The lack of labor affects the companies. More than ever, it is difficult to find qualified, motivated and efficient employees who will contribute to the growth of the organization.
Knowing that they have the upper end of the stick, employees are increasingly selective when applying for jobs.
It’s not just a matter of pay anymore. In recent years, working conditions have become increasingly important in the eyes of employees, including the issue of insurance.
RAMQ offers very limited coverage in Quebec, pushing families to seek employers that offer group insurance with more comprehensive coverage.
Does your company currently offer group insurance? If the answer is no, you might change your mind at the end of this article…
What is group insurance?
In Quebec, everyone is covered by the basic public plan (RAMQ), which offers basic benefits for drugs and certain treatments. However, this insurance is very limited.
This is why private insurance companies offer additional protection schemes, called group insurance, which are offered through employers.
A group insurance policy is therefore a set of protections that go beyond RAMQ’s, which generally includes drug insurance, dental insurance and much more.
Employees who have access to group insurance through their employer must take it out. The scope of the plan varies according to the coverage chosen by the company.
Why are employees increasingly looking for an employer that offers group insurance?
Since the pandemic, more and more families have understood the importance of having good protections in case of incapacity, illness, etc.
Since the public system is more than imperfect, group insurance has never been so attractive.
Employees now know that in addition to wages, insurance is very important and is a key factor in sound financial health.
For example, the RAMQ does not cover dental care, which can be very expensive. Most group insurance companies offer very attractive reimbursements at this level.
For employees, an employer who offers group insurance shows that he cares about the well-being of his employees. It is also an important added value, both economically and socially.
What are the benefits of setting up group insurance for the business?
What are the concrete advantages as an employer of setting up group insurance for a company?
- You increase your job satisfaction
- You improve your retention rate
- You attract more potential candidates
- You offer better working conditions
- You increase your reputation as an employer
- You can take advantage of tax benefits
In short, setting up group insurance should be seen as an investment, not an expense. The return on your investment can be seen both socially in your organization and financially in relation to performance.
What protections are available to employees?
What protections are included in most group plans offered to employees?
It depends entirely on what the employer has negotiated with the insurance company. Here is an overview of commonly selected protections:
- Dental care
- Vision care
- Life insurance
- Disability insurance
- Serious illnesses
- Hospital costs
- Travel insurance
- Massage therapy
- And more !
Insurance companies generally offer different levels of insurance, for example (gold, silver, bronze), at different costs. Employees can therefore choose the level of protection according to their budget.
Who should pay for group insurance, the employer or the employees?
Who is responsible for the collective insurance bill in a company?
Should the employer pay, or the employee?
Actually, it depends. The premium can be paid 100% by the employee, 100% paid by the employer or shared between the two.
The employer decides who pays the premium. As far as payment is concerned, it is often an automatic deduction in the employee’s salary when it is his responsibility. So it’s a simple and effective way to manage everything.
How much does group insurance cost?
How much does group insurance cost for business?
Of course, it depends on many factors, and the premiums vary from company to company. The more your company operates in a high-risk industry, the higher the premium for your group is likely to be.
Among the factors that have the greatest influence on the cost of group insurance are, in particular:
- Type of company/industry
- Your employees’ profile
- General level of risk for your group
- Number of employees in the company
- The salary level to be covered
- The selected protection types
- The group’s complaint history
- Coinsurance factors
- And more !
Talk to a licensed financial security advisor to get a group insurance quote for your business.
What are the steps to set up group insurance in your company?
Are you considering setting up group insurance in your company, but don’t know where to start?
- Start by finding a group insurance advisor
- Present your goals and needs
- Compare prices and offers from insurance companies
- Make a decision and make an implementation plan
- Let your adviser take care of the internal underwriting
Offering group insurance to your employees can be an excellent investment. It might be worth looking into!