What are the best ways to keep my group benefits costs low?
The recipe for any good business starts with good people, so offering comprehensive employee benefits is key to attracting and retaining the best talent. However, for many small and medium-sized businesses, the costs of benefits can be a major barrier; finding a balance between supporting employees and staying financially sustainable is no small task.
Fortunately, there are practical strategies to keep costs in check. One of the most effective ways to manage benefits costs is to utilize group benefits plans like the Chambers Plan. They operate on a pooled model, where premiums are shared among thousands of businesses. This approach spreads risk across a broad group, leading to more stable rates over time compared to standalone plans. By pooling resources, small businesses can access competitive rates that are often out of reach for smaller organizations.
Flexibility is another important factor when it comes to keeping benefits costs manageable. The Chambers Plan allows business owners to tailor coverage to meet the specific needs of their employees and their budget. For example, some businesses might prioritize extended health and dental benefits while opting out of higher-cost add-ons. This kind of customization means you’re only paying for what’s essential for your workforce.
Another advantage of offering employee benefits is the associated tax perks. Premiums paid for employee benefits are typically tax-deductible as a business expense, while many benefits provided to employees are non-taxable. This creates a financial advantage for both employers and employees.
A 2022 report by Benefits Canada highlighted that “employers that take advantage of tax benefits can effectively reduce the net cost of their benefits plans by up to 30%.” Which is a great reminder that there are built-in savings opportunities when you provide benefits, ultimately lowering the cost.
It’s also important to regularly review your offerings and help employees make the most of what’s available. Encouraging the use of virtual healthcare services like Teladoc and Hugr can reduce out-of-pocket expenses for employees while improving access to care.
Providing employee benefits isn’t just about financial incentives; it’s also a way to show your team that you care about their wellbeing. When employees feel supported with health, dental, and wellness benefits, they’re more likely to stay with your company. This reduces turnover, which can be costly when you factor in recruiting, training, and onboarding new hires.
An employee benefits survey reported that 91% of employees with access to healthcare services and wellness programs reported job satisfaction, versus only 56% to those without. Offering comprehensive benefits helps businesses remain competitive in the labor market by providing attractive employee benefits packages without incurring excessive costs. Happy employees are more productive and engaged, so investing in benefits is really an investment in your company’s long-term success
It’s 2025 – employers need practical solutions to provide meaningful benefits without putting too much strain on their budget. By pooling resources, customizing coverage, and taking advantage of tax benefits, The Chambers Plan can help businesses stay competitive while keeping costs under control. If you’re looking for a way to support your team and manage expenses, it’s definitely worth a closer look!
