How Can Small Companies with Just 1 or 2 Employees Get a Good Benefits Plan?
Small businesses play a critical role in Canada’s economy, representing over 98% of all businesses in the country. Yet, many small business owners face challenges in providing their employees with competitive benefits, such as health and dental coverage. Even for micro-companies with just one or two employees, having access to a comprehensive benefits plan can be a game-changer for attracting and retaining talent.
But is it possible for such small teams to get high-quality benefits at an affordable rate? The good news is, yes – they absolutely can!
Leverage Group Insurance Programs
A major challenge for small businesses is high insurance costs due to a limited employee pool. However, organizations like the Chambers of Commerce Group Insurance Plan (Chambers Plan) offer a unique solution by pooling together over 32,000 Canadian small businesses into one large group. This collective approach enables them to offer affordable and stable rates to small businesses, regardless of size.
By joining a group plan, even sole proprietors and two-person teams can access benefits at rates similar to those available to larger companies. The Chambers Plan, for example, provides comprehensive options and rate stability, ensuring small businesses have a reliable plan without unexpected rate hikes. Rate stability in a pool of over 32,000 businesses allows small businesses to receive competitive pricing and guaranteed renewals—no surprises, just consistent support.
Benefit from Flexible Coverage Options
Small businesses often worry that standard benefits plans may not meet their unique needs. However, plans like the Chambers Plan offer customizable options so that business owners can select the coverage most relevant to their employees.
Options can include extended health and dental care, and even more specialized coverages like disability and life insurance. Many of these plans also provide add-ons for services like mental health support, which has become increasingly valuable to employees in today’s fast-paced world.
As Michael Weinstein of The Weinstein Group explains, “We are a small company and have found that in spite of being a small company, we get very good service. Being small doesn’t seem to affect how we are treated by Bensol!” This feedback highlights how small businesses, through group benefits providers, can still receive high-quality service and tailored advice, even with only a handful of employees.
Take Advantage of Additional Services
Joining a group benefits plan often provides access to more than just health and dental coverage. For instance, some plans offer free access to expert legal, financial, and HR advice, which can be extremely beneficial to small business owners who may not have in-house departments for these services. This additional support allows small businesses to stay compliant, manage employee concerns, and address legal questions—all of which can be valuable resources as they grow.
Understand the Tax Benefits
Benefits plans for employees are tax-deductible for businesses, making them an excellent financial choice. Employee health and dental premiums can be deducted as a business expense, and employees receive a tax-free benefit, which makes these plans attractive for both parties. In fact, research by the Canadian Federation of Independent Business (CFIB) has shown that small businesses are increasingly recognizing the value of benefits for improving employee satisfaction, retention, and productivity.
Investing in employee benefits may feel daunting for very small business owners, but fortunately, with group plans like the Chambers Plan, they have access to stable, flexible, and affordable options.
Whether you’re a sole proprietor or have a small team, having a conversation about benefits could lead to big savings, enhanced employee satisfaction, and improved talent retention. For small businesses, the right benefits plan can be an essential part of setting up for success in the long term.
