Adapting group benefits plans for employees

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Small-to-medium-sized businesses are looking to adapt their group benefits plans, and make sure their group insurance answers the needs of employees – and is used by them

CANADA'S SMALL-TO-MEDIUM-SIZED businesses (SMB) make up the lion’s share of the economy, and are looking for ways to attract and retain talent. But how do they know that they are presenting benefits that their employees really need? It’s a conundrum many SMBs are facing in a more competitive employment market. “SMBs are a really important part of the Canadian economy,” says Melody Helleouet, Account Executive at Desjardins Insurance. “Well over 95 percent of businesses in Canada are viewed as SMB.”

Desjardins Insurance offers a wide range of flexible life insurance, health insurance, and retirement savings products and services. It has been providing innovative services to individuals, groups, and businesses for over a century. Desjardins Insurance ensures the financial security of over five million Canadians from offices across the country. It is one of the top life insurance companies in Canada and a member of Desjardins Group, the leading cooperative financial group in Canada.

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“What was once viewed as a basic part of overall total compensation, group benefits, has never been more important than it is today”

Melody Helleouet, Desjardins Insurance

These businesses are facing inflation and rising interest rates, plus the cost of attracting and retaining employees, as well as their own debt costs. Group benefits have become crucial as pressures mount. “Those things are all very real,” Helleouet says. “What was once viewed as a basic part of overall total compensation, group benefits, has never been more important than it is today. It’s a basic expectation nowadays.” According to a study carried out by Desjardins Insurance, more than 62 percent of workers said that they have experienced problems with burnout over the last few years. The same number said that they had thought of quitting just to avoid burnout, with younger workers in particular keenly feeling the effects. They expect their employers to consider their wellness holistically, and to contribute to their overall health. This means a change in how businesses, employees, and insurers look at their plans. What may have worked decades ago might not apply today, and new needs, like a greater emphasis on mental health, are having greater resonance.

Not all SMBs have group insurance plans, but the majority do. Plans offered by SMBs can cover a comprehensive range of benefits, including enhancements such as employee assistance programs, virtual care, non-taxable wellness accounts, and more. However, a number of employers are finding that utilization of benefits is low. That’s why communicating about benefits with employees, and doing so regularly, is important. Having worked as a consultant herself, Helleouet says, “I’ve seen businesses introduce a very new, very generous plan, but they don’t promote it after the initial rollout,” she remembered. “Years go by. Things are forgotten.”

This is where regular communication and education with workers on benefits is key, either through presentations, newsletters, or other means. When employees know what is available to them, they are more likely to get the help that they need, when they need it, before problems escalate. This not only has a positive impact on their health, but also benefits workplace productivity. Businesses can take the pulse of employees by using surveys, for example, and then analyzing the results – and acting on them. In addition to good communication, it’s important to make sure that what is being offered actually meets employees’ needs. So how can an employer find out what they actually want and use?

“We’re proud to provide our plan sponsors and group advisors with really detailed reporting that can be used in such a way to look at these really critical details”

MELODY HELLEOUET, DESJARDINS INSURANCE

Helleouet points out that insurers are in a unique position in that they have access to a large amount of data, as well as tools and technology, to help plan sponsors. Some insurers employ health and wellness online tools to gauge the health of employees. Meanwhile, plan sponsors can survey plan members, seeking feedback. Partnering with their advisor and insurer, businesses can then analyze this feedback to make adjustments or seek new solutions. Helleouet admits that some businesses do not have a lot of time and resources to survey these plans with their employees, but they should make it a priority within their strategic roadmap. One way to bring this to life might be to get an advisor who can craft a roadmap with a plan sponsor to see which benefits are being used and which are not.

Doing a deep dive into how much time and resources are being spent on things like onboarding, participation rates, number of late applicants, etc., can pay dividends as well. “We’re proud to provide our plan sponsors and group advisors with really detailed reporting that can be used to look at these critical details,” she says. As the effects of the labour shortage ripple across the country, “if a business does not have a group benefit plan, it might be behind the eight ball a little bit, and so the time is ripe to find the best plan.” Helleouet likes to work against the perception that “we can’t get a good plan, or maybe we’re not worth the advice or consultation of an expert, because we’re only a few employees,” she said. “That’s not true at all. With such a plan in place, small-to-midsize businesses can really stand out and even show up alongside some of these larger competitors.”

Woman offering group benefits plans for employees

Communicating to workers about benefits is key

The importance of measuring outcomes

The time for action is now

Published 06 Nov 2023

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Small business statistics

Source: Statistics Canada, Analysis on small businesses in Canada, first quarter of 2023, 2023

One to 99 employees

“We’re proud to provide our plan sponsors and group advisors with really detailed reporting that can be used in such a way to look at these really critical details”

Melody Helleouet, Desjardins Insurance

IN Partnership with

Government of Canada, Key Small Business Statistics 2022, 2022

Desjardins Insurance, “Quantitative Study of Overall Wellness” by Ad Hoc Research for Desjardins, December 2022. Survey of 2,000 respondents over 18 years of age, living in Canada, including both members and non-members of Desjardins plans.

Conference Board of Canada, Future-Proofing Investments in Workplace Mental Health, 2022.

How is Canada’s business sector divided up in terms of employee size, according to Statistics Canada?

63%

21%

100 to 500 employees

16%

More than 500 employees

The importance of measuring outcomes

The time for action is now

Source: Desjardins Insurance, Building workplace mental health strategies for a healthy tomorrow, 2023

investigating external resources that could fill gaps in required skills and knowledge regarding how to measure and evaluate workplace mental health

Insufficient organizational capacity and resources and uncertainty about how to measure return and value on investment effectively are two main barriers faced by businesses when it comes to evaluating the effectiveness of their initiatives. To overcome these barriers and collect the right data, organizations can start by:

Five things to keep in mind when measuring outcomes

identifying best practices in data collection, measurement, and evaluation, particularly those used by similar organizations in terms of size, demographics, resources and values

collecting and analyzing data to evaluate whether investments are having the desired impact and adoption rate, and adapting initiatives based on results

taking the time to measure the baseline data of existing initiatives before adding new ones – the right tools might already be in place, so build on those strengths

communicating the results of these evaluations, the recommendations, and approved next steps with all stakeholders

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. Desjardins®, Desjardins Insurance®, and related trademarks are trademarks of the Fédération des caisses Desjardins du Québec used under licence by Desjardins Financial Security Life Assurance Company. 200 Rue des Commandeurs, Lévis QC G6V 6R2 / 1-866-647-5013 desjardinslifeinsurance.com.

The time for action is now

Helleouet pointed out that insurers are in a unique position in that they have access to a large amount of data, as well as tools and technology, to help plan sponsors. Some insurers employ health and wellness online tools to gauge the health of employees. Meanwhile, plan sponsors can survey plan members, seeking feedback. Partnering with their advisor and insurer, businesses can then analyze this feedback to make adjustments or seek new solutions. She admits that some businesses do not have a lot of time and resources to survey these plans with their employees, but they should make it a priority within their strategic roadmap. One way to bring this to life might be to get an advisor who can craft a roadmap with a plan sponsor to see which benefits are being used and which are not.

Conference Board of Canada, Future-Proofing Investments in Workplace Mental Health, 2022.