70% of companies say meeting employee benefit demands is tough amid increasing cost of living
According to a survey conducted by Express Employment Professionals and Harris Poll, 70 percent of companies report that it's “impossible to offer all the benefits employees are currently demanding.”
This comes at a time when nearly half (42 percent) of Canadian companies have noticed an uptick in requests for improved benefits over the past year, largely due to the increased cost of living.
Despite these rising demands, most companies (58 percent) have indicated that their traditional benefits will stay the same, though 36 percent of employers are planning an increase in benefits from the previous year, a significant rise from 2022's 28 percent.
In efforts to retain current employees and attract new ones, 59 percent of companies have made modifications to their benefits, a noteworthy increase from last year’s 51 percent.
These changes include offering cost of living raises (25 percent), increasing paid time off (17 percent), customizable benefit packages (14 percent), additional healthcare incentives such as gym memberships and mental health resources (14 percent), improving retirement plans (13 percent), and/or increasing sick leave (13 percent).
The anticipation of increased turnover is on the minds of employers, with one in three Canadian companies expecting a rise this year.
Another Express Employment Professionals-Harris Poll survey highlighted that better benefits offered by another company were among the top reasons employees are leaving their current roles.
The landscape of employee benefits is evolving from the traditional "one-size-fits-all" approach to more tailored and flexible packages.
“Employee benefits continue to be a driver of employee attraction and retention, as the COVID-19 pandemic did not create just a short-term trend but rather a forward-thinking mindset of what truly is important to employees and their families,” notes Hanif Hemani, an Express franchise owner in Saskatoon, Saskatchewan.
Hemani points out the importance of recognizing the diverse needs within a multigenerational workforce, suggesting that “to be inclusive of employees’ wants and needs, employers have to be much more open-minded.”
The demand for benefits extends beyond traditional health benefits to include offerings such as pet bereavement, flexible wellness, and spending accounts, enhanced mental health supports, paid wellness days, and extended sick day policies.
These initiatives are gaining traction as part of a comprehensive compensation package that balances traditional elements with more personalized options.
Hemani underscores the significance of a holistic approach to employee well-being: “A healthy and happy employee equates to a healthy bottom line for all.” He advocates for a hybrid model that combines traditional benefits with flexible options to meet individual needs.
Despite the gradual easing of labor shortages, maintaining a vibrant company culture remains crucial for business owners.
Bill Stoller, CEO of Express Employment International, emphasizes the cost implications of turnover, which “can cost as much as up to 150 percent of the departing employee’s salary.”
Stoller advises businesses to strategically select benefits that resonate most with their workforce, concluding, “Investing in people is what makes them stay.”
