How Small Businesses Can Use Employee Benefits for Recruitment and Retention
As a small business owner, you know that running a small business takes a lot of hard work. The ones that succeed typically do it with one important resource: the right employees. This is why one of the keys to your success is attracting and retaining the right type of talent.
Small Businesses as Employers
Small businesses have been referred to as the “backbone” of the Canadian economy. According to Statistics Canada, in 2017, almost 70% of Canadians who worked in the private sector worked for small businesses (organizations with fewer than 99 employees).
Finding and retaining the best employees is a challenge – so how can employee benefits help you with this monumental task?
Employee Benefits as a Recruitment and Retention Tool
Not so long ago, employee benefits were considered to be just a “perk.” Only huge corporations with hundreds of employees offered them. These days, employee benefits for small businesses have become the norm. As such, sponsoring employee benefits for your small business is essential when competing for top talent.
Employees value group benefits. When comparing multiple job offers, workers say that an attractive employee benefits package is a very important factor in their decision to accept an offer.
Keeping your current employees from seeking out other opportunities is also important. You have invested in training and developing your employees and high turnover is costly- so how can you keep your employees satisfied?
Employees who feel supported by their group benefits plans are less likely to change employers. Providing the right types of benefits is equally important.
What to Look For
From job function to culture, small businesses are unique and have different considerations than medium and large employers.
You want to offer employee benefits, but you are also concerned with how much it will cost. Identifying what that budget is, and securing a benefits plan that fits within your budget is important to protect the sustainability of the plan. You are not alone if you are concerned with cost predictability. Look for a benefits plan that can help provide some cost predictability (e.g. incorporating a Health Spending Account).
If all goes well, you are hoping to grow your business. Your vision is to hire more employees and make your business profitable. As such, it’s important to choose a plan that can grow and adapt along with your company. If you want to expand coverage, add new benefits or change the cost-sharing scenario – is it relatively easy to do?
3. Easy Administration
If you’re like many small business owners, you’re not an expert on employee benefits. You’re concerned with how much time and effort it is going to take to administer your employee benefits plan. Employees (and owners!) in small businesses typically wear many “hats” and fulfil multiple roles – time taken away from other tasks can have a real impact. You should be looking for a benefits provider that can support you in administering the plan, and a plan that is easy to administer. Easy to use, online administration can be a real advantage.
4. Good Benefits
Not all benefits are created equal. As a small business owner, you are looking for every advantage you can get to help recruit and retain the right workers. Offering benefits that are comprehensive and flexible to support your diverse workforce is important. Value adds that give employees a little “extra” can make all the difference. At GroupHEALTH, employees have access to an Employee and Family Assistance Program (EFAP) included in every plan. They also get extras such as hospital cash and coverage for stillborn babies (something not typically included in Dependent Life coverage).
The Benefits to Employee Benefits
Offering a well structured, flexible benefit plan can have many advantages to you as a small business owner. First off, it’s a tax-deductible business expense. Secondly, a benefits plan is an important way to keep employees healthy and happy, which in turn helps them to be more productive. Finally, offering the right employee benefits plan can help recruit top talent, and maximize retention.
Good Advice is Key
As a small business owner, you can leverage your employee benefits plan to attract and retain the best talent. Review your options with one of our licensed Advisors on the phone or in-person, or contact us for a comparison quote.