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Insights & advice

The importance of employee benefits

December 2022 – 15 min read

Key takeaways

  • Both the employee and the business gain from employee benefits.

  • There is a whole range of different benefits that employers can offer.

  • Businesses can attract qualified talent by offering employee benefits.

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Importance of employee benefits

Did you know that employee benefitsOpens in a new window are a major factor when it comes to attracting and retaining employees? In Canada, many employers offer a variety of benefits packages, which can include everything from health and dental insurance to Registered Retirement Savings Plan (RRSP)Opens in a new window contributions.

Employees who feel like they’re being well-taken care of by their employer are more likely to stay with the company for the long haul. In addition, employee benefits can improve morale and motivation, as well as increase productivity.

For Canadian employers, if you provide your employees with health benefits, you could see a positive impact in the mental and physical well-being of your workforce.

What are some of the advantages of employee benefits?

As an employer, providing health benefits to your employees can provide many advantages. Some of which can include:

  • Improved recruitment and retention rates. 
  • An increase to productivity. 
  • Improved morale and motivation. 
  • A boost in employee engagement. 
  • Reduced absenteeism. 
  • Enhance work-life balance for the workforce.

What are the most important benefits to offer employees?

The most important benefits that you can offer your employees will depend on your business needs and the types of employees you have. Some businesses might find that providing health benefits is most important, while others might feel that a retirement savings plan is more beneficial to their workforce. Some of the most common employee benefits in Canada can include: 
 
Health and dental insurance
 
Employees will feel supported and covered when it comes to health and dental issues, which can be expensive to address and correct. 
 
Retirement savings plans
 
Your workforce will feel secure with their financial future because they know that they are contributing to a pension or RRSP, etc. Especially if the employer is matching those contributions.
 
Vacation and sick days
 
Your employees will be able to take those mental breaks from work and allocate time to doing the things they love and spending time with family. They could also be less stressed about missing work and not being paid if they are sick.
 
Employee assistance programs
 
Employee Assistance Programs (EAPs) help people that are experiencing personal difficulties outside of work that is affecting work performance. Providing EAP's shows your workforce that you care about their well-being outside of work.
 
Life insurance
 
Providing life insurance for employees will help ensure their beneficiaries are taken care of in the result of death.
 
Long-term disability insurance
 
Providing long-term disability insurance to your employees can help support them financially if they get injured or suffer an illness that results in missed time from work. This is especially beneficial for those occupations that are physically taxing.
 
Parental leaves and wage top-ups
 
When you offer parental leaves and wage top-ups to your workforce, they will feel supported and covered as they take time to start a family. Employees get a percentage of their wage for a certain amount of time while they are on leave with their families.
 
Mental health services
 
It’s important to dedicate substantial focus to mental health awareness in the workplace. When you offer your employees these services, they will feel like their mental well-being is being supported, and that they can take the time they need to address mental issues.
 
Offering a comprehensive benefits packageOpens a new website in a new window to your employees can show that you are invested in their well-being, both in and out of the workplace. This investment can go a long way in attracting and retaining the best employees for your business, and also help keep your business competitive in the job market.

How does offering employee benefits help to attract talent?

It takes hard work to not only find, but also to keep top talent within your organization. In order to attract the finest individuals, businesses need to offer more than just a competitive salary.
 
Many prospective candidates are looking for comprehensive benefits packages that will take care of their health and well-being, both in and out of the workplace, especially when it comes to dental, because dental services are very expensive.
 
Employers who can offer these types of benefits are more likely to attract and retain the best employees because they feel covered and supported in these essential areas of life.
 
In addition, if your employees feel like they are being valued and their well-being is being supported, you could experience an increase in productivity, which could lead to higher revenues. Keeping your employees happy is essential to the overall success of your business.
 
Canada Life offers a wide range of options that can be tailored to fit your needs. Contact an advisor today to learn more about our plans and how we can help you get started. 

What’s next?

  • Your business can save money in the long run and become more profitable by offering employee benefits.

  • Contact an advisor to learn more about how we can help you get started on a comprehensive benefits plan for your employees.

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The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.