2024 Survey Data: Canada’s Employee Benefits
With the job market as competitive as ever, offering a strong employee benefits package is crucial for attracting and retaining top talent. However, employee priorities and expectations around benefits continue to evolve. Understanding the current benefits landscape and what employees value most should be a key focus area for HR leaders and employers.
This analysis will provide an in-depth look at recent employee benefits surveys and research among Canadian companies and workers. It will highlight the top benefits that employees are looking for, how priorities have shifted in light of recent events, gaps between employer offerings and employee wants, strategies for balancing costs, key differences across demographics, and emerging benefits trends that HR professionals should have on their radar.
By leveraging insights from comprehensive Canadian employee benefits reports from sources like Conference Board of Canada, Sanofi Canada Healthcare Survey, Normandin Beaudry, and others, business leaders can gain a detailed understanding of the benefits landscape in Canada today.
Top Desired Benefits
Recent surveys show that health, dental, and retirement savings benefits remain highly valued by employees in Canada. According to the 2022 Sanofi Canada Healthcare Survey, prescription drug coverage, dental care, and retirement savings plans ranked as the top three most important benefits.
There has also been an increased emphasis on mental health, wellbeing, and work-life balance benefits. The LifeWorks 2022 Employee Benefits Trends survey found that 75% of employees said health and wellness benefits are important, with 38% specifically highlighting mental health support.
Employers like Sun Life are responding by expanding access to mental health resources, offering discounted gym memberships, and allowing flexible work arrangements. Supporting overall wellbeing has become a priority for many employees today.
Shifting Priorities and Expectations Around Benefits
The COVID-19 pandemic significantly shifted employee priorities and expectations when it comes to benefits offerings. With prolonged lockdowns and the rapid shift to remote work, employees now place a much higher value on flexibility, work-life balance, and paid time off.
According to a recent survey by Benefits Canada, over 60% of employees said flexibility is now one of their top priorities when evaluating an employer, compared to only 30% prior to the pandemic. Employees want options like remote work, flexible schedules, and more paid time off to achieve better work-life integration.
There is also an increased focus on more holistic wellbeing - financial, mental, physical. With heightened stress and burnout, employees want access to mental health coverage, stress management resources, and wellness programs. Retirement and financial planning tools have become more valued as economic uncertainty rises.
Additionally, employees increasingly want benefits customized to their unique needs and life stage, not just one-size-fits-all offerings. Younger workers may prioritize things like student loan assistance and pet insurance, while older employees want robust retirement savings plans and health coverage. Tailored offerings are key.
Gaps Between What Employers Offer and What Employees Want
Surveys show there are some key gaps between the benefits employers are currently offering compared to what employees say they want and value most. One major disconnect is around retirement savings benefits. While retirement plans like RRSP matching and defined benefit pensions are highly desired by employees, fewer employers are offering them, often citing cost and administrative challenges. Many employees also want better long-term disability coverage, life insurance, and other financial security benefits.
On the health benefits side, employees are looking for more flexible health spending accounts, higher coverage limits, and lower deductibles. There is also demand for more paid time off allowances, including sick days, personal days, and sabbaticals or paid leave for education or volunteering. Employers have been slower to expand time off allowances due to productivity and cost concerns.
There are some generational differences underlying these gaps. Millennials and Gen Z tend to prioritize paid leave, professional development stipends, and flexible work arrangements more than older employees. Baby Boomers place more emphasis on robust retirement savings plans and comprehensive health/dental benefits as they get older.
Balancing Costs While Providing Competitive Offerings
Employers face the ongoing challenge of balancing costs while still providing competitive and desirable benefits packages. There are several strategies companies can leverage to offer robust benefits within budget constraints:
Leveraging technology and voluntary benefits programs can help reduce costs. Offering benefits like pet insurance or identity theft protection through voluntary programs gives employees choice while keeping costs variable for the employer based on enrollment. Utilizing benefits administration technology can also streamline processes and reduce administrative costs (The Cost of Employee Benefits to Employers).
Rethinking traditional benefit offerings and provider partnerships may also yield cost savings. For example, employers could consider moving to lower cost prescription drug plans or re-evaluating insurance carriers to get better rates. Self-insuring certain benefits may also lower costs over time (How Much Do Employee Benefits Cost?).
Getting creative within budget constraints is key. Smaller companies can offer flex schedules, remote work options, and paid time off/sick days to compensate for less robust insurance and retirement plans. Employers can also consider offering niche or voluntary benefits like pet insurance and tuition assistance that appeal to employees without breaking the bank (Employer Costs for Employee Compensation).
Key Generational and Demographic Differences
Research shows there are notable differences between what various generations and demographics value most when it comes to employee benefits.
For example, millennials highly prioritize paid time off, parental leave, professional development, and student loan repayment assistance. According to ADP, millennials tend to understand their benefits options less than older workers, so education is important.
Baby boomers, on the other hand, place more emphasis on robust retirement savings plans, comprehensive health insurance, and wellness incentives. Flexible work arrangements are less important to them.
To serve a diverse multigenerational workforce, employers should consider customizing their benefits offerings and education. Benefits platforms that allow for personalized selections based on life stage and interests are also gaining traction.
Emerging Benefits Trends and Innovations
In addition to traditional offerings like health insurance and retirement plans, employers are starting to take notice of some emerging and innovative benefits trends:
Fertility, pet insurance, student loan repayment
Offerings like fertility benefits, pet insurance, and student loan repayment are gaining popularity as employers look for new ways to differentiate their benefits and meet diverse needs. Fertility benefits help employees offset the costs of fertility treatments or egg freezing. Pet insurance provides veterinary coverage. And student loan contributions help reduce employees' debt burdens.
Onsite health clinics, virtual care access
Some large employers are bringing healthcare onsite by offering primary care clinics at their workplaces. This provides easy access to care and saves on insurance costs. Others are partnering with telemedicine providers to offer virtual doctor visits. This makes care more convenient.
Personalization platforms
New platforms allow employees to customize their own benefits selections based on lifestyle and needs. For example, they may choose additional life insurance, identity theft protection, meal allowances, or home office stipends rather than a standard package.
Recommendations
Based on the analysis of current employee benefits trends and priorities, here are some key recommendations for HR professionals and business leaders looking to enhance their benefits offerings:
First, focus on providing flexible work arrangements, robust health insurance, retirement savings plans, and generous paid time off as these remain highly valued by employees across demographics (Forbes Advisor, 2023). Flexibility in particular has become even more important in a post-COVID landscape.
Look for gaps between what you currently offer compared to what employees are asking for. For example, employees want more access to mental health services, financial planning tools, paid parental leave, etc. that employers may not provide (SHRM, 2022). Close these gaps where possible to better align with expectations.
Get creative within budget constraints. Leverage solutions like voluntary benefits, splitting costs with employees, building virtual onsite clinics, or rethinking traditional offerings to provide enhanced benefits at lower costs (Workable, 2023).
Consider customizing your benefits portfolio to serve the diverse needs of different demographics within your workforce. For instance, student loan repayment or fertility benefits tend to appeal more to millennial and younger employees (Forbes Advisor, 2023).
Finally, stay on top of emerging benefits trends and innovations. Offerings like pet insurance, identity theft protection, and lifestyle spending accounts are gaining popularity (Workable, 2023). Pilot new relevant benefits as they emerge to remain competitive.
Conclusion
In summary, recent surveys reveal that health, dental, retirement savings, and paid time off remain highly valued benefits among Canadian employees. However, priorities have shifted, with a greater emphasis on holistic wellbeing including mental health, work-life balance, and financial security. There are gaps between what many employers currently offer and what employees want, especially in areas like retirement savings, life insurance, paid leave, and health spending accounts. While budgets are tight, employers need to get creative in closing these gaps through technology, voluntary benefits, and employee cost-sharing where possible. There are also key differences across generations and demographics that highlight the need to customize offerings. By staying on top of emerging trends in benefits and prioritizing flexibility, health, retirement, paid leave, and wellbeing, employers can provide the comprehensive, competitive benefits that today's diverse workforce expects.
With a challenging labor market and the impacts of the pandemic, it is more important than ever that employers understand the evolving benefits landscape and adapt their offerings accordingly. Taking the time to understand what employees value most, and tailoring benefits plans to meet their needs and preferences, will be key to attracting and retaining top talent. Employers who fail to align benefits with employee priorities risk falling behind in recruitment and retention. By regularly surveying their workforce and benchmarking against industry trends, HR leaders can ensure their benefits keep pace with this changing environment.
Ask Yourself
What benefits are most important to you and your colleagues? Do you feel your employer's offerings match your priorities?
How has your organization adapted benefits in response to COVID-19, remote work, and a diverse workforce? What strategies have been most effective at balancing costs?
As an HR professional, which of the trends covered most excites or concerns you? How are you preparing for emerging benefits like pet insurance and student loan repayment?
What benefits innovations would you most like to see in the coming years? How can employers continue to evolve offerings to attract and retain top talent?