Offering employee benefits, which supplement individual health insurance with additional insurance products, is one of the best ways to attract top-notch employees to your company.
In business, you want to generate revenue while keeping expenses as low as possible. That’s why many employers try to save money by keeping health benefits plans to a minimum.
Although offering skimpy employee insurance plans might save your company money in the present, you’ll lose out over the long term. Don’t miss out on these advantages by failing to invest in group benefit plans:
- Attractiveness to new hires. When your company offers fewer benefits than your competitors, your competitors are going to score the best new hires.
- Healthy employees. Competitive group benefits businesses offer give current employees incentives to stay healthy. When preventive screenings, medications, and other treatments are affordable, your employees remain healthy and do a better job of managing stress.
- Lower tax burden. The group benefits businesses provide for employees can reduce taxable revenue. They also cause no increase in CPP, WCP, or EI payments. In many cases, your share of employee premiums is tax deductible.
- Incentive to stay. When your company offers health care benefits for employees and employee perks programs, your employees feel confident about building their families or taking care of aging parents while they work for you.
- Positive positioning. Millennials make up almost 40 percent of the workforce, and they want to work for companies that care about them and value their contributions. An attractive employee benefits package positions you as a caring, forward-looking employer, which makes millennials more interested in joining your team.
A COMPREHENSIVE LIST OF EMPLOYEE BENEFITS
You can offer almost any imaginable perk to your employees, but these are the most common group employee benefits employee benefits businesses currently offer:
- Supplemental health coverage for Canada’s national insurance program. These benefits cover medical consultations and procedures that Canada’s national health insurance doesn’t.
- Coverage for employee family members. Your employees can provide for the health needs of their spouses, children, and other dependents.
- Health benefits for travel. When employees are traveling on your behalf or enjoying a vacation outside of Canada, they won’t have to purchase a supplemental travel policy.
- Dental benefits. Dental insurance provides coverage for preventive dental care and dental procedures not covered by Canada’s national health insurance.
- Life insurance. In addition to purchasing their individual policies, employees can supplement their life insurance coverage with the benefits you provide.
- Disability insurance. If your employees have to miss work for a short time, or a disability makes them unable to do their jobs, disability insurance protects a portion of their income.
INVESTING IN THE FUTURE: GROUP RETIREMENT PLANS
In addition to the group insurance Canada businesses provide, offer your employees a competitive retirement plan. Most businesses match a percentage of their employees’ contributions as a way of saying “thank you for your service.”
REGISTERED RETIREMENT SAVINGS PLANS
Your employees can contribute to RRSPs, and you can match their contributions as part of your overall compensation package. However, keep in mind that your contributions will count as taxable income for your employees. Remind them that the total of their contributions and yours shouldn’t exceed the current year’s deduction limit.
OTHER TYPES OF RETIREMENT INVESTMENTS
In addition to contributing to individual RRSPs, you can offer life income funds (LIF) to employees after they turn 55 years old. These accounts pay out locked-in RRSPs and locked-in retirement account (LIRA) proceeds, including pensions transferred from other companies.
After transferring funds to their LIFs, employees can withdraw them according to minimum and maximum allowances. They can use the money to fund their children’s educations, to care for aging parents, or for any other purpose. They can also designate beneficiaries who’ll receive any remaining money after they die.