When asked if they would rather keep their current group benefits or receive a $10,000 raise, 59% of employees chose to keep their benefits. When asked whether to take a $20,000 raise or participate in a group benefits plan, almost half chose the latter (1). Face it, in today’s economy, employees expect to have a comprehensive benefits plan in place at work. It’s one of the most important factors in deciding to join a new organization or change occupations. As an employer, you have to make sure that you are not losing potential skilled workers to your competitors by not having the proper benefits plan in place. Besides attracting key talent, group benefits also help you retain your current employees, boost satisfaction and increase productivity. As they say in the group benefits industry, a healthy employee is a productive employee.
Here are some of the features that employees are looking for:
- Extended health care, including prescription drugs, vision care and paramedical services (chiropractors, physiotherapists, etc)
- Dental care, including basic treatment, major procedures and orthodontics
- Short-term and long-term disability
- Life and accidental death & dismemberment
- Dependent life
- Health spending account
- Employee assistance programs
Packages can be made by choosing from the above list of features. It’s important to note that different carriers offer varying ranges of flexibility when it comes to choice, so make sure you have a qualified advisor compare quotes from multiple carriers.
Beyond the benefits mentioned earlier, group benefits are a tax-efficient method of compensating and rewarding your employees. Whereas bonuses and salary are subject to deductions such as federal and provincial tax, CPP, EI and union dues, group benefits are completely tax free. They are deductible as a business expense, lowering the business’s tax liability, and employees don’t have to pay for medical expenses with after-tax income, leaving more money in their pockets.
To see how we can help you grow your business with group benefits, head on to our contact page and send us an email.
1. The Sanofi-Aventis Healthcare Survey – 2011
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