The document summarizes key findings from a 2012 survey of over 1,000 Canadian small business owners regarding employee benefits plans. It found that 63% felt an obligation to care for employees, though smaller businesses were less likely to feel this way. While 66% understood how benefits plans could help businesses, over half did not think benefits were more effective than higher wages. The top reasons for offering benefits were attracting and retaining employees (28%), keeping up with competition (17%), and ensuring employee well-being (17%). Only 35% saw benefits plans as a must-have, and just 3% cited benefits as a way to create organizational savings.

1.
Fact
Sheet:
Selling
on
Value
These
facts
are
from
the
2012
Manulife
Financial
Small
Business
Research
Report,
which
is
based
on
data
from
a
Rogers
Connect
Market
Research
group
survey
of
more
than
1,000
Canadian
small
business
owners
and
decision
makers.
Grouped
into
five
key
areas
that
are
crucial
to
advisors’
relationships
with
clients,
the
findings
provide
insight
into
how
small
business
owners
think
about
issues
related
to
their
benefit
and
retirement
plans.
• Almost
all
(63%)
of
the
small
business
employers
reported
“feeling
an
obligation
to
take
care
of
their
employees.”
o Smaller
companies
(two
to
10
employees)
are
least
likely
(57%)
to
say
they
feel
an
obligation
to
take
care
of
their
employees
(vs.
74%
of
companies
with
11
to
100
employees).
o Interestingly,
those
who
say
the
only
obligation
they
have
to
their
employees
is
to
pay
them
are
also
more
likely
to
report
that
employee
productivity
(24%
vs.
those
who
feel
an
obligation
to
take
care
of
their
employees
16%)
and
employee
absenteeism
(12%
vs.
7%)
are
problems.
• Most
small
business
owners/senior
managers
(66%)
say
they
understand
how
offering
a
health
benefits
plan
will
help
their
business.
But,
one-­‐third
(33%)
do
not
see
how
a
benefits
plan
will
help.
• More
than
half
(51%)
don’t
believe
that
it’s
more
effective
to
provide
employees
with
a
generous
health
plan
than
to
pay
them
higher
wages.
• The
top
three
reasons
owners
offer
a
benefits
plan
are:
1)
attracting
and
retaining
employees
(28%);
2)
keeping
up
with
the
competition
(17%);
and
3)
ensuring
the
health
and
well-­‐being
of
employees
(17%).
o As
companies
increase
in
size
(number
of
employees),
the
more
likely
they
are
to
cite
attracting
employees
as
a
problem
(two
to
10
employees
=
16%;
51
to100
employees
=
33%).
o The
view
that
competitive
health
benefits
are
crucial
in
attraction
and
retention
increases
with
company
revenue,
moving
from
33%
among
companies
with
less
than
$500K
annual
revenue
to
70%
among
those
with
$10M
or
more
revenue.
This
pattern
also
holds
based
on
the
number
of
employees
(two
to
10
=
35%;
51
to
100
=
70%).
• Only
35%
of
small
business
owners/senior
managers
say
offering
a
benefits
plan
is
a
must-­‐have
within
their
industry,
while
38%
are
neutral
and
27%
say
it’s
not
necessary.
• Only
3%
of
respondents
cite
offering
a
plan
as
a
way
to
create
savings
for
the
organization.