Employee benefits are an essential component of competitive compensation packages. Also known as workplace or group health benefits, employers offer these packages to staff in addition to their salary and government benefits (such as the Canada Pension Plan or CPP) which make up an employee’s overall compensation.
At Gifford Carr, we understand the value of leveraging competitive compensation packages as part of a successful strategy to retain and attract top talent to your company.
Offering an employee benefits plan is an investment in your workforce and your business. It demonstrates a commitment to employee mental, emotional, and physical well-being, which can provide advantages such as improved morale and increased productivity.
What are employee benefits?
In Canada, employees often have existing provincial or territorial healthcare plans (such as OHIP) that offer standard coverage for essential medical care, like emergency room visits or in-hospital laboratory diagnostics. However, for many Canadians, government-funded healthcare plans do not provide sufficient coverage for medical needs, such as prescription drugs, paramedical coverage, and more. This is where employee benefits help to bridge the gap between government plans and out-of-pocket expenses.
Employee benefits plans extend beyond medical expenses and ensure the diverse needs of employees receive greater support. A comprehensive employee benefits plan can include medical, dental, vision, and life insurance coverage, but employers can offer workers benefit enhancements they elect to participate in, such as additional life insurance or disability coverage. These workplace benefits assist hardworking employees with coverage for out-of-pocket expenses not covered by government health insurance plans.
FAQ
Do all employees have to enroll in the plan?
Yes, active employees who qualify for coverage (meaning they have passed the probationary period) must participate. However, in some cases, exceptions can be made for employees who can provide proof of coverage through another plan or provider. For example, if an employee is enrolled in a benefits plan through their spouse, they can elect not to participate in their employer’s plan by providing proof of coverage elsewhere.
Who qualifies for coverage through an employee benefit plan?
An employee benefit plan covers active employees. It can also extend to their spouses and dependents (such as children.) When registering employees for the employee benefits plan, be sure to ask if they are electing to participate as a single individual or as a family.
What is the minimum cost to sponsor an employee benefits plan?
The cost of employee benefits varies on several unique factors, such as the amount and types of coverage offered to employees. To provide an accurate quote, connect with a Gifford Carr advisor who can determine your needs and the coverage that best suits them.
What happens to the benefits when an employee leaves their job?
Upon retirement or termination of employment, it is customary for the coverage provided through your workplace to end. We advise Human Resources (HR) representatives to encourage employees to promptly notify HR upon deciding on retirement or leaving their current position. This proactive step will allow discussions regarding the possibility of porting their plan to a new workplace or individual plan, retaining or substituting coverage options, such as life insurance, accident insurance, or critical illness insurance to occur.
