Group risk: bringing the SME into the fold

SME owners have, historically, shied away from employee benefit schemes. The perception is that they are too costly and complicated for the SME to afford and manage.

Often, smaller companies perceive themselves to be too small or feel that it is the staff's responsibility to take care of their medical aid, life insurance, and retirement planning, says Jorge Ramos, Executive Employee Benefits Sales Consultant at FedGroup.

What many SME owners fail to understand though is that these schemes protect their most valuable business assets, their staff. They are the ones who ultimately help to generate income, and without happy and healthy staff the business cannot succeed.

Fortunately, advances in internet-based technology, continued industry innovation and regulatory reform, along with the rise of outsourcing have all made employee benefit schemes a viable option for SMEs, offering them a strategic tool to increase employee satisfaction and happiness, and, ultimately, improve their bottom line.

Giving small business big benefits

With the advent of umbrella funds and group schemes, suitable group risk products that cater to everything from critical illness and death cover, to disability income protection and retirement savings, are available to SMEs.

In addition, the use of computer-based automation and self-help Internet-based systems help insurers streamline processes and reduce costs even further by removing more of the human resource-intensive admin requirements. For a relatively small account, brokers can now sign up the smaller business with very little effort, and rest assured that they are receiving the best possible benefits. All that is needed to quote and set up a group scheme is basic employee and payroll data, such as age, gender, location, and salary, with most umbrella schemes catering to staff complements of 5-500 staff.

Empowering staff

With these simple core benefits in place, employees are protected with the financial means to help them overcome disease or injury. It also gives them peace of mind as their families will be taken care of should something happen to them, or because they know they will be able to enjoy life in retirement.

But it's not just the employee who benefits. The ease of this process now also adequately addresses the fears, doubts and concerns of SME owners from a cost and complexity perspective.

Business boost

An additional consideration is the level of job hopping in the workforce, which is particularly prevalent among millennials. The average time range currently spent at a company is two to three years - another reason to boost employee retention. Umbrella arrangements give employees the flexibility to port their group cover to an individual policy and preservation fund through continuation options. This means that employees are also able to preserve their benefits throughout their economically-active lives.

The FedGroup Life Group Risk Policy provides cover for groups of employees or members and includes death, disability and critical illness. It is designed to provide a simple spectrum of Group Risk Cover that protects your employees and their families throughout their lives. There are various combinations of cover that can be selected by the policyholder. These combinations assist the policyholder in providing employees and members with benefits that meet their risk needs.

To find out more, contact Jorge Ramos on 011 305 2300, or visit http://fedgroup.co.za/life/life-cover/