Investing in tailored, well-designed group benefit plans has a significant impact on job satisfaction, employee retention, and long-term company performance.
Social consciousness and common business sense mean inclusive workplaces will thrive. Generic plans offer some advantages; however, tailored plans align more closely with the needs of modern employees.
Group plans provide a variety of coverages, including health, dental, disability, critical illness, and life insurance, for immediate benefits. Retirement and savings plans ensure your employees’ financial security in the long run, meaning they get more engaged the longer they are part of your team.
Here are some examples of how to customize collaborative group plans.
Options for Group Retirement Plans
- Flexible Contribution Rates: Flexibility in contribution rates can be an attractive feature.
- Variety of Investment Options: Diversifying the investment options in your group retirement plan can accommodate differing risk tolerances and investment strategies. Options can be “Target Date” or self-managed.
- Education and Counseling Services: Educated employees will make informed decisions about their retirement funds. Left to themselves, employees can be quickly confused and frustrated.
- A vesting schedule, which gradually gives employees ownership of employer contributions, is a powerful retention tool.
- Loans and Hardship Withdrawals: There are various options for employee vs. employer contributions.
- Differing Investment Options: RRSP, TFSA, and Spousal Contributions.
- Match contributions are based on time with the company, occupation class, and company performance.
Options for Health and Dental Plans
- Flexible Coverage Choices: This may include options for varying levels of dental care, vision care, prescription drugs, and paramedical services.
- Cost Sharing: It is best for employees to pay for certain options due to the tax implications. For the plan sponsor, the other costs are a tax write-off.
- Health Spending Accounts (HSAs): They provide flexibility and control over health and dental benefits. They are an excellent way to supplement a traditional benefits package and provide additional personalization.
- Integrating wellness programs into your group health and dental plan can result in healthier, happier employees and potentially lower health-related costs in the long run. The carrier you choose should have this as part of their standard offering.
- Online Tools: Many insurance providers offer online tools for encouraging and rewarding healthier lifestyles.
- Contract Relationships: Some industries work mostly with subcontractors, for example, hair salons, massage therapy clinics, doctors’ offices, etc. Contractors may have to pay high prices for inadequate personal coverage. Grouping them can provide better value for coverages without medical underwriting.
In conclusion, a tailored group benefits plan is a strategic tool for boosting employee retention. By providing a benefits package that respects and addresses the individual needs of your employees, you create a work environment where employees feel valued and secure. The more aligned the team feels with the employer, the more they will push to attain the long-term goals of the organization.
