the company culture and values, and considering the demographics of the employees, as these factors can help in selecting the most suitable employee benefits. Factor in the budget as well, how much the company can afford, and how much it will cost the employees for the benefits after deductibles. Employees can also provide feedback to the company and suggest which employee benefits would work best for them. More factors to consider are the laws and regulations, make sure the benefits are in compliance with the laws and codes of your region. Also consider what kinds of employee benefits your competitors are offering their employees.
Tips for Choosing the Right Employee Benefits
There are many employee benefits options available. Learn how to strategically make the right choices for your business. Gain confidence on how to navigate the selection process with more insight in order to overall enhance your company brand.
A good tip to utilize when choosing the right employee benefits is to conduct a survey amongst your employees to get an idea of their needs. Consider comparing costs to make sure you can afford the right employee benefits, see what employee benefits your competitors utilize, offer a variety of benefits so that all employee’s needs are met, and remember to communicate the benefits effectively so that employees make the right, informed decisions.
Communicating Employee Benefits to Employees
The true potential of employee benefits can only be fully optimized when employees have a good understanding of what is available to them and how to take advantage of it.
Clear and effective communication about employee benefits helps keep employees educated and helps them understand all the intricacies of their plan. Ensure that your employee benefits package is easy to understand with concise and clear wording. Use multiple avenues of communication such as team meetings, seminars, emails, and posters. Highlight the importance of choosing employee benefits. Have accessible resources such as an FAQ hub for your employees to stay informed and a benefits guide. You may also want to personalize communication by segmenting your employees into age groups or job functions. Have your employees provide feedback so that you may improve your communication skills.
In the next article in this series, read about Maximizing Employee Benefits.
As we can see a lot of thought is put into choosing the right employee benefits for your business. For added value to your business, Group Enroll is a leader in offering comprehensive and competitive group benefits. Careful consideration is required and factors such as costs, employee concerns, competitors, and effective communication are all taken into account for. Surveys and offering a range of benefits coupled with clear communication and regular review and updates of the employee package attracts and retains top talent. Employee benefits are a great investment to the longevity of your business’s success. Your business can be a productive and positive environment that is set apart. Choosing the right employee benefits ensures that your business will thrive in the long-term.