Couple planning employee benefits with charts, tablet and calculator.

Budget Employee Benefits for Small Business

budget-employee-benefits-small-businessFor many small businesses, budgeting for employee benefits may seem like building your own Fabergé egg, representing money and resources that perhaps you feel could be better spent elsewhere.

Instead of viewing it as an expense, if you consider employee benefits for staff retention and employee satisfaction then it can really be viewed as employer benefits; the advantages to your own business can be significant.

Many successful small businesses utilize employee benefits to attract and retain employees, avoiding the pitfalls and significant costs of employee turnover. Most employers experience employee turnover whenever the mental and physical health of their employees begin to decline and there is no support available.

Cost of Employee Turnover

The Sasha Corporation, an HR consulting firm founded in 1984, averaged results of 15 studies and determined that the average cost to turn over an employee making just $8 an hour was $9,444.47 per turnover!

Taking away averages, consider that each position in a company, especially for high-tech companies or regulated positions such as health care, can skyrocket to over $100,000 of specialized training per turnover.1

Budgeting for employee benefits to retain employees can be of significant value to your business.

Employees are less stressed knowing their company is there to take care of them during times of illness, and employees are more likely to show loyalty to your business, thinking of it as their career and not just “a job.”

Employee Benefits Options

If your small business is on a budget, our employee benefits specialist at Benefit Strategies can help you find the right balance. It is possible to offer affordable employee benefits, to help you provide benefits solutions to your employees, while still considering your bottom line.

For instance, a common solution for small businesses on a budget is to cover 50% of the cost for employee benefits, which incidentally, is also tax deductible for your business. Covering half the costs is a great way to let your employees know you want to invest in their well-being, and also has an added benefit of safety; employees are less likely to abuse their plan when they are paying for part of it.

Another option is a health spending account, which is a self-insured private health plan that is available in Canada. These plans allow employees (and employers) to pay into them over time, and be available to employees when they need it for whatever they require, such as glasses, massages, and eye surgery.

Flexible employee benefits plans (aka Flex Benefits) offer customizable packages that can be tailored to the individual needs of an employee. These flex benefits plans are great for employees who have chronic conditions or long-term rehabilitations, or for those who see their own value in benefits such as chiropractic services, massage therapy, or retirement options.

Flex benefits are becoming increasingly popular with small businesses as employees are actively seeking out companies that offer them. For some employees, they are the best employee benefits option as they are tailored to their very specific needs.

Summary

Whatever option you choose for budgeting for employee benefits with your small business, it is highly recommended that you educate your employees about their employee benefits plan and what it offers them and their family.

Hosting an employee meeting to go over their benefits plan is a great opportunity to find out if employees are happy with their plan. Employees who understand the employee benefits you are offering to them will go a long way in their belief that your company is taking care of them and is there to support them.

Budgeting for employee benefits offers a significant overall benefit to your business, no matter how simple or elaborate your benefits package may be. Reducing employee turnover and, therefore, reducing costs of training new hires, as well as providing a piece of mind to your employees, will all help to reduce overall stress while increasing employee satisfaction and productivity.

Take care of your employees and they will take care of you!

1https://smallbusiness.chron.com/average-cost-train-new-employee-44072.html

Have more Questions about budgeting for employee benefits and services?
Call: Daryl or Tammy: 1-780-437-5070
Tweet: @BenefitStratInc
Email: inquiries@benefitstrategiesinc.ca

OSP Fashion Show Poster from Feb 4, 2016

Benefit Strategies Sponsors The OSP Workin’ It Fashion Show

Gold Sponsor – Benefit Strategies sponsors the first annual OSP Workin’ It Fashion Show!
Please invite some friends and join us at OSP’s 1st Annual “Workin’ It” Fashion Show. The show will feature women’s and men’s Spring Fashion. Fun fact: 3 OSP clients will be among the models!
Enjoy some delicious food and wine, meet some great people, and get a fun photo in the Photo Booth.

Where: Lexus of Edmonton, 11204 – 170 Street NW, Edmonton.
When: Thursday, February 4, 2016, 6:00 p.m.
6:00 p.m. – Reception (Wine, Appetizers, Photo Booth).
7:00 p.m. – Fashion Show.
8:00 p.m. – Door Prizes.

Dress Code: Semi-Formal
You will receive a $40.00 charitable donation tax receipt for your ticket purchase.
Tickets: $75.00 each.
10 for $650.00. $100.00 each after January 31.
Each ticket comes with 2 glasses of complimentary wine ($3 cash per glass thereafter).
Benefit Strategies sponsors this fundraiser with all proceeds supporting client services at On-Site Placement.

RSVP on Eventbrite.

OSPinvite

Business owners helping business owners -Capital Ideas

Capital Ideas: Balancing Work, Life and Health

On the subject of balancing work life and health, Benefit Strategies Inc. President Daryl Smith and Capital Ideas asked the Edmonton community of entrepreneurs, “What does employee health and wellness mean at your business?”

Daryl Smith started the conversation off with his take on meeting employee needs:

“Balancing work, life and health for employees is paramount. At Benefit Strategies Inc. we include ergonomics around the office, customizable benefit packages, and healthcare spending accounts to enhance the health and wellness of our workforce. To achieve balance, and boost productivity, employees may take shortened work weeks, work from home, and enjoy flex time. It is important to be mindful of what your employees need: allowing time off for a grandchild’s birthday party, or to escort an aging parent to an appointment demonstrates understanding and support for wellbeing, both inside and outside the office.”

Here’s how other Edmonton entrepreneurs feel about employee health.

Do you want to change the way your workplace views health and wellness? Is it time to introduce a new employee benefits plan that will help boost employee satisfaction and productivity?

Contact our Edmonton employee benefits broker at 1-780-437-5070 or arrange a free Consultation online.

Daryl Smith's Community Question Photo

Capital Ideas, Community Question: What Does Employee Health and Wellness Mean at Your Business?

capital ideas

 

Benefit Strategies President, Daryl Smith, asked The Edmonton Journal’s Capital Ideas Community Question: What does employee health and wellness mean at your business?

There are many pressures in the modern workplace that create challenges for owners and any HR staff. This includes multiple generations of employees with different approaches to the workday, constant connection causing burnout, and people taking care of children or an elderly parent. Benefit Strategies Inc. is curious to hear about the work-life balance and benefits offered at your workplace.