Despite what you may think, no business is too small to be the most sought-after workplace even for the cream of the crop. Benefits offered to employees often play a decisive role when people choose the company to work for next and, of course, benefits are crucial for retaining highly valuable members of the crew.
While more and more companies with less than 50 employees opt for group coverage of their workforce, there are still those who are reluctant to do so, mainly because they mistakenly believe, all kinds of benefits are reserved for big players only. If you fit the description or on the contrary, plan to cover your growing team but just do not know where to start, read on to learn why you should consider group health insurance.
What is group health insurance?
Before turning to ‘why’, let’s take a closer look at what group health insurance is. At the core, it is a plan that provides coverage to a group of employees (or a group of members in the case of an organisation) at a reduced cost since the insurer’s risk is shared between more policyholders.
While such plans come in a myriad of forms with available options, as well as terms and conditions varying greatly from one insurance company to another, there are several elements they all have in common.
First of all, they can’t be purchased by individuals (well, it was a no-brainer). Secondly, in the majority of cases, group health insurance plans seek at least a 70% participation rate, leaving space for each employee to decide whether to enrol or not. Finally, those plans provide the opportunity of adding family members or other dependents, of course, at extra cost.
Advantages of group health insurance
At first glance, group plans are designed to bring more value and benefits to employees but if you look into the matter, you will realise that employers get even more advantages. Did you know that group benefits for small businesses are tax-free in all Canadian provinces except Quebec? Oh yes, here we get a kind of win-win situation where employees receive access and coverage for health and dental plans while the employer enjoys tax-deductible premiums for the benefits.
Sounds really great but the best thing is there’s much more to it. Here are some of the advantages of group health plans for the owners of small companies:
Retention of employees
It’s no secret, every employee wants to feel that their efforts and all the hard work are appreciated. Naturally, there are many ways to show your employees they are highly valued including adequate salary, birthday presents, or a new coffee machine at the office that makes really delicious beverages. But, believe it or not, nothing screams appreciation as health insurance.
Ability to hire the best
Employees are those who drive the company’s growth and if you want to attract the best in their class, you have to offer them something your competitors do not. Stay ahead of your ‘rivals’ and be the first to incorporate group health insurance into your business, boosting your chances to hire experienced pros able to give your enterprise a new dimension of success.
As a business owner, you know that only a satisfied employee is ready to do their best in order to contribute to the company’s growth. People who struggle with paying bills for medical care, can’t afford much-needed but too expensive drugs or a visit to a dentist will never think of the company because they have a lot of their own problems. On the other hand, a group health plan can become a real game-changer, bringing them confidence in the present and future so they can focus on what really matters – their job.
Confidence in the future is not just a nice-sounding phrase. People can’t predict accidents or serious illnesses but they can prepare even for the most dramatic situations. With group health insurance, your employees can be rest assured that they will get coverage of many important medical costs including extended hospital stays, a wide variety of prescription drugs, as well as treatments essential for fast recovery.
Running a business is far from being an easy task, all the more so, as an owner, you are the one responsible not only for revenues but also for the well-being of your employees. Group health insurance brings plenty of benefits not only to people who work for you but also to your company, putting it on the path to success.
Tommy Williamson did his degree in psychology at the University of Edinburgh. He has an ongoing interest in mental health and well-being.
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