YOUR QUESTIONS ANSWERED: Employee benefits for small businesses
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I’ve just launched a small business, and I need to structure the employee benefits, but I have no idea where to start. What is the most important aspect for a small business to consider?
Shreekanth Sing, Wealth Manager at PSG Wealth, responds: As a small business, a well-structured employee benefits offering will prove to be invaluable in terms of ensuring the financial wellbeing of employees and retaining and attracting new employees as the business grows.
When we think about employee benefits (EB), we tend to single out our retirement fund, but a typical EB offering is made up of much more than this. In addition to a retirement fund benefit, it may also include risk benefits such as group life, critical illness and income protection and funeral cover. EB offerings will have a fundamental impact on the financial security of your employees, and the quality of life that they, and their families, are able to achieve.
A typical structure should include retirement savings, risk cover and healthcare. The retirement savings will ensure that employees are saving for retirement in a disciplined manner; the risk cover will ensure, depending on the benefits selected, that life cover is in place to assist the family, by settling any outstanding debt, like a home loan, should the employee pass away; income protection will provide a monthly income should the member be unable to work due to becoming disabled; and critical illness cover will pay out in the event of being diagnosed with a severe illness like cancer.
Where to start, arriving at the right set of benefits for your company and its employees, is a complex process that involves carefully weighing up a variety of factors. I suggest you seek expert advice from a financial adviser, who will understand your business and employees’ unique needs, offer invaluable insights, and recommend the most appropriate basket of employee benefits for your business.
Most importantly, the adviser will tailor solutions according to the ever-changing landscape of financial needs, leaving you and your employees free to focus on running and growing your business.
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