Part 2 of 3
Last week was a crazy one for me. Seven client appointments in 3 days, plus a morning away from the office and a holiday Monday had me playing catch up all week. As a result, I wasn’t able to post to the Vlog until Saturday and didn’t get a new post written here at all. Hopefully this week I can get back into a regular rhythm of things. Not that I’m complaining, if I don’t post for a few days it usually means I’m working directly with clients, and that’s what it’s all about right?
For the past couple of weeks, I’ve been working through a series focused on my standard The Three Question Fact Find. Every new client relationship starts with the same three questions. If you’re just finding this you should probably take a minute to catch up by walking through those questions and the accompanying videos here:
Now we turn the focus off the individual business owner and shine the spotlight on your second greatest asset, the people who work for you.
Question Two – Do you have a plan to protect and reward your most loyal employees?
As a small business owner your greatest asset is your own ability to work and earn an income. We dealt with that last time. Your second greatest asset is that ability to work and be productive coming from your team.
According to Stats Canada, sick days cost the Canadian economy $16.6B per year in 2013. Companies that offer a comprehensive health plan including prescription drugs, dental, and disability insurance can expect the cost of illness to be significantly offset.
However, the greatest advantage of offering a health plan isn’t from the costs directly associated with illnesses. It is in the goodwill and loyalty felt by employees. According to Glassdoor.com 3 out of 5 employees say that the quality of a benefits package figured significantly in their decision to accept a job offer and their ongoing loyalty to the company. And 92% of employees reported that, all other thing being equal, they would switch employers for a better benefits package.
Clearly benefits are important to employees. But the financial incentive to employers doesn’t end there. The cost of the average benefits package is 3-6% of payroll but since premiums paid are fully tax deductible, the actual out of pocket expense for a company is approximately 15% less than giving employees a comparable raise.
And that’s just a health plan. Couple that with a retirement planning package like a Group RRSP or pension program and the loyal factor increases again. Coming from an employer nothing says, “I appreciate you and the work you do,” more than comprehensive group health, disability and retirement plan.
So, if I could show you a way to significantly increase employee loyalty and engagement without incurring an unmanageable expense, would that be a conversation worth having?
For more information or help with your financial plan contact: firstname.lastname@example.org or simply leave a comment below.