Key to your company’s growth and success is the ability to attract and retain the best employees in your industry. With such a competitive job market, mastering small business talent attraction Ontario benefits is one of the most effective ways of drawing in top-tier candidates.

What should be included in that package? And can you truly afford to offer more than just the basics?

Start with the basics

Whether you’re a small or mid-sized business, it’s easy to become overwhelmed by the number of options available. Why not begin by covering some or all of the following:

• Extended health care – Extend what is covered under Ontario’s health care. Therapists, vision, mobility aids and hospital care costs are some of the things covered under extended health care. Best of all, you can set a fixed annual limit on the amount of coverage provided.
• Dental plan – Coverage for dental visits and certain procedures, up to a fixed yearly amount.
• Prescription plan – Coverage for prescription drugs is a mandatory add-on and a great incentive.
• Critical illness coverage – Often offered as an optional add-on, this is financial aid for those diagnosed with a covered illness.
• Life insurance –Term-life insurance offered at a group rate as a multiple of yearly wages.
• Accidental Death and Dismemberment (AD&D) – Often bundled with life insurance, these benefits cover dire situations.

These are only a few of the many options available to you, but together they represent the most common types of benefits in the market.

How group benefit plans work

When you choose to offer your employees a group benefits plan, you become the group’s sponsor, and hire a group benefits advisor. This advisor will evaluate the group’s needs and select one or several insurance providers who will handle all aspects, from enrollment to claims.

QUICK FACT: In Ontario, an employee who is on leave of absence is entitled to continue their benefits plan.

Flex plans and HCSAs

A flexible (“flex”) benefit plan is one in which your financial contribution is converted into flex dollars or credits, which can then be used by employees to choose the coverage they want.

You may still choose to offer a core plan that employees can then supplement, or let your employees mix-and-match as they choose.

Flex plans allow for employees to supplement their individual coverage by purchasing additional flex credits.

If you cannot afford a traditional plan with full coverage, a flex plan can be an excellent compromise as it allows your employees to pick-and-choose the benefits that are important to them.

A health care spending account, or HCSA, is another interesting option. You deposit a certain amount of money into the account, which employees can use for health expenses not covered by the flex plan. If an item is classified as a medical expense by a private health plan or the Income Tax Act, it can be reimbursed through a health care spending account.

Cost containment measures

Group health insurance plans help employees pay less for coverage than they would on the free market. But that comes at a cost to you.

Paying for your employees to have coverage can get expensive, so how can you limit these costs?

There are several cost containment methods at your disposal. We already mentioned the flex plan and the HCSA. You can also set limits on dental care, vision benefits and extended health care benefits. These can take the form of annual maximums, deductibles and copays. For instance, on the extended Dental plan, you could choose to limit reimbursements to 80% of the cost per visit, up to a maximum of $1000 per year.

You may also want to consider some of the following cost containment strategies:

• Go generic. By encouraging the use of generic drugs whenever possible, you will drastically lower your prescription drug costs.
• Cap dispensing fees. Pharmacies are reimbursed a dispensing fee for every prescription filled. In Ontario, there is a standardized dispensing fee for drugs covered by the Ontario Drug Benefit (ODB) program. If the prescription is not covered by the ODB, the pharmacy can set its own dispensing fee.
• Encourage early intervention. Illnesses can lead to unexpected complications. Early intervention increases the chances that such complications will not arise, and therefore reduce medical costs in the long term.
• Share the costs. Most individuals would rather have some kind of insurance coverage than none. Splitting the costs ensures that your employees still receive coverage, while reducing the costs to you.
• Implement a wellness program. A wellness program comes at a cost, but it is a great way to ensure your employees are healthy and happy. This will lead to fewer health issues arising and therefore fewer claims. Consider offering free yoga and fitness classes, or hiring a nutritionist who will be available to speak with employees.

Wellness programs go beyond the traditional cost containment measures. A creative and effective wellness program can not only benefit employees’ health, but also boost morale and productivity around the office, lowering absenteeism and employee turnover.

The most competitive employers are offering a focus on financial wellness. Financial wellness programs teach employees ways to manage and alleviate their burden, from student loans to first mortgages, and offering services such as financial planning seminars.

You may not be able to afford the most comprehensive group benefits plan on the market, but you can certainly find a plan that fits your current means. By offering a well-balanced plan, you will be creating a workplace that is attractive to current and future employees. Talk to your insurance broker or benefits advisor to find out more about the group benefits available to you and how they can “benefit” your company.