For small and mid-sized businesses in Saskatchewan, offering group benefits is a balancing act between providing value to employees and managing expenses. Many business owners see benefits as a significant cost, especially during uncertain economic conditions. However, cutting or eliminating benefits can lead to greater long-term expenses.
Instead, businesses should focus on ways to mitigate group benefit costs while maintaining a competitive and meaningful plan for employees. When approached strategically, group benefits remain a vital investment in workforce retention, productivity, and financial stability.
The Role of Group Benefits in Becoming Irresistible to Strong Talent
In today’s job market, employees expect more than just a salary. Benefits packages are often a deciding factor in where top talent chooses to work.
The Cost of Employee Turnover
Replacing an employee can cost as much as 150% of their salary, not to mention the stress on the remaining staff. Employees who feel supported by a strong benefits plan are more likely to stay, reducing turnover costs.
A Competitive Advantage in Hiring
Small and mid-sized businesses compete with larger corporations for skilled workers. While offering higher salaries may not always be feasible, a well-structured benefits plan can set your business apart. Employees are increasingly looking for employers that provide core group benefits, mental wellness support, and flexible benefits. 
Productivity and Morale: The Hidden Benefits of Employee Coverage
Group benefits do more than retain talent; they also contribute to a healthier, more engaged workforce. Here’s how:
- Reduced Absenteeism – Employees with access to healthcare are more likely to address medical concerns early than those without access, preventing prolonged absences.
- Higher Productivity – Employees who feel financially and physically secure are typically better at focusing on their work rather than worrying about unexpected medical expenses.
- Improved Workplace Morale – A benefits plan demonstrates that employers value their teams, fostering a positive and loyal company culture.
The Long-Term Financial Case for Group Benefits
Some businesses hesitate to invest in group benefits due to rising costs. However, viewing benefits as an expense rather than an investment overlooks their financial advantages. Here’s why mitigating group benefit costs is better than reducing or eliminating them altogether:
- Preventative Care Lowers Expenses – Encouraging employees to take advantage of health and wellness programs can help reduce major medical expenses down the line.
- Disability Coverage Mitigates Risk – Without group benefits, an injured or ill employee may take longer to return to work, costing the business in lost productivity.
- Mental Health Support Reduces Workplace Stress – Mental health claims are on the rise, and offering proactive support can help prevent burnout and improve engagement.
Effective Strategies to Mitigate Group Benefit Costs
Balancing affordability with value is key. Fortunately, there are several ways to mitigate group benefit costs while maintaining strong offerings for employees.
Optimize Plan Design
Businesses can work with a group benefits consultant to customize their plan by:
- Adjusting co-pays to control costs while maintaining coverage
- Prioritizing core benefits like health, dental, and disability
- Offering tiered benefits to accommodate different employee needs
Cost-Sharing with Employees
A cost-sharing model, where employees contribute to premiums, allows businesses to maintain quality coverage without shouldering the full financial burden. Many employees are willing to pay a portion of their benefits if it means retaining valuable coverage.
Leverage Pooled Plans
Joining a benefits pool with other businesses can mitigate group benefit costs by reducing premium volatility and spreading risk across a larger group. This is particularly beneficial for small and mid-sized businesses looking for cost stability. A great option for groups with 1 – 50+ employees is Chambers Plan. If this is something you’d like to consider, I can help.
Promote Preventative Health Initiatives
Encouraging employees to use preventative services—such as annual checkups, vaccinations, and mental health programs—can reduce long-term claims and lower insurance costs.
Educate Employees on Cost-Efficient Usage
Employees often overuse benefits or choose higher-cost services when lower-cost alternatives exist. Educating staff on options like using generic prescriptions, visiting in-network providers, or opting for virtual healthcare can help mitigate group benefit costs by reducing unnecessary claims.
Investing in Benefits While Mitigating Costs
Reducing benefits may seem like an easy way to cut costs but the long-term consequences far outweigh the short-term savings. A strong benefits program helps businesses attract and retain employees, boost productivity, and build a positive workplace culture—ultimately contributing to business growth and financial stability.
Instead of viewing group benefits as an expense, businesses should focus on how to mitigate group benefit costs without compromising the value they provide to employees. With smart cost-mitigation strategies in place, small and mid-sized businesses can continue offering valuable benefits while maintaining financial control. Investing in employees is investing in the success of your business, and that is a decision no business can afford to eliminate.
To learn more, please contact us.
Jewelian Berry, B.A., GBA
Benefits Account Manager, Wiegers Financial and Insurance Planning Services Ltd.