Making employee benefits decisions based on incomplete data could be negatively impacting Canadian businesses when it comes to employee engagement and retention, according to a new report released by HUB International Aug. 13.
HUB’s research was aimed at more clearly understanding the differences between employer and employee perspectives on benefits and total rewards. Canadian business decision-makers and full-time employees, across a wide variety of industries, were asked for their opinions on employee benefits in two separate surveys. The research focused on companies with 250 employees or more.
The report, based on this research, is entitled The HUB International 2025 Canadian Workforce Vitality Gap Index, The Workplace Benefits Divide: Bridging Employer and Employee Perspectives through Data-Driven Insights.
Missed opportunities
This report explains that employers often make decisions about benefits based on engagement surveys and benchmarking studies. While these are valuable resources, says the report, “each has limitations that, if not accounted for, result in benefit gaps and missed opportunities to drive engagement, increase productivity and retention.”
For example, the report looked at what employers believe their employees value most. Thirty-three per cent ranked job security first, 31% chose flexibility and 31% compensation and benefits. “In contrast, 40% of employees ranked flexibility and work-life balance as their top value,” found the study.
The research also reveals that about three-quarters of employees say they would be more likely to stay with their current employer if benefits were more personalized. However, “data shows that employers are not implementing the impactful, personalized programs needed for retention,” HUB underlined in a press release announcing the report’s publication.
The study also found that more than a third of employees report mental health concerns, but participation in wellness programs remains low. This indicates that there are gaps in the awareness, understanding or value of these programs, suggests HUB.
Expanding offerings
The report also found that 72% of the employers surveyed plan to make changes to their benefits and total reward programs in 2025. “Of those planning to make changes, 75% are looking to expand their current offerings or add new ones.”
Warning that “more spending doesn't always mean more value,” HUB advises businesses to “take a hard look at how they're designing employee benefits – and why.”
Recommendations
In its report, HUB provided some best practices to get more in synch with employees’ needs when it comes to their benefits. These include surveying employees on a regular basis, at least annually, “to understand their concerns about their benefits and avoid misconceptions about what they value most.”
HUB also suggests capturing employee demographic information in surveys (age, years of service, type of role, family status and postal code). “This data enables more focused analysis of benefit gaps and segmentation of employees.”
Surveys should question employees about what’s happening in their lives to better understand what significant life events need to be supported, adds HUB in the report.
Seek expertise
Seeking additional resources and expertise to help improve insights available through data analysis, is also recommended.
Working with a benefits advisor “who can dig deeper into employee data, provide actionable recommendations, and help implement sustainable strategies that support unmet needs,” is another recommendation.
"With better insights, businesses can deliver what truly matters to their teams – without overspending," states Terri Botosan, President, Employee Benefits, Retirement and Life at HUB International Canada, in the press release. "This isn't just a benefits issue. It is a business issue,” she adds.
