Why Employee Benefits Matter More Than Ever in Today's Hiring Market
In today's competitive labour market, compensation is about more than salary. Across Canada, employees are increasingly evaluating the overall value of a job offer, including the health, dental, disability, life insurance, retirement, and wellness benefits that come with it. For many employers, a thoughtfully designed group benefits plan has become an important part of attracting qualified candidates, retaining experienced employees, and supporting a healthy, productive workplace.
Benefits Are Part of Total Compensation
Employee benefits form part of an employee's total compensation package. While wages remain important, many Canadians rely on workplace benefits to help cover health-related expenses that are not included under provincial health care plans.
In Alberta, the Alberta Health Care Insurance Plan (AHCIP) covers medically necessary physician and hospital services. However, many common health expenses such as prescription medications, dental care, vision care, paramedical services, and disability income protection are generally not covered through the provincial plan. Many employers choose to offer group benefits to help employees manage these additional health care costs.
Benefits Can Influence Employment Decisions
Research consistently shows that employee benefits influence how Canadians evaluate employment opportunities.
According to Statistics Canada, approximately two-thirds (66.8%) of Canadian employees reported having workplace medical or dental benefits through their primary job in 2024. Coverage is more common among full-time, permanent employees than among part-time or temporary workers.
Recent Canadian survey data has also found that:
76% of employees say benefits are an important consideration when evaluating a job offer.
54% say their benefits package plays a significant role in their loyalty to their employer.
Nearly half report that their benefits positively affect their job performance and productivity.
While every workplace is different, these findings highlight that benefits remain an important consideration alongside salary, workplace culture, career development, and flexibility.
Supporting Employee Retention
Replacing experienced employees can require significant time and resources. Recruitment, onboarding, training, and lost productivity all contribute to the overall cost of employee turnover.
Offering a competitive benefits package can help employers demonstrate their long-term investment in their workforce. When employees feel supported through access to health, dental, disability, and wellness coverage, they may be more likely to remain with an employer over time. Government of Canada guidance also recognizes that wages and benefits together are important tools for recruiting employees and fostering long-term loyalty.
Supporting Workplace Productivity
Employee benefits are designed to help employees access care when they need it. Depending on the plan selected by an employer, group benefits may include coverage for services such as:
Prescription medications
Dental care
Vision care
Registered psychologists or counselling services
Physiotherapy
Massage therapy
Chiropractic care
Disability insurance
Life insurance
Critical illness coverage
Employee assistance programs (EAPs)
Coverage varies between insurers and plan designs, but these benefits can help reduce financial barriers to accessing care that supports employee health and well-being.
Every Business Has Different Needs
There is no single benefits plan that fits every organization. Employers often tailor their plans based on factors such as:
Business size
Industry
Workforce demographics
Budget
Recruitment goals
Employee priorities
Many insurers offer flexible plan designs that allow employers to balance meaningful coverage with long-term affordability.
Reviewing Your Benefits Regularly
As businesses grow and workforces change, benefit plans should be reviewed periodically to ensure they continue meeting both employer objectives and employee needs.
Questions employers may wish to consider include:
Does our current plan remain competitive within our industry?
Are employees using the benefits available to them?
Have our staffing needs changed?
Are there additional coverage options that could better support our team?
Is our current plan still aligned with our budget?
A periodic review can help ensure a benefits program continues to provide value for both the business and its employees.
Final Thoughts
Today's employees often look beyond salary when comparing career opportunities. A well-designed group benefits plan can form an important part of an organization's overall compensation strategy while supporting employee health, workplace satisfaction, and long-term retention.
For Alberta employers, reviewing your employee benefits regularly can help ensure your plan continues to meet the evolving needs of your business and your team. We can help! Reach out to our team to schedule in a meeting to discuss your options.
This article is intended for general informational purposes only and should not be considered legal, tax, employment, or insurance advice. Coverage, eligibility, and plan features vary by insurer and policy. Employers should consult with a licensed group benefits advisor to discuss options appropriate for their organization.
