The Ultimate Guide to Building an Attractive Employee Benefits Package in Alberta
Employee benefits are an important part of overall compensation and a key factor in job satisfaction and retention. Studies show that benefits can play a major role in an employee's decision to take or stay at a job.
In Alberta, some of the most commonly offered benefits include health insurance, dental coverage, disability insurance, life insurance, and retirement savings plans. Providing a competitive benefits package is important for attracting top talent and keeping employees happy and productive.
Health Insurance
Health insurance is one of the most highly valued benefits for Alberta employees. Comprehensive health insurance provides coverage for medical expenses like prescription drugs, hospital stays, paramedical services like physiotherapy and massage therapy, ambulance transportation, medical equipment, and more. Many plans also bundle in vision coverage for eye exams, glasses, and contacts.
Employers typically cover at least 50% of the premium cost, with employees paying the remainder through payroll deductions. Costs vary based on the richness of coverage, number of dependents covered, and demographics of the employee group. Co-pays, deductibles, and annual or lifetime maximums help keep premiums affordable.
According to Marsh MMA's 2024 Employee Health and Benefits Trends report, employees are looking for health plans that offer convenience through virtual care access, integrated wellness incentives, and easy claims processes. Customization is also increasingly valued, with employees willing to pay more for plans that meet their specific needs.
Dental & Vision
Dental insurance helps employees cover the costs of routine dental care as well as major procedures. Employers can offer basic or enhanced dental plans with different annual maximums. Basic dental usually covers preventative services like cleanings and x-rays at 80-100%, and basic procedures like fillings at 80%, with a maximum of $1000-1500 per year. Enhanced plans increase the annual maximum to $2500-5000 and cover major procedures like crowns, bridges, and dentures at 50-80%. Typical co-pays are 20% for basic and 50% for major services.
For vision, employer benefit plans generally pay the full cost of standard eye exams annually and contribute towards prescription glasses or contacts every 2 years. Some plans also cover laser eye surgery. The average maximum for vision benefits is around $300 per employee Every 2 years.
Disability & Life Insurance
Disability insurance helps replace income for employees who are unable to work due to illness or injury. Both short-term and long-term disability plans are common. Short-term disability typically kicks in after 1-2 weeks of absence and covers 60-80% of salary for several months. Long-term disability coverage then takes over, often paying out 60% or more of income until retirement age. Premiums are usually under 1% of total payroll.
According to Sun Life, disability claims have risen 17% from 2016-2019, driven largely by mental health issues and chronic illnesses. Long-term disability costs in particular are projected to keep rising in 2024 and beyond..
Group life insurance pays out a lump sum to beneficiaries if an employee passes away. Basic life insurance is often mandatory, providing 1-2x annual salary at low cost. Additional voluntary coverage can allow employees to top up. Employers may cover premiums fully or share costs with staff.
Retirement Savings
Retirement savings plans are a highly valued benefit for Canadian employees. The most common employer-sponsored retirement plans in Canada are RRSP matching and defined contribution pension plans.
With an RRSP matching program, employers will match a percentage of employee contributions to a personal Registered Retirement Savings Plan (RRSP). This helps employees save more for retirement in a tax-deferred account. According to Statistics Canada, the average RRSP contribution in Canada is around $8,900 per year. Even matching 25-50% of employee contributions can significantly boost retirement readiness.
The tax incentives associated with RRSP and pension plans make them very attractive to employees. Contributions reduce taxable income now, and accounts grow tax-deferred. Employers can highlight these benefits when promoting workplace retirement plans.
Flexible Work Arrangements
Flexible work arrangements have become increasingly popular among employees in recent years. The ability to work remotely or have flexible schedules provides many benefits for workers.
Working from home has seen significant growth since the COVID-19 pandemic, with over 30% of Canadian employees now working remotely according to Statista. Employees appreciate the time and cost savings from reduced commuting. Remote work also allows businesses to access talent across the country.
Flex schedules, such as alternative start/end times or compressed work weeks, allow employees to better manage personal responsibilities. According to Statistics Canada data, employees feel they are more productive working from home. Flexibility demonstrates trust and fuels engagement.
Work-life balance has become a top priority. Flexible arrangements allow employees to achieve greater balance between their personal and professional lives. This leads to reduced stress and burnout, making employees happier and more loyal.
Offering flexible work options can give employers an edge in attracting and retaining top talent. The ability to work remotely or adjust schedules provides value that employees really appreciate.
Vacation & Leaves
Employers in Alberta are required to provide a minimum number of paid vacation days and leaves. Under the Alberta Employment Standards Code, employees are entitled to:
2 weeks of vacation after 1 year of employment
3 weeks of vacation after 5 years of employment
Up to 16 weeks of maternity leave
Up to 37 weeks of parental leave
Many employers choose to offer more than the legal minimum vacation time to attract talent. Some allow employees to purchase extra vacation days or cash out unused vacation time.
Maternity and parental leave are important considerations, especially for companies employing younger demographics. Employers must grant the leave and allow employees to return to their job afterwards.
There are also leaves of absence permitted for reasons like bereavement, jury duty, and long-term illness. Understanding legal leaves can help employers develop comprehensive policies.
Tuition Reimbursement
Tuition reimbursement is a popular benefit that supports employees' professional development and continuing education goals. Studies show that around 80% of working adults are interested in pursuing additional schooling, yet only 40% are aware if their employer offers tuition reimbursement (Must-know tuition reimbursement statistics for 2024). With the costs of higher education rising, tuition assistance programs provide valuable financial support.
The majority of Canadian executives (80%) say they would be willing to provide tuition reimbursement benefits to staff, according to a 2018 survey (Majority of Canadian execs would offer tuition reimbursement to staff, survey). Employees often cite tuition reimbursement as an attractive benefit when considering job offers.
For employers, investing in employees' development through tuition assistance can improve retention, engagement, and skills. Many companies offer reimbursement of up to $5,000 or more per year, with repayment obligations if the employee leaves shortly after. Setting clear policies around qualifying programs, grades required, and reimbursement terms helps manage the benefit.
Tuition reimbursement shows employees you support their growth and makes the investment required for continuing education more feasible. Especially for fields requiring certifications or advanced degrees, this benefit allows workers to upskill while offsetting some costs.
Health & Wellness
Health and wellness benefits are becoming increasingly popular with employees. According to one report, the corporate wellness market is expected to more than double by 2032 (1). Offering wellness benefits can boost morale, reduce absenteeism, and promote better health outcomes.
Some of the most common wellness benefits include gym memberships or stipends, employee assistance programs (EAPs), and nutritional counseling. Many employers offer a set dollar amount each month that employees can use towards a gym membership or fitness classes. This incentivizes employees to stay active and make healthy lifestyle choices. EAPs provide confidential counseling and referral services for issues like mental health, relationships, addiction, and stress. Access to EAP services can improve overall wellbeing. Nutritional counseling from a dietician or nutritionist is another valuable offering, helping employees make positive changes to their diet.
When implementing wellness initiatives, it's important to survey employees first to understand their needs and interests. Programs should focus on overall wellbeing, not just physical fitness. Maintain confidentiality around usage and ensure accessibility for all employees. With thoughtful planning, wellness benefits can have a profoundly positive impact on workplace culture.
Conclusion: Employee Benefits in Alberta
Choosing the right employee benefits package is crucial for attracting and retaining top talent in Alberta. The most valuable benefits tend to be health insurance, retirement savings plans, paid time off, and flexible work options. Employers should consult with staff to ensure offerings align with their needs and preferences.
Benefits are a significant part of overall compensation and job satisfaction. By providing competitive and appreciated benefits, Alberta employers can boost recruitment, retention, engagement, and productivity. At the same time, benefits help employees protect their health, save for the future, and achieve work-life balance.
For more information on optimizing benefits for an Alberta organization, consult resources like the Alberta Employment Standards Code, the Alberta Chamber of Commerce, and group insurance specialty brokerages such as Benefluent Advisory Inc. . With research and planning, employers can create a benefits package that attracts talent while fitting their budget.
About Benefluent Advisory
Benefluent Advisory is a leading employee benefits consulting firm dedicated to crafting innovative strategies tailored for the modern workforce. With decades of combined experience, our experts provide guidance to maximize the value of your benefits program.
Our services include:
Strategic benefits planning
Cost containment strategies
Plan design and administration
Vendor analysis and selection
Employee communication and education
To learn more about how Benefluent Advisory can optimize your benefits program, contact us today:
Phone: 1 888-984-6070
Email: hello@benefluent.ca
Website: https://benefluent.ca/
Our team of experienced consultants look forward to helping you provide exceptional benefits that empower your workforce.