With rising inflation rates across the country, small businesses are worried about how they are going to compete in this highly competitive hiring market. Covid took a lot out of small business in Canada. And, while the easing of numbers and restrictions have helped, increasing costs as a result of inflation, supply chain issues and rising interest rates, have many small business owners worried about how they are going to compete with increased wages and perks that some of the larger companies are able to offer their team.
During the pandemic, Canadians saw the increase in prices of almost everything from groceries, to cars, and even simple consumer goods like running shoes. At the beginning, many economists and financial specialists argued that this was what they call transitory inflation. They theorized that the costs were being pushed up by the unique circumstances of the pandemic which was leading to supply chain mayhem and shortages.
However, by the end of 2021 it was becoming evident to everyone that inflation didn’t seem to be going away. Instead, in 2022 it seemed to pick up steam with Statistics Canada finding that year-over-year inflation in Canada was running at 7.7% in May, marking the first time in almost 40 years that Canada has hit that level of inflation.
Inflation means that Canadians in general are having a tougher time. A recent poll from Ipsos found that 85% of Canadians were concerned about inflation making everyday expenses less affordable. Likewise, a May poll by Angus Reid, found that almost 1/3 of Canadians believed that their financial situation would continue to decline over the next year.
What Does This Means For Small Businesses?
As a small business owner, this means that you have the double whammy of trying to ensure that your business remains profitable while at the same time trying to make sure that you and your team remain healthy and productive in the workplace. On top of that, you have the challenge of competing in a very tight labour market where larger companies are using their resources to add more and more benefits to their employee benefits and perks packages.
How Group Benefits Can Help
A great way to address some of these issues is to revitalize your company’s benefits offering. Group benefits are an increasingly popular tool for businesses to stand out with employees and are a cost-effective way to give your team the resources they need.
Employees are looking for better benefits from their employers. Recent reports have found that nearly ½ of Canadians are looking for increased access to health, financial and wellness resources from their employers. Employees are looking for new and more flexible benefits to fit their needs. A recent RBC survey found that Healthcare Spending Accounts (HSAs) are now one of the most asked for benefits for Canadians with 80% of those surveyed saying they would want one as part of their benefits package.
Adding a BeniPlus Wallet is a simple, flexible and affordable way to ensure your team has access to the benefits they need. Our flexible spending account allows employees to divide their benefits dollars between their eligible benefits categories of Healthcare Spending Accounts (HSA), Wellness Spending Accounts (WSA), Registered Retirement Savings Plans (RRSP), Personal Insurance and Charitable Giving. Whether it is the healthcare support they need, a great pair of prescription glasses, or even a gym or sports equipment, your team will be able to spend their benefits on the things they need.
Plus, as the employer you will have complete control over the maximums for each group (or class) of employees and the benefits categories that they can access. Even better, you only ever pay when a claim is approved. You never have to worry about paying for benefits your employees do not want or even need.
With the increasingly tightening labour market and rising costs due to inflation, now is a great time to look into your company’s benefits offering. Benefits are some of the most desirable employment options today and are a cost-effective way for small businesses to compete for amazing talent across the country.
To learn more about what a BeniPlus Wallet can do for you and your team, get a quote today!