Employee Group Benefits Plan: What you can gain
Group benefits are an investment in the well-being of your company and employees. Medical aids and other group benefits can show your employees that you value them, plus it is a way to attract and retain talent. While cash compensation is vital to your employees, competitive benefits for retirement, dental, and medical insurance can help keep employees engaged and healthy. Group benefits are essential to building employee satisfaction, boosting morale, and can help support the physical and mental health of employees (which is important especially now during the Covid-19 epidemic), as well as the financial needs of your organization and employees. These plans may feature benefits such as healthcare, dental care, disability, and employee and family support.
Benefits of employee group benefits plans
A group benefits plan is an integral part of your company’s employee retention strategy. Employees may struggle with mental health concerns, serious illnesses, and physical ailments, or finding the right work-life balance. Flexible and comprehensive benefits plans can be modified to accommodate your company’s unique requirements.
Improved ability to attract and retain talent
While provincial health plans offer substantial coverage, group benefits plans are an excellent - and often necessary - supplemental tool. It helps with filling in potential gaps for your employees, which makes group benefits plans even more appealing, while also helping you stand out and retain quality staff.
Comprehensive protection for your most valuable employees
The health and happiness of your employees are crucial and have an impact on productivity and even the company’s bottom line. Ensuring the well-being of your staff may help reduce unforeseen expenses related to long-term illnesses and on-site injuries. Turnover is costly, and it’s difficult for small- and medium-sized businesses to assimilate these expenses. When your employees resign, you need to find suitable replacements. Posting job advertisements, interviewing applicants, and contacting references can be time-consuming and cause diminished productivity. When employees resign, their colleagues are required to fill in for them. Even after finding permanent replacements, it will take some time to properly train them. The cost of turnover is estimated to be equal to a year’s salary of the departed employee, depending on the employee’s job level and difficulty finding a replacement. Retaining your current staff members can reduce your expenses and maintain workplace productivity. Providing group insurance is a key method for retaining staff to prevent them from leaving.
Higher employee morale
When your employees feel valued, they are more likely to be happier, content, engaged, and dedicated. Recent research studies reveal the following statistics:
- 72% of employees said having more work benefits would increase job satisfaction
- Dissatisfaction stems from employees’ need for additional benefits (57%), the desire for benefits they currently don’t have (24%), benefits they can’t use (22%) and benefits they feel pressured not to use (8%)
- Of the specific job features that provide job satisfaction, job security ranks highest at 86%, retirement benefits at 85%, paid vacation at 83%, and health insurance at 82%
- Highly engaged teams show a 21% greater profitability. Teams who score in the top 20% in engagement realize a 41% reduction in absenteeism, and 59% less turnover
- 69% of employees say they would work harder if they were better appreciated
- Companies with highly engaged workforce also scored 17% higher on productivity
- 81% of employers that offer benefits agree their company’s benefits offerings increase employee satisfaction
Offering group benefits plans is a way of giving back to your employees, which can then develop a sense of company loyalty and drive. This can help reduce turnover and enhance the quality of your employees’ work performance.
Employee group benefits represent substantial non-salary costs to an employer. To help our clients access affordable group plan benefits, PSI offers options based on the pricing advantage of multiple employer memberships. Contact us today for more information on choosing the right employee group benefits plan for your business.