How To Use a Benefit Plan as a Compensation Tool
When people think of compensation, they usually think of payday. But an employee health benefits plan can be an integral and powerful part of an employee’s compensation plan.
The Competition Is Real
Attracting and retaining the best talent will set your business apart. But in today’s ultra-competitive employment landscape, with record-low unemployment in Canada, it’s increasingly difficult to do.
Gone are the days of advertising your vacancies in the local newspaper, when you were competing against a few neighbouring businesses. Prospective employees can now find a plethora of job openings in a few keystrokes or delivered directly to their phones. It’s a global world and many people are willing to commute and travel – that means your competition for workers is a lot tougher than it used to be.
It also means that your current employees can easily “shop” for something better than their current job. You’ll need some good strategies to retain employees.
Employee Health Benefits as a Compensation Tool
There’s more to life than money – and there’s more to compensation than a paycheque. That’s what many of your prospective and current employees think. They want employee health and wellness benefits! In fact, the majority of workers say that a company’s employee benefits plan is an important factor when considering a job opening.
Millennials (who now make up a large part of the workforce) are well-known for wanting non-monetary as well as traditional monetary compensation. Enter employee health benefits as a compensation tool.
So why are employee health benefits plan a great compensation tool?
Employees feel valued.
When you’re providing employee health benefits that help ensure they get the treatment they need, employees are going to feel like you care. It shows you’re not just in it for the 9-5 workday, but that you value them and their health, all the time.
Higher Quality Options.
You can provide better value and better products when you buy group benefits rather than individual purchases by employees. GroupHEALTH’s buying power is a perfect example: we’re able to both choose and help design the best products from multiple insurers, for the best value.
Peace of Mind.
Disability, Life and Critical illness insurance are just a few examples of employee health benefits that give workers some security. When a major life event occurs, employees and their families need to focus on recovery and stability. With these coverages, employees know that they or their families will have help in some very difficult situations.
Less out of Pocket.
Without employee health benefits, your employees will still be paying for many of the expenses typically covered by a group benefits plan – if they have the cash on hand to do so. The scenario changes when employers offer an employee benefits plan: even if an employee is paying for a portion of the plan, they won’t need cash-on-hand when they need treatment or care. And that feels pretty great for the employee.
It can be flexible.
The right employee health benefits plan can help meet the needs of a diverse workforce. If designed correctly, it can offer benefits that are tailored to both the individual needs of your employees and their family and the overall needs of your workforce. Plus, well-designed benefits plans give your employees a choice, so that they can decide the best use of their plans.
Those are just a few of the things that make an employee benefits plan a great compensation tool.
The End Result
When you begin to consider employee health benefits as a compensation component, you begin to realize its power in helping your organization:
- Attract the best talent
- Reduce turnover
- Improve productivity
- Gain favourable tax implications
Good Advice is Key
Would you like to explore how you can use an employee health benefit plan as a compensation tool?
Review your options with one of our licensed advisors on the phone or in-person or contact us for a comparison quote.