Satisfied employees are more productive and focused according to Canadian small business owners surveyed for the second annual Manulife Financial Small Business Research Report, and providing health and retirement benefits are a key component to boost employee productivity.
Released Thursday, Manulife Financial’s research report measured the attitudes that more than 1,101 small business owners across the country have towards their employee health benefit and retirement plans, showing that 95% of respondents make the connection between satisfaction and productivity. Providing employee benefits is a key tool in building employee satisfaction.
“Health benefits and retirement plans can have a significant positive impact on the productivity of a small business owner’s company,” says Marc Avaria, vice president, group small business, Manulife Financial. “Investing in your employees will also help attract and retain the best talent, all of which ultimately support the success of the company.”
Employees who receive health benefits are not the only ones who appear to be satisfied. Small business owners say they are equally satisfied with having a company health and retirement benefits plan. In fact, over 7 in 10 small business owners say that having a company health and retirement benefits plan is as much for their own well-being as for their employees’. Furthermore, small business owners believe that offering health benefits to employees serves as strong incentive for workers. Almost half (48%) of respondents believe a health benefits plan is more effective than paying employees a higher wage.
Small business owners cite a variety of reasons that motivated them to offer an employee benefits plan. The top reason is recruitment and retention, with 28% saying they use these benefits to attract and retain employees. Small business owners also provide health benefits as a competitive advantage, with 17% saying that they offer these benefits to keep up with the competition.
Likewise, company-sponsored retirement plans are also excellent recruitment and retention tools. According to the research results, small business owners who provide a retirement plan cite a variety of motivations, including encouraging retirement savings (22%) and retaining employees (21%). Of those who do not offer a retirement plan to employees, 43% say they would be motivated to do so in order to reduce turnover, 38% cite the benefit from tax incentives, and 31% the need to attract top-quality staff.
The report shows that 41% of small business owners agree that they have a responsibility to ensure that their employees save for retirement. “The reality is that millions of small business employees in Canada don’t have access to a workplace retirement savings plan and are not saving enough for retirement. Small business owners have an opportunity to educate themselves on existing retirement programs and the new Pooled Registered Pension Plan (PRPP) to determine the best option suited to them,” Avaria says. “Reinforcing the fact that your company is supporting your employees’ financial future is a great means to boost loyalty to your business.”
The Manulife Financial Small Business Research Report is based on the results of an online survey of 1,101 Canadian small business owners and senior managers across industry sectors and regions, conducted in April and May.