Worker retention is now one of the most significant issues for the construction industry in Ontario. There is a shortage of skilled tradespeople, projects are becoming more complex, and competition for trusted workers is intense, particularly among small construction companies. Pay is a necessary but not sufficient condition for retaining good employees in the long term, as wages are an important factor.
A well-designed group benefits plan is one of the most effective, yet least used, tools for enhancing retention. Small construction companies should view group benefits not as an additional cost but as an insurance policy for stability, productivity, and future development.
The Retention Challenge in Construction
Construction is a physically strenuous occupation with deadlines and, in most cases, seasonal ups and downs. Employees often switch employers in search of better pay, benefits or work-life balance. The turnover may be particularly detrimental to small firms.
The loss of skilled workers results in:
- Delays in projects and wastage of productivity
- Increased costs of recruitment and training
- Increased risks to safety due to the lack of experience of the employees
- Poor professional relationships with clients
It is more cost-effective to retain experienced employees than to continually replace them, and group benefits help build that loyalty.
What Are Group Benefits?
Group benefits are insurance and wellness plans provided to employees by their employer as a component of the comprehensive compensation package. For construction companies, plans can be tailored to workforce size, budget, and job requirements.
The common group plan benefits include:
- Health and dental coverage
- Prescription drug plans
- Disability insurance
- Life insurance
- Health spending accounts (HSAs)
- Employee assistance program (EAPs)
The difference that even small benefit packages can make for employees is significant, especially in the trades, where such packages are not guaranteed.
Why Group Benefits Matter to Construction Workers
Construction workers are often exposed to high risks of injury, illness and physical strain. Health and income protection benefits are not perks; they are necessities.
Group benefits help workers:
- Receive dental treatment, physiotherapy and prescription drugs
- Manage recovery time after injuries or illness
- Secure their families economically
- Reduce health and financial stress
When employees feel supported both at their job site and outside of work, they are more likely to continue with the same employer.
Improving Retention Through Financial Security
Uncertainty is one of the factors that causes construction workers to change their employers. Any lapse in coverage, lack of disability coverage, or fear of medical expenses will drive workers elsewhere.
Group benefits are financially stable in that they:
- Replace income for short- or long-term disability
- Minimize out-of-pocket healthcare costs
- Provides life insurance coverage for dependents
This feeling of security creates trust. Employees will be less tempted to quit their employer that takes care of their health and financial security.
Competing With Larger Construction Firms
Small construction companies often believe they cannot compete with larger companies that offer full benefits. In fact, the current group benefit plans are highly flexible and scalable.
Insurers provide small business solutions, which include:
- Entry-level benefit plans
- Cost-shared premiums
- Modular coverage options
- Health expenditure budgets on a fixed basis
Even by providing a basic benefits scheme, small companies can instantly become more visible in a crowded labour market.
Group Benefits Reduce Absenteeism and Improve Productivity
Healthy employees deliver better results. Group benefits also motivate employees to seek medical care when they have health problems, rather than delaying treatment due to cost.
Benefits such as:
- Dental checkups
- Mental health support
- Chiropractic treatment and physiotherapy
Assist in minimizing absenteeism, reducing chronic issues, and shortening recovery periods. This reduces days off and makes project schedules more manageable, which is critical for small-scale construction projects.
Supporting Mental Health in a High-Stress Industry
Construction is not only physically but also mentally stressful. Work pressures may burden psychological well-being, including long working hours, deadlines, and job insecurity.
Some of the benefits offered through group benefits with employee assistance programs (EAPs) include:
- Confidential counseling
- Stress management resources
- Financial and legal advice
Mental health support is a sign that an employer values workers as individuals rather than as labour, and it is highly effective for retention.
Building Loyalty and Company Culture
Employees who feel valued always stay longer with the same company. Group benefits foster a positive work environment by demonstrating the company’s care for its employees.
For small construction companies, this may cause:
- Stronger team morale
- Existing workers are likely to provide more referrals
- A reputation for being a responsible employer
- Increased involvement and dedication
Benefits strengthen relationships between employers and workers in an industry built on teamwork and trust.
Cost Control and Tax Efficiency for Employers
Group benefits come with costs, but they also provide financial benefits. Businesses typically have a deductible on their premiums, and group plans are usually more affordable than individual plans.
Also, foreseeable benefit expenses benefit small firms:
- Budget more effectively
- Avoid unforeseen situations of hardship for employees
- Minimize the costs of turnover
Group benefits may pay for themselves when compared with the high cost of recruiting and training new workers.
Customizing Benefits for Small Construction Firms
The best benefit programs are customized- not embellished. Small construction companies can develop plans that align with employees’ priorities and financial capacity.
Options include:
- Beginning with fundamental health and dental insurance
- Income protection with additional disability insurance
- Getting flexibility with health spending accounts
- Coverage is gradually increased as the business grows
When you design a well-structured group benefits plan, it grows together with the company.
Conclusion
The labour market in the modern construction industry is highly competitive, so worker retention is not a luxury but a business requirement. Group benefits are among the strongest tools small construction companies can use to attract, retain, and support skilled workers.
Small firms can minimize turnover rates, enhance productivity, and build a loyal workforce that grows with the business by providing benefits that safeguard health, income, and peace of mind. The benefits of a group plan go beyond basic insurance; they also include investing in the people who drive the company’s growth every day. To learn more, contact Edward Fayer.
FAQs
- Do small construction firms gain anything when using group benefits?
Yes. Group benefits help small construction firms attract qualified workers, reduce turnover, enhance morale, and compete with larger employers without significantly increasing total labour costs. - Which benefits are most important to construction workers?
Most appreciated are health and dental coverage, disability insurance, prescription drugs, and mental health assistance, as construction workers face greater physical and income-related risks. - What is the number of workers required to initiate a group benefits plan?
Group benefits are affordable and available through a range of insurance providers, offering plans for as few as one or three workers to a small construction firm. - Are group benefits effective in the retention of workers?
Yes. When there is financial stability, health coverage, and additional support beyond hourly compensation, employees tend to remain with their employers. - Are small construction firms able to control benefit costs?
Yes. Employers can control costs through cost-sharing, health spending accounts, modular coverage, and by selecting benefit levels that fit within their budget. - Are group benefits tax-deductible for construction workers?
In most cases, employer-paid group benefit premiums are tax-deductible business expenses, which makes group benefits a cost-effective and tax-efficient investment.
