As the job market grows competitive, for employers, the war to attract and retain top talent extends way beyond offering a paycheck. What workers look for in group benefits plans is how they will benefit their well-being, finances, and improve their quality of life. It is no longer seen as a perk; employers view it as a strategic investment that helps their business grow.
Whether you own a small business or manage a growing business, offering group employee benefits is one of the most effective ways to demonstrate that you care about your team. It is also a smart way to establish a conducive working environment. This blog post is designed for employers considering the option of offering a group benefit plan. We have outlined four major benefits, highlighting how it is a worthwhile investment.
1. Recruiting and Retaining Skilled Employees
For a fact, top professionals have ample choices at hand. So, how do they compare in terms of offer? It is the group benefits plan that makes the difference. With it, a company establishes that it does not treat its employees as mere workers, but as valuable team players. Potential candidates look at the health and dental insurance, life insurance and wellness support offered by the company.
Many industrial surveys reveal that, after salary, benefits are considered an important factor by employees. What this translates to is that companies with an attractive group benefits package have a better chance of securing top-calibre employees as well as retaining their services.
Today, the cost of recruiting and turnover rates are higher than ever before. This makes investing in employee benefits a sound financial decision. Replacing an employee can result in higher losses in terms of recruiting, training, and productivity. Employers must keep their existing employees content by offering relevant incentives. It reduces the risk of losing talented employees and maintains their morale.
2. Encouraging a Healthier, Productive Workforce
When employees are healthier, they are happier – and that means higher morale, increased concentration and overall increased productivity.
A well-thought-out group benefits plan includes insurance for health, dental, vision and mental health needs. Access to wellness programs is often an added advantage. Taking care of yourselves becomes a habit for employees without the stress of spending on physical and mental health needs.
Healthcare services lower the risk of serious illnesses. This means employees will rarely take sick leave, which can often disrupt operations. Another benefit that is increasingly sought in modern group plans is mental health support. It helps create a better work environment and reduce instances of burnout.
Employers capitalize upon these benefits: reduced leaves, active participation and better performance across teams.
3. Tax Benefits for Employers and Employees
Tax efficiency is an advantage of a group benefits plan that is often not realized. Premiums, which employers pay for health and dental benefits, are generally tax-deductible in Canada as a business expense. This creates a win-win situation for the business, as you are lowering your taxable income while investing in your team.
On the employees’ side, the majority of benefits offered in a group plan (such as health and dental) are not counted as taxable income. It only means that they can benefit from the coverage without having to pay from their salary. To find a more accurate explanation, the benefits become a less expensive method of compensation compared to a salary increment.
This tax-efficient strategy can be utilized by employers seeking innovative methods to enhance their compensation packages without increasing their payroll expenses, thereby providing greater value to their teams at a comparatively reduced cost.
4. Building a Strong Reputation and Culture for the Company
Employee benefits are not a mere transactional action, but they communicate the values of your company. You only feel like you’re a part of the organization when you’re cared for. It encourages you to do your job with dedication and proactiveness. You are more likely to spread good reviews about your organization and its work culture.
Word-of-mouth still stands relevant even at an age where candidates can go through online reviews about the organization or check their social media profiles. Any company offering strong benefits in a group benefits plan are more likely to have more positive reviews and recommendations. It works as a catalyst, improving their market ranking.
When every team member is aware that each one of them is taken care of, a team-first attitude is likely to take root. This results in effective communication and collaboration within the team, builds strong morale and creates a sense of unity.
Bonus: Customized Flexibility for Businesses of Any Size
Among the most widespread myths concerning group benefits plans is the notion that they are only applicable to large corporations. As rightly defined, yes, it is a myth.
Group benefits are available today in packages that can be customized according to team size and the budget of businesses, whether big or small. With five or fifty employees, flexible plans are at hand to suit your needs.
By seeking the services of a qualified insurance advisor, like Edward Fayer, you will be assured of a plan that is both affordable and offers wide coverage. Choose benefits that will meet the needs of your employees without breaking the bank – whether it is basic health, dental, or the optional add-ons of life, disability and wellness.
Final Thoughts
A group benefits plan is no longer a “nice to have” offering; it is a smart business move that can generate tangible value for both employers and employees. Whether it is recruiting skilled employees and improving their health, availing tax benefits and enabling a robust culture, the dividends on this investment are high.
Are you looking for group benefits for your employees or want to revise your current plan? Edward Fayer can assist you. We provide tailored benefits and suggestions that match your requirements. Get in touch with us to learn more!
