Offering a competitive salary is just the beginning. Something else companies need to consider when attracting and retaining talent is their benefits package.
Some employee benefits are mandatory in Canada and therefore must be included in any package being offered by an employer. However, a competitive compensation package will likely also include various perks and/or voluntary benefits, such as fitness plans, mental health care, and flexible hours and work arrangements.
In this article, we’ll dive into the types of insurance benefits for employees and how you can ensure you’re choosing the right benefits for your business.
Overview of Common Employee Benefits in Canada
As a business owner, it’s vital to have a solid understanding of the common employee benefits in Canada. Some of them include:
Health Coverage
Health benefits, such as healthcare insurance, are one of the most important employee benefits to include in your overall compensation package.
This includes factoring in possible medical conditions, physical disabilities, and family planning decisions that your employees might have. Some companies like to offer extended health benefits such as prescription drug coverage and dental insurance coverage.
Research various types of health insurance plans, eye exams, HMOs, and high-deductible health plans to determine what’s right for your business by calculating the expenses accurately, including the cost of premiums and deductibles.
Disability Insurance
This type of health insurance compensates anywhere between 60% and 85% of your employees’ regular income up to a maximum amount within a specified time if they are unable to work temporarily or are permanently disabled due to an illness or injury.
This may be something to consider offering if your employees work in hazardous conditions, such as trades and construction industries.
Paid Time Off
Paid time off (PTO) is a major factor for most people. It includes parental and maternity leave, personal leave, holiday leave, sick leave, and medical leave with pay. Canadian employees also receive paid leave for victims of family violence.
Determine the right balance between these leave credits that align with your business’s values and culture while ensuring you’re still promoting work-life balance.
Retirement Pension Benefit
The Canada Pension Plan (CPP) is a taxable benefit and contributory savings plan for all Canadian employees. This replaces part of their income when they retire.
Both employers and employees contribute to this statutory benefit, with the contributory period beginning when an employee reaches age 18.
Employment Insurance
At any job in Canada, employers are expected to provide employment insurance.
This is a type of temporary income support provided to unemployed workers while they look for jobs or are in the process of upskilling. This type of insurance can also be extended to employees who are unable to work due to an illness, as well as those caring for young children or a family member with a life-threatening illness.
Individuals receiving employment insurance contributions typically receive 55% of their earnings up to a maximum of $650 per week.
Choosing the Best Insurance Benefits For Employees
Many of the statutory benefits we mentioned remain consistent across the country. However, additional benefits vary, and choosing the right ones for your business can be challenging. Here are some tips to follow:
Assess Employee Needs
Begin by understanding your employees’ unique needs and preferences. Consider conducting surveys or focus groups to gather insights. What are their priorities when it comes to insurance coverage? Are there specific health concerns, family situations, or financial goals that need to be addressed?
Not only will this save you time and money by focusing on what’s important, but it also ensures you’re aligned with your company’s values, mission, and vision.
Weigh the Costs
Staying competitive in any industry is challenging, which is why businesses like to offer an attractive compensation package to motivate employees.
However, it’s equally important to keep your budget in mind and the associated costs beyond providing mandatory benefits. If you’re leaning towards multiple insurance plans, make sure you’re calculating them accurately.
Compare Providers and Plans
Research and compare insurance providers and their plans. Look at factors like coverage, premiums, deductibles, and provider networks. Evaluate the reputation of the insurance company and its history of claims processing.
Consult an Insurance Professional at KASE
Businesses that offer comprehensive insurance benefits for employees are more likely to build a stronger team and gain a competitive edge. They also help protect your team (and yourself) from potential risks or lawsuits in case of unforeseen events.
KASE Insurance has worked with clients across numerous industries to create customized benefits packages that suit their diverse needs. Our team of insurance brokers understands the unique challenges employers face in finding the perfect employee benefits plan, and we’re here to simplify that process.
Get in touch with a KASE Insurance broker today to learn more.