Shawnee Love   •  
November 8, 2012

Luxury benefit packages are a dieing breed. A recent poll by Ipsos Reid indicated that 36% of Canadians have gone without healthcare treatment due to insufficient coverage!

Even though many companies are still offering mid size or compact versions of benefits, they are still seeing a 10-15% increase in costs at renewal time.  Not only is that hard to swallow, but it is causing many employers to take 2nd and 3rd looks at why they are offering benefits in the first place.

Costs are huge, employees often are unhappy with the lack of flexibility, restrictions and limits of their benefits, and as employees may not be getting the care they need anyway.

So why are you offering benefits?

IF the company can afford benefits AND the benefits program is well designed, here are my top reasons for offering employee benefits:

1. Attracting Candidates:  Benefits can help attract candidates because savvy employees are well aware of how a good benefits package can enhance their total compensation.  As such, if you offer a better package than the one they have, it can be a serious incentive.
2. Retaining Candidates:  A good benefits program fosters loyalty because employees value the plan. They may also see a benefits plan as proof their employer cares for them, their health and wellness and their ability to build long term wealth (especially if a rrsp or pension plan is offered).
3. Peace of Mind:  Some owners gain comfort knowing their employees and families are protected when they need it.
4. Wellness:  Employees who take care of their health with preventative medical and dental check ups are healthier and thus  have better attendance, higher productivity, and more positive attitudes.

The key to unlocking these four reasons to offer benefits is ensuring the benefit package is a good one as viewed by your employees.  More on designing a benefits program that works next week.

In the meantime, please help us find out how important benefits are to employees by participating in our poll.