Know the Value of Employee Benefits Plans
You’re considering investing significant time and money into setting up an employee benefits plan. It may be money earmarked for something else, but you want to show your support for staff and their families without increasing hourly wages or salaries.
According to Tom Milne, a Benefits Canada expert, “Employee benefits plans are often one of the most expensive talent acquisition and retention tools offered by organizations these days.”
Rest assured you’re making a good investment — not just in the here and now, but also in the long-term sustainability and attractiveness of your company. Benefits matter to employees, which is the whole point of offering them in the first place.
If you’re not convinced that making the investment is a sound plan, here are the top 5 reasons why offering benefits makes sense for SMEs in today’s environment.
- Stability: According to research, 65% of employees said that having a benefits plan is a contributing factor to them staying with their current employer. If your business has a revolving door on the HR Department or your office, having a plan is an incentive to keep staff and give you some peace of mind.
You might think offering more salary could solve the problem, but you’d be wrong. A whopping 59% of employees would prefer keeping their benefits to a $10,000 pay hike.
- Retention: On the flip side of the benefits coin comes this statistic: 90% of workers would consider looking at new opportunities if they lost their benefits (e.g., your competition). In fact, 4 out of 5 employees list benefits as the deciding factor between staying or leaving a company. Benefits help keep your fully trained and knowledgeable staff from taking valuable and potentially propriety information to a competitor.
- Productivity: When an Employee Assistance Program (EAP) is part of a benefits package, worker productivity increases by 35.9%. Not only do employees get help with confidential mental health services or workshops to deal with stress or retirement planning, there are also services for employers related to HR mediation or management coaching services.
- ROI: There are big dividends that come from EAPs, too. For every $1 invested by owners, there’s an 8x return. You don’t need an expert to tell you that it’s an investment that makes good sense.
As well, EAPs help reduce absenteeism by 1.7 days. With an average saving of $274 per employee, there’s a tidy sum to be pocketed depending on the size of your business. Plus, many EAPs have telehealth services that allow employees to speak to a doctor and get prescriptions filled virtually to further reduce staff time away from work for appointments.
- Reputation: Employees think more positively of employers who have a benefits plan — 62% of them — which helps to reinforce many of the points above. And staff who feel they’re working for a decent employer and are supported in taking care of their wellbeing needs will be healthier. Research showed that 78% of workers who are in good health are happy in their current job.
Benefits go far beyond dental plans and massages to the very heart of what it takes to stay in business: employees. Today, there are plans that are customizable, scalable, and affordable to any size of business.
Take Chambers Plan. Coverage starts with 1 or more employee(s), and the annual renewal rate has been just 4% over the last decade. It’s the #1 plan in Canada, with over 30k businesses choosing it to protect their companies and their employees. Its not-for-profit structure ensures all the surpluses stay in the program to help control premiums.
Every Chambers Plan includes Business Assistance Service at no additional cost to give owners access to professional accounting, counselling, legal, and HR experts who understand the challenges business owners face.
Now that you know the value of employee benefits plans, we hope you’ll contact us to find a solution that works for your business. Call for a free quote. We’re the experts with benefits solutions for small business.