What are group insurance benefits? In short, they provide supplemental coverage for workers, which is used to take care of expenses that might not be otherwise covered by their government-funded health insurance. This guide reviews the benefits of group insurance for employers as well as those for employees who enroll in coverage.
Table Of Contents
- Advantages for Employers
- Attract Top Talent
- Increase Employee Retention Rate
- Increase Employee Productivity
- Tax Incentives
- Advantages for Employees
- Increase Overall Compensation
- Peace of Mind
- Flexible Plans to Meet Your Needs
Advantages for Employers
The benefits of group insurance for employers include the ability to recruit more experienced workers, prevent employee turnover, and enjoy significant tax advantages. Below are several reasons why you should consider offering a group insurance plan:
1. Attract Top Talent
When a potential new hire receives job offers from multiple companies, they’re going to consider more than merely compensation when deciding who to work with. Offering comprehensive benefits may even allow you to lure top talent for slightly less pay (while still remaining competitive, of course) because group insurance serves as a form of compensation.
2. Increase Employee Retention Rate
In 2018, Canada was ranked fourth in the world for the highest employee turnover rate. Replacing skilled talent is an expensive proposition, so enticing your workers with benefits may pay incredible dividends when you’re not having to hire their replacements.
3. Increase Employee Productivity
A study conducted in 2020 found that there’s a stark difference in workplace productivity when workers have access to preventative care and wellness programs. One of the benefits of group insurance is that it makes your workers more proactive about their health, which can contribute towards improved morale and productivity.
4. Tax Incentives
Offering group benefits to your employees can reduce your tax liabilities and qualify your business for incentives. For some companies, the tax benefits alone may be enough to justify offering a group benefits package that includes comprehensive insurance. The primary way this helps employers is by reducing their workers’ taxable income when medical benefits are paid for with pre-tax income.
Advantages for Employees
What are group insurance benefits for employees? You may wish to work for a company that offers insurance because it makes you happier and healthier in the long run. Many people worry that an unexpected medical expense can bankrupt them and prioritize benefits over hourly wages and salaries.
Below are several reasons why you should consider companies offering group benefits:
5. Increase Overall Compensation
Benefits are considered a form of compensation, and the value of said insurance is proportional to how much money it allows you to save on out-of-pocket medical expenses. Government-funded insurance has limitations and workplace coverage can handle the costs of services that wouldn’t otherwise be factored in. If you or a family member has a medical condition that requires ongoing care, sufficient insurance is therefore a valuable benefit.
6. Peace of Mind
Unexpected medical bills can lead to financial distress and bankruptcy. Even if you’re in perfect health, you never know if you’re going to need medical coverage in the future. Knowing that you’re covered in the event you need care that’s not taken care of by government insurance affords some peace of mind.
7. Flexible Plans to Meet Your Needs
Everyone has different medical needs, which is why having the ability to choose the plan that’s right for you is important. You don’t want to overpay for coverage you’re rarely going to use, but if you anticipate the need for medical care in the future, enrolling in insurance benefits can save you thousands of dollars each year.
How We Can Help
DBA offers cost-effective benefits solutions that ensure employees are happy, healthy and productive. Contact us today to learn more about our comprehensive benefits packages and how they can improve the quality of your workforce.
