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Why offer Group Insurance benefits?
Many business owners would agree that you have to invest money to make money. Whether its hiring new staff, purchasing equipment or keeping up with advances in technology, these investments are necessary to ensure the long-term productivity of your business.
While business owners constantly try to find ways to reduce their expenses and increase profit margins, opting out of group benefits is in fact the opposite of a smart financial move. In fact, an April 2021 Ipsos poll indicated that the majority of Canadians (68%) say they would take a job with a good benefits plan over another job that pays more but does not have a benefits plan (RBC Insurance).
With that statistic in mind, here are some key reasons why you should invest in group benefits:
Attract and keep employees
As Canadian businesses emerge from challenges of extended pandemic-related lockdowns, they now face the hurdle of attracting and keeping their workers amid record-high labour shortages. In this increasingly competitive job market, many employees are prioritizing workplace benefits plans.
“It’s been such a challenging and unpredictable year for so many working Canadians, so it’s no surprise to see more employees prioritizing their health and wellness needs alongside other job considerations,” said Julie Gaudry, Head of Group Benefits, RBC Insurance. “And with the broader recent trend of people leaving their roles as a result of job dissatisfaction, businesses must consider the value of benefits to better support employee mental and financial health (RBC Insurance).”
Help improve morale & productivity
Group benefits is more than just covering a visit to the dentist or massage therapist. It provides valuable protection and assistance in the event of catastrophic life events. Many plans include coverage for life-saving medical equipment, unforeseen health emergencies when travelling and catastrophic prescription drug costs.
Knowing that they have this coverage can give your employees a sense of security and alleviate the financial strain of dealing with a difficult illness or injury.
Group insurance is more affordable than private insurance
Group benefits include valuable wage-loss replacement insurance in the event an employee gets sick or injured and cannot work for a period of time (Long-Term or Short-Term Disability Insurance).
When purchased privately, this type of insurance can cost two to three times more than the average cost of group insurance.
Other considerations for a group insurance plan:
- The cost of premiums you pay can be deducted off as a business expense.
- A Short-Term disability group benefits plan can reduce your Employment Insurance premiums