Canadian employees, like their global counterparts, seek employee benefits that align with their personal and professional goals. However, when given a choice, they should consider whether they value traditional group benefits more or flexible and personalized benefit options.
The Traditional Appeal of Group Benefits
Group benefits have always been a strong part of the employee benefits package. These typically include health insurance, disability coverage, retirement savings options, and similar benefits. These are standardized packages where each employee gets equal coverage.
Employees Value Group Benefits for:
- Comprehensive coverage
- Cost-effectiveness
- Simple and easy to navigate
The Rise of Flexible Employee Benefits
Also known as cafeteria-style benefits, flexible benefits allow employees to customize their coverage based on their requirements. They can use the set amount of benefit dollars for enhanced health coverage with HSAs, mental health programs, alternative therapies, and the like.
Flexible Benefits are Gaining Popularity for:
- Personalization
- Diverse workforce needs
- Adapting to remote and hybrid work
What Do Canadian Employees Prefer?
| A 2023 survey by the Canadian HR Reporter found that 72% of employees would prefer some level of flexibility in their benefits package. |
Recent studies have shown a growing shift towards flexible employee benefits, however, employees with families or ongoing medical needs still prefer traditional group benefits.
What we understand is that employees want a blend of both: benefits that give them the strong foundation that comes with group benefits and the flexibility that enhances employee experience. Employers that offer a mix of both group and flexible employee benefits may have a competitive edge in talent acquisition and retention.
The Future of Employee Benefits in Canada
One-size-fits-all packages are no longer working. With the younger generation entering the workforce, the employee expectations are changing and so are the benefits packages. The ideal employee benefits packages are evolving, and employers that are rethinking this approach are heading in the right direction.
What about you? Do you prefer the stability that comes with the group benefits or the customization that comes with the flexible benefits?
Share with us in the comments below.
Disclaimer: The information provided in this blog or in any linked material is not intended and should not be considered a substitute for medical advice, diagnosis, or treatment. For holistic health advice and consultation, visit My Well Self.
