The Three Question Fact Find for Business Owners (Part Two)


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:

Question One – Do you have any Debt?  Blog and video.

Question Two – Do you have a plan to sustainably protect and grow your assets?  Blog and video

Question Three – Where do you want your money to go after you die?  Blog and video

Question One for Business Owners – What would happen to you, your business and the people you care about if you didn’t show up to work tomorrow?  Blog and video

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:  lauren.sheil@f55f.com or simply leave a comment below.

Quick Tip #27 – The Value of Planning Ahead


When you own your own business, you want to cover the risks that come with it and build employee loyalty. A financial security advisor can advise you on the right business and tax-efficient strategies, including the right benefits plan, future capital gains considerations and coverage for key individuals.

Quick Tip #23 – The Value of Planning Ahead


When you own your own business, you want to cover the risks that come with it and build employee loyalty. A financial security advisor can advise you on the right business and tax-efficient strategies, including the right benefits plan, future capital gains considerations and coverage for key individuals.

Health Insurance – Better Than Cash


As many of you know, before I started working in the Financial Services industry I spent 19 years as a marketing rep in the Music Industry, the last 12 at the same company.  During that time I never had a health plan.

When I started I was in my late 20s and the lack of access to things like routine dental care and the odd prescription really wasn’t that big of a deal to me.  Health plans weren’t for young health people like me; at least that’s what I thought.  That is until my wife was diagnosed with a chronic condition, requiring approximately $200 per month in prescription drugs.  The resulting financial strain on our new marriage was at times unbearable.  Not to mention the fact that neither of us saw an optometrist or dentist for over ten years.

That’s why, when I became a Financial Advisor I started talking to small business owners about the benefits of providing health insurance for their employees.

healthplan

A recent survey from Manulife Financial shows that while most companies believe they are responsible for the health and wellbeing of their employees fewer than 45% of them actually provide any form of health plan.  Cost is a huge factor but most small business owners just don’t know how to optimise the plan and how with the help of a good accountant they can balance the cost against some very generous tax advantages, for both the employer and the employee.  Not to mention the cost of retraining when employees leave for greener pastures at companies who get it.

For many employees, a well designed benefits plan can be better than cash.  For more information on how best to structure a health plan for your employees feel free to write to me at themeekonomicsproject@gmail.com and click the link here to read more on the Manulife Financial Small Business Research Report.