Q - 1. Can you discuss how benefits can be a retention tool for top talent?
A: First and foremost, the pool for talent in the Vancouver Job Market is quite small, especially in the technology industry. Because of this, companies have become increasingly competitive with their compensation and benefit packages. Therefore, in order to attract and keep top employees, corporations need to be offering comprehensive and generous benefit packages.
In regards to retention, there are insurance coverages that employers can offer that will help to keep employees more loyal. For example, with a benefit such as Life Insurance, standard coverage is typically $25,000 or 1-2x Salary. By enhancing this benefit to 3, 4, 5x Salary, an employee will be less inclined to pay for this coverage personally and hence will be find it more difficult to leave their job if the new opportunity doesn’t have coverage that matches to this extent.
In addition, including insurance coverages such as Short and Long Term Disability and Critical Illness Insurance which are expensive and hard to get personally will also help to keep employees loyal. This is because as years go by it will be increasingly difficult for them to give up these benefits, hence keeping them loyal to their employer.
(On a side note, we always recommend that employees get their own personal coverage in place so they are never relying on their employer for insurance benefits and end up unable to leave their job).
Q – 2. Many business owners think that their business is too small to offer benefits and that it could be expensive. Is this true?
A: This is a common misconception amongst most business owners that I speak to and it is not true. Benefits are extremely flexible so it is easy for a business owner to design a plan that fits within their budget. Even starting with a basic plan that only includes health coverage or only includes dental is something. The perceived value of a benefits plan to an employee is SO MUCH higher than the actual cost for employers.
For example, the cost for a basic health and dental plan is about $80 for a single employee. If you share this cost 50/50, it would be $40/month for the company and it is also a tax deduction for the business.
Furthermore, many companies are offering Health Spending Accounts which gives an employee an amount of money that they can spend on their health and dental needs. Even starting with $250 - $500 a year for a Health Spending Account is a great start for any business.
Q – 3. Can you please tell us about KEY MAN (PERSON) INSURANCE?
A: Key man insurance protects the business against the loss (death or disability) of a key employee. This could be any employee where the business could potentially suffer a significant financial impact if that employee is no longer able to work. This could be the CEO, the top Sales person, VP of Sales, the Founder(s) of a start-up, Chief Technology Officer, etc. There could also be multiple key employees in an organization that the business would want to protect itself against losing.
With Key Man Insurance, the corporation is the owner and payor of the policy. Should something happen to the employee who is insured, then the corporation would be the beneficiary of the funds from the insurance policy.
If you have any questions related to benefits, please contact me:
Desirée 778 245 2262