It is in the news everyday now. Not just in Canada but across North America. There is a labour shortage and, it seems, no sector is immune. However, in this time of growing inflation, who can afford to pay increased salaries, not to mention the effect that would have on inflation? One way to make a job more attractive and help maintain existing employees, without boosting salaries, is to improve the quality of your employee group benefit plan.
Insurance industry surveys consistently show that, given the choice, employees will often take a benefits plan over a salary increase. Prospective employees will also consider a lower paying job if benefits are in place. Recent experience has shown that this is true even with higher income employees. Employees, particularly those with families understand the value of a good drug plan or dental coverage as well as income and life insurance. The cost of some medications can actually exceed some peoples’ annual income.
Make the Most of Your Plan
The average employee benefit plan can cost anywhere from 4% to upwards of 10% of payroll depending upon the plan and the payroll value. While some types of workplaces such as auto repair or restaurants and other small businesses are just now starting to realize the need to offer benefits to attract or maintain employees, others with existing benefit plans find that they need to improve their existing plans to do the same.
Additions to Existing Group Benefits Plans
For those with existing plans, employees generally like to see a more generous offering. Particularly as costs for health care services are increasing. This might include:
- adding or increasing the vision care benefit
- increasing the coverage for mental health services
- Employee and Family Assistance Plan
- Increasing paramedical maximums
- Increasing dental maximums
- Adding major dental or even orthodontics (larger plans)
- Adding a Health Care Spending Account; giving employees an annual allowance to spend on healthcare products and services as they wish.
- Offering a group RRSP or TFSA with employer contribution.
- Addition of disability coverage (if not already in place)
New Group Benefits Plans
For employers looking to add benefits for the first time, affordability is often the impediment. Providers, such as ASSOCIUM Benefits, offer:
- small-group fully-pooled starter plans
- association plans
- stand-alone Health Care Spending Accounts
- Employee and Family Assistance Plans
- group RRSPs and TFSAs and more.
Contact ASSOCIUM Benefits or your advisor to find out more of what can be done to attract and maintain employees with an employee benefits strategy.