Difference Between Small vs Medium Sized Business Group Benefits
Small and medium-sized businesses’ group benefits in Canada can differ in several ways, primarily due to differences in scale, budget and organizational structure. We recently wrote a great resource all about Small Business Group Benefits and now it’s time to shine a light on how medium size businesses differ.
Here’s a breakdown of some key differences between small and medium sized companies and the benefits landscape:
Size and Scale:
Small businesses typically have fewer employees (often defined as fewer than 50 employees) compared to medium-sized businesses (which may have up to a few hundred employees). Because of their smaller size, small businesses may have less negotiating power with insurance providers and may offer more standardized benefits packages.
Medium-sized businesses, on the other hand, have a larger workforce and may have more flexibility and leverage when creating customized group benefits packages. They are able to tailor benefits offerings to meet the diverse needs of their employees, such as offering different tiers of coverage, flex plans or additional perks.
Budget and Cost Considerations:
Small businesses often have tighter budgets and may need to prioritize which benefits to offer based on cost-effectiveness. They may opt for more basic benefits packages with essential coverage to ensure affordability.
Medium-sized businesses typically have more financial resources available and may be able to invest in more comprehensive benefits packages. They may offer a wider range of benefits, such as enhanced health and dental coverage, retirement savings plans, and in depth wellness programs. These additions are great for increasing employee productivity in the office.
Compliance and Administration:
Both small and medium-sized businesses are subject to regulatory requirements regarding employee benefits in Canada, such as those outlined by the Canada Revenue Agency (CRA) and provincial/territorial health insurance plans. However, medium-sized businesses may have dedicated HR departments or personnel to manage benefits administration, whereas small businesses may handle these tasks internally or rely on external assistance.
If you’re reading this and are a small business who is currently doing all HR services in-house, but are wanting to change that, reach out to us! We provide fantastic HR services that will help you free up your time and increase your HR support.
Employee Preferences and Demographics:
Benefits preferences and demographics of employees may vary between small and medium-sized businesses. Small businesses may have a more close-knit team with similar needs and preferences, while medium-sized businesses may have a more diverse workforce with varying ages, lifestyles, and priorities.
If you’re a medium-sized business that has a group of diverse employees and needs, tailoring your benefits package to everyone is one way to retain employees.
Navy & Sage Benefits Can Help!
In summary, while small and medium-sized businesses in Canada both offer group benefits to their employees, there are notable differences in terms of scale, budget, customization, compliance, and employee demographics.
Understanding these differences can help businesses design and implement benefits packages that meet the needs of their employees while remaining cost-effective and compliant with regulatory requirements.
Reach out to Navy & Sage Benefits today to get started with customizing a plan that works for your business and your employees.
