How It Works
Let’s say you lay off an employee on December 1st. Over the year he or she banked 450 hours in their bank. They will have benefits for December, January and February that they have already saved for that can be used for the dentist, medications and anything else their employee benefit plan covers.
When the employee comes back in March they begin work again and they continue receiving benefits as if they never left. That’s pretty much how employee benefit plans for the construction industry work, yet many Canadian companies aren’t aware and their employees are left without coverage for a vital part of the year.
BONUS: One particular bonus of this method is that the premium doesn’t change for a single person or 5-person family. This is great for employer because it’s cost-controlled while the employee gets more coverage for the same amount.
Construction is a physical industry that requires employees to maintain their bodies before the quality of their physiology (and work performance) begins to suffer. A sick or out-of-shape employee will be getting paid the same as the healthy one beside them and that is where a company’s bottom line gets hit hardest.
When cash flow is low in the winter, you don’t have to pay premiums for employees who aren’t working to entice them to come back to work in the spring. You’ve supported them by helping them bank hours during the summer so they could cover their own benefits during the winter. By the time spring comes along, they are still your employees.
TIP: Employers can easily recover costs associated with employee benefit plans by considering the expenses when quoting jobs to clients.
A Plan That Works For Everyone
Learn more about the details of employee benefit plans for the construction industry here. Any business that is physical will see a direct ROI benefit from taking care of employees by giving them the tools to take care of themselves.