Did you know that according to a 2015 benchmarking survey conducted by The Conference Board of Canada, the average cost of providing benefits for employees is $8,330 per full-time employee? Stats like that can make a potential client turn and run the other way, so it’s always good to remind them that the cost of employee benefits plans vary widely and depends on the demographics of the company and the plan design and benefits selected.
The amount also varies by industry and the goals of the benefits program. For example, an employer that views benefits as a “cost of doing business” will have a much different budget than an employer that wants to make his employees feel special and drive appreciation of the benefit spend.
Here is a simple calculator to use with new clients to see if their budget expectations are in line with their benefits goals:
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1) Overall payroll amount: |
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2) % of payroll you would consider spending on benefits: |
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Total budget = Line 1 x (Line 2/100) |
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Once you have an understanding of how much they are want to spend, you can use this information in conjunction with their employee needs and objectives to help them understand their options and readjust their expectations, if necessary. Highlighting some of the key features of myFlex – stability, flexibility and simplicity can help to support you in these conversations.
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