IMPORTANCE OF AN EMPLOYEE HEALTH BENEFITS PLAN FOR MEDIUM-SIZED BUSINESSES

A robust health benefits plan is a cornerstone of support for medium-sized businesses, offering valuable advantages for both employers and employees alike.

Medium-sized businesses, ranging between 50 and 250 employees, play a significant role in driving the economy, yet they often receive less attention compared to small and large enterprises. These businesses encounter unique challenges and opportunities distinct from those of their smaller or larger counterparts.

Medium-sized companies in Canada should provide employee health benefits across their entire workforce for several reasons:

• Attracting and Retaining Talent: Offering comprehensive employee health benefits is essential for attracting top talent and retaining valuable employees. In a competitive job market, candidates often consider the quality of benefits packages when evaluating job opportunities. By providing health benefits, medium-sized companies can attract and retain skilled professionals.

• Competitive Advantage: Offering a comprehensive employee health benefits package can give medium-sized companies a competitive edge in the marketplace. In industries where talent is in high demand, having attractive benefits packages can differentiate a company from its competitors and help it attract top talent.

• Employee Wellbeing and Engagement: Access to health benefits, such as medical, dental, and vision care, contributes to employee well-being and satisfaction. It demonstrates that the company cares about the health and welfare of its employees and their families, fostering a positive work environment and enhancing morale. Employees who feel supported and valued are more likely to be satisfied with their jobs and more engaged in their work, leading to increased productivity and morale within the organization.

• Social Responsibility: Offering health benefits to employees reflects a company’s dedication to social responsibility and employee welfare. This helps promote fairness and equity within the organization, fostering a sense of inclusivity and cohesion among employees.

• Business Reputation and Brand Image: Providing health benefits reflects positively on a company’s reputation and brand image. It sends a message to employees, customers, and the broader community that the company is committed to supporting its workforce and prioritizing employee well-being. This can enhance the company’s reputation as an employer of choice and contribute to its overall brand equity.

• Proactively Manage Employee Wellness: While offering a health benefits plan involves upfront costs for employers, it can ultimately lead to cost savings in the long run. Investing in employee health benefits can help mitigate various risks for medium-sized companies. For instance, providing preventive care and wellness programs can help reduce the incidence of costly medical treatments and absenteeism due to illness. This proactive approach to health management helps contain healthcare costs and minimizes potential disruptions to business operations.

Adjust Your Plan to your Business Strategy

• Choose the Right Provider

Select a provider specializing in employee health benefits, prioritizing three key experiences: seamless access for employees, simplified administration for your team, and clear value for your organization. Beware of providers offering scaled-down versions of larger company plans; opt for tailored solutions from specialized providers such as GroupHEALTH that can create a custom plan for a medium-sized business.

• Choose Flexibility and Innovation

Build an employee health benefits plan tailored to your workforce’s unique needs, avoiding one-size-fits-all approaches. Look for flexibility, allowing employees to allocate benefits according to their individual preferences. Consider incorporating health spending accounts to cover co-pays or additional benefits not included in standard plans.

• Consider Administrative Services Only (ASO)

Explore Administrative Services Only (ASO) arrangements, which can enable self-insurance with a chosen provider administering the plan. While traditionally favored by large corporations, ASO arrangements increasingly benefit medium-sized companies with predictable claims history. While bearing greater risk, ASO arrangements offer potential financial rewards and hybrid options for added security.

Good advice is key

Is your health benefits plan to support the goals of your medium-sized business? Do you want more out of your employee benefits plan? Review your options with one of our licensed advisors on the phone or contact us for a comparison quote.

Whether you’re looking for extended health and dental coverage, disability coverage, or life and critical illness coverage, GroupHEALTH has affordable benefits packages that work as hard as you do.