Is your benefits program costing you more than it should?

Many business owners and leaders want to take care of their employees – and for good reason. A good benefits program helps your team stay healthy, happy, and loyal. But here’s something we often see: what looks like a generous benefits plan on paper costs your business more than it should – while not providing the value it could.

It’s not about cutting corners. It’s about designing a plan that makes sense for your team and your bottom line.

Let’s break it down.

1. Overbuilt doesn’t mean better

It’s tempting to try to check every box in your benefits plan – more dental, more paramedical, more everything. But more coverage doesn’t always mean more value. In fact, it often results in higher costs and lower impact.

What we’ve seen time and again is this: when employers ask their people what they really want, the answer isn’t “more coverage.” It’s more choice.

That’s why instead of stacking on more rigid benefits like additional dental or extended paramedicals, adding a Health Spending Account (HSA) can be a smarter move. It gives employees the flexibility to use the funds where they need them most – whether that’s therapy, orthodontics, or new glasses.

In other words, a leaner plan with targeted coverage plus an HSA often delivers better value than an “everything but the kitchen sink” approach. It’s not about having more coverage – it’s about having the right coverage.

2. Tax inefficiency: The hidden cost

Even when a benefits plan is well-used, poor tax structure can lead to unnecessary costs.

Here are a few questions to consider:

• If you offer a Health Spending Account, is it structured in a way that’s fully tax-deductible for the company?
• Is the business contributing towards the cost of life insurance or disability program? If so, there are taxable benefit considerations to be aware of.
• Are you offering a group retirement program that actually lowers tax bills for both your business and your employees?
• If you’re a key-employee, are you receiving benefits in a way that avoids being taxed personally?
   

When designed properly, your plan can help reduce tax. But if the structure isn’t right, you may be paying more taxes than you should, and your employees might be, too.

3. Coverage gaps can be risky

Just as some plans are overbuilt, others are outdated. If your company has grown or changed, your benefits might not be keeping up.

We’ve seen:

• Businesses where key employees are underinsured, risking big costs if something happens to them.
• Outdated coverage that doesn’t reflect today’s needs, like limited mental health and well-being supports, even though demand has risen.
• Plans without proper disability coverage for top earners, leaving executives vulnerable.
   

These aren’t small issues. Gaps like these can lead to real financial harm – for your people and your business – when something unexpected happens.

Make sure you’re getting what you pay for

In a recent Benefits Canada Healthcare Survey, 58% of Canadian employers said rising benefits costs are one of their biggest concerns, but many haven’t updated their plan in years.¹ That’s like paying for a gym membership you don’t use – and then wondering why you’re not getting stronger.

It’s not just about reviewing rates. It’s about reviewing your strategy:

• Do your benefits meet the real needs of your team?
• Are they aligned with your company’s goals and values?
• Are you paying more in taxes and premiums than necessary?
   

How we can help

We pride ourselves on being more than just brokers. Our Business Advisory Team is focused on helping you solve problems and providing meaningful advice. We’re here to help you:

• Review your plan design for gaps and overlaps
• Align benefits with your team's real needs
• Optimize the tax structure of your program to help you save
• Help protect your business from unexpected costs
• Act as your advocate
   

We believe in doing things the right way, even when it takes more time. Our team has decades of experience helping business owners like you get clarity, protect what you’ve built, and support the people who help your business thrive.

Let’s have a conversation

You care about your team. You care about your business. Your benefits plan should support both.

If you haven’t taken a deep look at your benefits strategy in the last few years, now is the time. Let’s talk about how we can help you get more value from your plan.

Sources

1. Benefits Canada Healthcare Survey 2023: Benefits in a New Light – Perspectives to Help Crystalize and Communicate the Value of Health Benefits. 2023. Benefits Canada. https://www.benefitscanada.com/wp-content/uploads/sites/7/2023/09/BCHS-Report-2023-0925-ENG.pdf