{"id":381,"date":"2020-01-14T21:56:00","date_gmt":"2020-01-15T05:56:00","guid":{"rendered":"https:\/\/immixgroup.ca\/blog\/?p=381"},"modified":"2022-02-06T22:00:12","modified_gmt":"2022-02-07T06:00:12","slug":"employee-benefits-vs-a-straight-salary-raise-one-is-significantly-better-for-your-business","status":"publish","type":"post","link":"https:\/\/immixgroup.ca\/blog\/2020\/01\/14\/employee-benefits-vs-a-straight-salary-raise-one-is-significantly-better-for-your-business\/","title":{"rendered":"Employee benefits vs. a straight salary raise: One is significantly better for your business"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"381\" class=\"elementor elementor-381\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6763d47 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6763d47\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e8f566f\" data-id=\"e8f566f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8f93763 elementor-widget elementor-widget-text-editor\" data-id=\"8f93763\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"post-info\"><ul><li>By\u00a0<a href=\"https:\/\/www.immixgroup.ca\/Employee-benefits-vs-raise.html#\">Howard Cheung, Account Executive, Immix Group\u00a0<\/a>\/ Jan 14, 2020<\/li><\/ul><\/div><p>The old-school view would tilt toward getting a raise, on the theory that a bird \u2013 well, okay, a bunch of dollars \u2013 in the hand seems the more tangible value. But when you do the deep-dive financial analysis, offering benefits worth the same amount comes out on top.<\/p><p>\u00a0<\/p><p>Let&#8217;s take a closer look. A good benefits package for an employee with full family coverage is around $3,000 annually as premium. If this $3,000 were to be implemented as a salary raise, it would translate to a higher employer payroll tax. Moreover the employee would lose out because it is taxable income. So, the $3,000 annual raise wouldn&#8217;t be worth as much to either employer or employee.<\/p><p>\u00a0<\/p><p>By contrast, if you go with a benefits program, there are tax advantages to both of you. Employee benefits premiums paid by the employer are tax-deductible to the business\u00a0<em>and<\/em>\u00a0mostly a tax-free benefit to the employee (health and dental are non-taxable). The thing is, the government of Canada wants to reward companies that take care of their employees. The government understands that, for the long term, enhancing <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2020\/12\/04\/employee-benefits-what-you-need-to-know-about-discounted-group-benefits-pricing\/\">employee benefits<\/a> is not only better for our economy but for overall health of our country.<\/p><p>\u00a0<\/p><p>From a psychological standpoint, the\u00a0<em>perceived<\/em>\u00a0value of receiving a benefits package is also higher. Here&#8217;s where genuine tangibility comes in (sorry, old-school types). People will real-life experience the <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/10\/29\/top-8-faqs-for-business-owners-when-implementing-an-employee-benefits-plan\/\">employee benefits<\/a> program by using it for dentist visits, physiotherapy appointments, at the pharmacy, and more. Employees will engage with the program repeatedly throughout the year, both for themselves and their families.<\/p><p>\u00a0<\/p><p>This is especially true when the business enlists a professional benefits consultant. Savvy advisors help engage the <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2022\/04\/19\/part-2-the-hybrid-work-model-is-working-from-home-an-employee-benefit\/\">employees by taking them step by step through all aspects of the benefits<\/a> program via:<\/p><p>\u00a0<\/p><ul><li>education sessions<\/li><li>clear communications<\/li><li>phone-call and e-mail availability to answer questions, and<\/li><li>\u00a0access to useful benefits tools.<\/li><\/ul><p>\u00a0<\/p><h3><strong>Offer the best to attract the best<\/strong><\/h3><p>Last but by no means least, another reason companies provide good benefits is to increase their competitiveness. A solid <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/01\/15\/the-best-time-to-review-your-benefits-program-is-now\/\">benefits program<\/a> helps attract top talent and retain a strong team. To maximize your company&#8217;s attractiveness to that top tier, make sure your benefits are designed to be truly valuable, not just some superficial, cookie-cutter plan.<\/p><p>\u00a0<\/p><p>Because one size emphatically does\u00a0<em>not\u00a0<\/em>fit all \u2013 and that&#8217;s where <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/04\/20\/renewing-employee-benefits-in-2021-here-are-things-to-know-going-forward-to-keep-costs-down\/\">employee benefits<\/a> consultants come in. They work for your company based on your unique employer and <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2020\/08\/05\/business-owners-how-to-pivot-your-employee-benefits-to-adapt-to-the-changing-landscape-of-employee-needs\/\">employee needs<\/a>, as opposed to some slashed-rate, self-serving broker bartering whatever happens to be the benefit-market condition of the day. Don&#8217;t settle for the latter. When an employee leaves your company, it costs you time and money. Your turnover cost isn&#8217;t just in lost productivity, but replacement costs, advertising the position, time spent on interviewing and, of course, training the new individual you finally hire.<\/p><p>\u00a0<\/p><p>To recap, as a business owner you will appreciate \u2013 and profit by \u2013 being aware of the tax advantages employee benefits programs provide, both to <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/11\/17\/3-action-steps-employers-can-take-to-reduce-employee-financial-stress-and-increase-financial-literacy\/\">employer and employee<\/a>. Your business will enjoy the derived benefit of hiring and retaining an excellent team. Once you have that solid, top-tier-attractive program installed, you&#8217;ll see that <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/07\/13\/hybrid-traditional-flexible-employee-benefits-a-sample-design-for-smbs\/\">employee benefits<\/a> actually serve you as \u201cHR insurance,\u201d if you will.<\/p><p>\u00a0<\/p><p><em>For more information, please feel welcome to contact me:\u00a0<\/em><a href=\"mailto:howard@immixgroup.ca\"><em>howard@immixgroup.ca<\/em><\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-565f6ff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"565f6ff\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b832a91\" data-id=\"b832a91\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0ad5336 elementor-widget elementor-widget-global elementor-global-227 elementor-widget-text-editor\" data-id=\"0ad5336\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<script src=\"https:\/\/apps.elfsight.com\/p\/platform.js\" defer><\/script>\n<div class=\"elfsight-app-83f14fdc-92b5-4456-9af4-0934ad166639\"><\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f395c6e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f395c6e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-61f5253\" data-id=\"61f5253\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8452e29 elementor-widget elementor-widget-global elementor-global-287 elementor-widget-image\" data-id=\"8452e29\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"960\" src=\"https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-683x1024.avif\" class=\"attachment-large size-large wp-image-1986\" alt=\"\" srcset=\"https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-683x1024.avif 683w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-200x300.avif 200w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-768x1152.avif 768w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard.avif 1000w\" sizes=\"(max-width: 640px) 100vw, 640px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-a710be6\" data-id=\"a710be6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f8259d3 elementor-widget elementor-widget-global elementor-global-290 elementor-widget-text-editor\" data-id=\"f8259d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><span class=\"cert\"><a href=\"https:\/\/www.linkedin.com\/in\/howardch\/\" target=\"_blank\" rel=\"noopener\">Howard Cheung BBA<\/a><\/span><\/h3>\nEmployee Benefits Consultant, Immix Group: An Employee Benefits Company\n<strong>A<\/strong> <a href=\"https:\/\/www.google.com\/maps\/embed?pb=!1m18!1m12!1m3!1d2602.5699178039927!2d-123.12053598382099!3d49.28454617855886!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x54867181f97930d5%3A0x9797e526e8704198!2s888%20Dunsmuir%20St%20%23450%2C%20Vancouver%2C%20BC%20V6C%203K4!5e0!3m2!1sen!2sca!4v1583124389424!5m2!1sen!2sca\" target=\"new\" rel=\"noopener\">Suite 450 &#8211; 888 Dunsmuir St. Vancouver V6C 3K4<\/a><\/p><p>\n<strong>Ph<\/strong> <a href=\"tel:6046885559\">604-688-5559<\/a><\/p>\n\n<p><strong>E<\/strong> <a href=\"mailto:info@immixgroup.ca\">info@immixgroup.ca<\/a><\/p>\n<p><strong>W<\/strong> <a href=\"https:\/\/www.immixgroup.ca\/\">www.immixgroup.ca<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>By\u00a0Howard Cheung, Account Executive, Immix Group\u00a0\/ Jan 14, 2020 The old-school view would tilt toward getting a raise, on the theory that a bird \u2013 well, okay, a bunch of dollars \u2013 in the hand seems the more tangible value. But when you do the deep-dive financial analysis, offering benefits worth the same amount comes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":31,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-benefits"],"_links":{"self":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/comments?post=381"}],"version-history":[{"count":13,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/381\/revisions"}],"predecessor-version":[{"id":876,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/381\/revisions\/876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/media\/31"}],"wp:attachment":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/media?parent=381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/categories?post=381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/tags?post=381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}