2024 Canadian Employee Benefits Study (Results)
Offering a strong employee benefits package is more important than ever for attracting, retaining, and engaging top talent. As the job market grows increasingly competitive, benefits have become a key differentiator that job seekers evaluate when considering potential employers. Studies show that benefits strongly influence both recruitment and retention.
8% of employees say benefits are a major factor in their decision to accept a job offer. Benefits also boost engagement and loyalty. Research from SHRM found that employees who are very satisfied with their benefits are three times more likely to stay at their current company. At the same time, priorities and expectations around benefits are shifting. The COVID-19 pandemic has led to greater emphasis on wellbeing, work-life balance, and mental health support. Employees today want personalized offerings that meet their unique needs and preferences. Employers need to take a strategic approach to benefits to attract top talent, while managing costs and complexity.
Top Employee Benefits Valued in Canada
Recent surveys of Canadian employees reveal some consistent top priorities when it comes to benefits. According to the 2022 Sanofi Canada Healthcare Survey, the most valued benefits for employees are additional paid time off (35%), retirement savings plans (34%), and health and dental insurance (33%). Other highly ranked benefits include employee wellness programs (27%), flexible work arrangements (26%), and professional development opportunities (25%).
The COVID-19 pandemic increased the focus on wellbeing-related benefits. A survey by People Corporation showed 34% of employees ranked mental health coverage as their most-wanted benefit for 2022, compared to just 9% pre-pandemic. Employers have responded by beefing up their mental health and wellness offerings. For example, Starbucks Canada recently enhanced their benefits plan to include expanded mental health coverage and free subscription to the Headspace meditation app.
While health insurance and retirement plans remain essential, the recent emphasis on wellbeing demonstrates the evolving priorities of today's workforce. Employers need to take these shifting expectations into account as they design competitive benefits packages. Offering the right mix of traditional and emerging benefits can be key for attracting and retaining top talent.
Health Insurance
Health insurance continues to be one of the most valued benefits by employees in Canada. Surveys show that benefits like prescription drug coverage, dental, vision, and paramedical coverage rank high in importance for workers. With the rising costs of healthcare, employees are looking to their employer plans to provide adequate coverage for essential medical needs.
For employers, providing health insurance benefits can be a significant expense. Options like customizable plan designs, health spending accounts, and cost-sharing measures can help manage costs while still providing coverage that meets employee needs. Some trends like virtual healthcare access and expanded mental health coverage aim to enhance benefits offerings. Overall, health insurance remains a must-have benefit that can impact recruitment, retention and employee satisfaction.
Retirement and Financial Benefits
Retirement and financial benefits are consistently top priorities for employees in Canada. According to Statistics Canada, the average retirement age has decreased over time, with more Canadians retiring before age 65. This puts greater importance on strong retirement and savings plans from employers.
Pension plans and RRSP matching programs are highly valued by employees. According to a survey by Economica, 89% of employers offer registered pension plans, while 43% offer matching RRSP contributions. Having an employer contribute to retirement savings significantly helps employees prepare for the future.
Some companies also offer financial planning assistance as a benefit. This can include access to financial advisors, retirement planning seminars, personalized investment advice, and education on topics like budgeting and debt management. With the rise of financial stress, these types of programs can help employees gain control over their finances.
Employers that provide robust retirement and financial benefits demonstrate a commitment to employees' long-term financial wellbeing. Companies should ensure their benefits plan includes competitive offerings to attract and retain talent looking for security in retirement. As Canadians shift towards earlier retirement, these benefits only grow in importance.
Paid Time Off
Paid time off remains one of the most valued benefits by employees in Canada. This includes traditional paid vacation and sick days, as well as increased flexibility through remote work and flexible scheduling. Surveys show that employees highly value having adequate paid time off to recharge and attend to personal needs.
79% of employees ranked having paid vacation time as a top priority benefit. Employees reported lower stress and improved work-life balance when provided sufficient paid vacation time. The standard in Canada is a minimum of 2 weeks vacation, with many employers now offering 3-4 weeks paid vacation especially for more senior roles.
In addition to vacation time, having paid sick days is valued by employees for times when they need to stay home due to illness. Many employers offer 5-10 paid sick days per year. Some organizations are shifting to more general paid time off (PTO) plans that combine sick days with vacation into one bucket of paid days off employees can use flexibly.
Flexible work arrangements have also grown in popularity coming out of the pandemic. Surveys show the ability to work remotely or have flexible hours is now a top priority benefit that often outranks pay. Employers who provide options like remote work, compressed schedules, or flexible hours are perceived as more attractive by job seekers.
Wellness and Wellbeing
Wellness and wellbeing benefits are increasingly valued by employees in Canada. According to a recent survey by Benefits Canada, 47% of Canadian employees are relying on workplace benefits to improve their wellbeing. Employers are responding by investing in innovative wellness offerings to drive talent attraction and retention.
Some of the most sought-after wellness benefits include:
Discounts on gym memberships and fitness classes
Onsite fitness facilities and fitness challenges
Expanded health coverage for services like massage therapy and nutritionists
Employee assistance plans and access to mental health supports
Health coaching and disease management programs
According to Randstad Canada, 34% of employees want their employer to offer onsite fitness and wellness facilities. Additionally, 45% are looking for employee assistance plans for counselling and mental health support. Wellness benefits that support physical and mental health are becoming necessities to attract and retain top talent.
Professional Development
Professional development opportunities are highly valued by employees in Canada. Many companies offer tuition reimbursement programs to support continuing education. This allows employees to take courses, pursue degrees and certifications relevant to their role and career growth. According to research, over 60% of Canadian employers offer some form of tuition subsidy.
In addition to tuition support, employers provide access to skills training, seminars, workshops, and conferences. Ongoing learning opportunities allow employees to stay up-to-date on the latest trends and best practices in their field. It shows an investment in their growth. Surveys find that millennials in particular prioritize professional development benefits when considering job offers.
The benefits of offering professional development for employers include increased employee engagement and retention. Employees feel that their company cares about their career progression. It also leads to a more skilled and productive workforce. However, employers need to be strategic in the development opportunities they provide to align with business objectives.
According to one source, "Some Canadian employers also offer professional development benefits, like funding courses or conferences, similar to US companies."
Lifestyle Benefits
In addition to traditional benefits, many companies are offering lifestyle benefits and perks to enhance employees' overall quality of life. These are designed to save money, create convenience, and promote work-life balance for employees. Some popular lifestyle benefits include:
Discounts and Subsidies: Many employers offer discounts or subsidies for things like public transit, ride sharing, parking, meals, phones, gyms, and other services employees frequently use.
Work-Life Balance Perks: Flexible work schedules, remote work options, paid time off, paid parental leave, childcare assistance, and sabbaticals help employees manage their work and personal lives.
Health and Wellness: Some companies provide gym memberships, fitness classes, nutrition guidance, mindfulness programs, or onsite health services.
Financial Assistance: Student loan repayment, home buying assistance, financial planning services, and identity theft protection provide financial security.
The goal is to provide benefits that improve employees' overall quality of life and show the company cares about them as individuals.
Customization and Personalization
Customization and personalization have become increasingly important in benefits offerings. Many employers are moving towards flexible "cafeteria-style" plans that allow employees to select the benefits that matter most to them.
Flex credits or flexible spending accounts provide employees with a set amount of credits or dollars to use towards the benefits they want. This allows employees to customize a package based on their needs and life stage. 89% of employees want the ability to customize their benefits.
Giving employees choice and autonomy over their benefits selection can lead to greater engagement. When employees have ownership over tailoring their benefits package, they are more likely to understand and appreciate their benefits. Customization also allows employers to provide equitable benefits across diverse employee demographics. With a flexible approach, benefits plans can be adapted as employee priorities shift over time.
Key Considerations for Employers
Canadian employers looking to optimize their benefits offerings should keep several key considerations in mind:
Conduct regular surveys to understand employee needs and preferences. Surveying staff at least annually on their benefits, priorities and satisfaction can provide insight into changes required. Look at trends in the importance of certain benefits over time to adapt offerings.
Benchmark competitors and your industry. Research what peers and leaders in your sector offer for benefits to remain competitive. But also tailor to your specific workforce demographics and business goals.
Manage costs through careful plan design. Conduct cost-benefit analysis to identify the most valued benefits. Use plan design elements like copays, deductibles, and premium cost-sharing to balance costs and employee satisfaction.
Communicate and educate on benefits offerings. Clearly explain benefits plans and changes to employees through multiple channels. Promote understanding of lesser-used but valuable benefits.