How Group Benefits Aid Recruitment and Retention
In part 2 of the Employee Rewards and Compensation series, we’ll look at the importance of employer-sponsored benefit plans.
Did you know that nearly half of Canadian workers say benefits play a key role in their decision to stay with an organization?1 They also say they would choose benefits over a salary increase,2 so companies that don’t offer benefits could lose out when competing for top talent.
In addition, surveys show that while group benefit programs can help companies attract and retain top talent, 62% of small and mid-size business owners admit their benefit programs don’t completely satisfy their HR and business objectives.1 Since benefit programs can average 14.3% of your total compensation costs,3 it’s important to ask yourself a few questions (perhaps in consultation with experts in the field) to help ensure your benefits program effectively meets the goals you’ve set for your program, including:
- What benefits can my business afford?
- What benefits will best attract and retain the kind of employees my business needs?
- What business objectives will benefits help me achieve?
Here are some more tips for businesses looking
to start offering group benefits:
- You’re never too small: While plans can cover as few as two people, the value of a group benefits program increases dramatically with five or more employees.
- Consult with the experts: You should partner closely with a benefits advisor to learn about your options, the costs, and key features of an effective group benefits program. Select a company you trust to support you.
- Don’t set it and forget it: Benefit programs can be fluid so you should revisit your program regularly to make sure it continues to meet your needs and remains competitive.
- Track the numbers: Look at key indicators such as turnover, absenteeism, employee feedback, and productivity to see how well your program is performing. Your advisor should provide you with the information to make changes as needed to improve performance.
- Consider a tiered approach: Some benefit plans will allow you to extend coverage and options, which could become a perk/ incentive for longstanding employees or top performers.
As with any compensation program, be sure to consult with the experts before you start, to understand all legal, tax, and compliance implications of the program you plan to implement.
How Group Benefits Aid Recruitment and Retention (PDF version)
1. PROFITguide.com., Grow Your Business with Group Benefits, 2014
2. Sanofi, The Sanofi-Aventis Healthcare Survey 2011, 2011
3. ADP, Can You Afford the Status Quo?, 2012
The information contained in this HR Tip Sheet is summary in nature and is intended to provide general guidance. It should not be viewed as a replacement for legal or professional advice.
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