Originally Published by: Fine Lifestyles Kingston
Kingston and the surrounding areas are home to some incredible businesses, many of which have less than 10 employees.
These range from a husband and wife team who started their own business to an entrepreneur who began with a small employee base to keep costs under control.
As an employee benefits consultant, I work with businesses of all sizes. When I meet with small business owners to discuss benefits there are three concerns I hear most often: “My business is not big enough to qualify for benefits” or “Benefits would be too costly with so few employees” or “I am (or would need to be) part of an association benefit plan as they are less expensive.” Let’s examine each of these concerns.
“My business is not big enough to qualify for benefits.”
Fortunately, this statement is not accurate. Today, some of the largest insurers will offer businesses with as few as two active employees their own benefits plan, and at three employees there are at least five insurers that offer coverage. In addition, there are minimal plan design restrictions for businesses with less than 10 employees.
“Benefits would be too costly with so few employees.”
Again, this is not necessarily accurate. There are a number of factors involved in the pricing of employee benefits plans, such as the demographics of your company (of which number of employees is just one part of), plan design, claims experience, etc. A consultant that specializes in the employee benefits field can help you design an employee benefits solution that works within your budget.
“I am (or would need to be) part of an association benefits plan as they are less expensive.”
The only pricing factor the association type plan provides is economies of scale — nothing more. The real question is what do you sacrifice for the economies of scale? First, most association plans offer less product flexibility (Plan A, Plan B or Plan C approach) than a tailor made solution your consultant could design for you. Second, the claims experience or utilization of the association plan could be higher than that of your company, causing higher rates than you would get on your own. Finally, and most importantly, most association plans do not provide local representation, which reduces the service you receive when compared with working with a local consultant.
The message here is simple — so long as your company has more than one employee, you can implement an employee benefits plan designed with your goals in mind, is competitively priced, provides you with coverage historically reserved for large business, and that will grow and evolve with you as your company grows. All of this with the added benefit of the service provided by your local, specialized employee benefits consultant.
Benefits Consulting Plus Inc is an independent employee benefits and insurance advisory firm. Bryce Parisotto, CFP, works with local businesses to design and implement tailor-made employee benefits solutions. Shannon Bennett-Parisotto, CHS, has 15 years of specialized knowledge with life, disability and critical illness insurance and works with clients on their personal and corporate insurance planning.
I’d like to learn more about working with Benefits Consulting Plus
t: 613 546-2282