With over 100 years of combined experience in the insurance and employee benefits industry, there are a number of common employee benefit plan myths that we see interacting with small business owners. When choosing an employee benefits plan, or upgrading an existing on, be sure you can separate fabrication from the truth!
Here are just a few common employee benefit plan myths to watch out for:
There are limited options for small businesses.
Quite the opposite actually, the options for small businesses are as diverse and flexible as they are for any large employer. You can also take advantage of wholesale buying power through a large buying group, for more details check out the Western Canadian Buying Group! Whether you want to just provide health and dental benefits, or include wellness and healthy living options, a custom benefits plan can be created to suit your unique business.
You need a minimum number of employees to provide benefits.
Not true at all, there is no minimum number. Whether you have one employee or a thousand, you can provide benefits! You can also provide different levels of coverage for employees based on job title, tenure, etc.
Traditional group benefit plans are the best option.
To get more out of your group benefits dollars, you need to understand all of the options available to you. A traditional plan administered by a life insurance company could only return around 60 cents of each premium dollar paid. That means 40% of your premium dollars goes to plan administration costs, which favours the insurer. Health Spending Accounts are a cost-effective way of providing benefits, where the entire premium dollar is paid out in benefits.
There is no such thing as too many employee benefits
Having a large and diverse group benefits package is great incentive for prospective employees. However it is important to balance your group benefits package to not drain company resources. Flexible Benefit Plans allow you to choose which benefits are relevant to your business and workforce. Instead of paying for a large all-inclusive plan, create a custom plan that will attract and retain top employees!
There are many common employee benefit plan myths to watch out for, one of the most common being it is cost-prohibitive for a small business to provide health benefits. Not only can it be very cost-effective, the cost of not offering an attractive benefits package could be top employees being poached by the competition.
To learn more employee benefit plan myths and how to build a successful group health plan, contact the experts at DENT Benefits today!
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.