For companies, offering the right mix of sought-after employee benefits keeps your team happy while improving performance, productivity, and long-term profitability. If you’re wondering how to increase employee satisfaction and productivity, the answer may very well be: offer better benefits.
In fact, according to a survey by Intuit QuickBooks, employees find workplace benefits a key factor in job satisfaction; 68% of small business employees say inadequate benefits directly impact their performance. Additionally, 78% (of that same group surveyed) would consider leaving their job for one with a more appealing benefits package.
For employers in Canada, especially small and mid-sized businesses, a well-designed employee benefits plan is both a perk and a strategic asset that can help your company in numerous ways. In this post, we’ll explore the advantages of offering employee benefits, how they boost business performance, and why now is the time to see your benefit offerings as investments with measurable returns.
Tangible ROI: Lower Turnover, Less Absenteeism, Higher Engagement and Morale
Strategic employee benefits, particularly those that align with your team’s needs, can help reduce absenteeism, decrease turnover, and increase employee productivity and morale. They provide security and peace of mind, allowing your employees to take care of themselves and their loved ones without stressing over its financial implications.
When employees have access to dynamic health insurance, dental insurance, and disability insurance, they’re less likely to miss work due to preventable issues. Moreover, the stress relief of knowing their families are protected encourages a stronger focus at work.
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Higher Job Satisfaction = Higher ROI
What matters to your team can vary by industry. For instance, the type of benefits that matter to healthcare professionals or teachers (such as medical benefits or access to mental health services) may differ from the work insurance that architects and engineers may seek.
Catering to your team’s specific needs and ensuring they’re compensated in a way that provides work-life balance can result in a high-performing team.
Competitive Edge in Talent Acquisition
A strategic employee benefits plan can help businesses attract and retain high-performing candidates. This becomes even more important in industries facing labour shortages or skill gaps.
Candidates are increasingly prioritizing flexibility, work-life balance, and employer support over salary alone. As mentioned above, offering benefits like tuition reimbursement, gym memberships, or relocation assistance can tip the scales in your favour, as you need to prioritize what people on your team truly want…
What Today’s Workforce Wants
Younger employees value holistic wellness programs, mental health coverage, and flexible health insurance plans as part of a comprehensive employee benefits package. These additions reflect a shift in what the modern workforce considers essential, and meeting these expectations is critical to staying competitive.
The same can be true for older employees as well, but with Gen Z and millennials making up the majority of the workforce (and with millennials projected to be the largest Canadian population by 2029), it makes sense for employers to strive to exceed, or at least meet, their expectations. By doing so, businesses don’t just fill seats; they attract people who stay longer, work harder, and align with the organization’s values.
Qualitative Returns: Better Culture = Better Retention
Beyond the numbers, employee benefits create a ripple effect that strengthens hiring and retention. A motivated team is more likely to advocate for the company, mentor others, and contribute to a positive workplace culture, making your organization a magnet for top talent and long-term loyalty.
Flexible, thoughtful, and comprehensive benefits demonstrate to employees that you value and respect their personal lives. This speaks volumes to your current team and all the future talent you’ll hire down the road, with A-Players always looking for top-tier compensation packages!
These softer returns may be harder to quantify, but they’re no less critical to long-term employee retention and organizational success!
Tax Incentives & Cost Efficiency in Canada
Many employers overlook the significant tax benefits associated with offering employee benefits. In Canada, contributions to legally mandated benefits, such as health and dental insurance, life insurance, and retirement benefits, are often tax-deductible for businesses and typically non-taxable for employees, creating a win-win scenario.
Examples of Tax-Efficient Benefits
- Health Spending Accounts (HSAs): 100% tax-deductible for the employer, tax-free for the employee
- Group RRSPs and Pension Matching: Boosts retirement savings while reducing taxable income
- Employee Assistance Programs (EAPs): Qualify as legitimate business expenses, improving mental well-being while providing financial support
This level of cost efficiency allows companies to save money while creating a supportive company culture that prioritizes long-term well-being.
Additionally, businesses benefit from reduced indirect costs. Healthier employees tend to have fewer long-term illnesses, which reduces medical expenses, absenteeism, and turnover. With smart benefit planning, companies can anticipate and manage these costs while enhancing team morale.
What Should a Competitive Benefits Package Include?
There’s no one-size-fits-all formula, but the most common employee benefits in Canada typically include:
- Health benefits and dental insurance
- Retirement plans (RRSPs, pensions)
- Family-planning assistance (such as extended parental leave or IVF reimbursement)
- Life insurance benefits
- Disability insurance
- Wellness programs
- Tuition reimbursement
- Health spending accounts
- Employee assistance programs
- Employee discounts
Offering various options helps eligible employees choose what fits their lifestyle and needs, increasing the perceived value of the total employee benefits plan.
Additionally, employers should consider phased plans that evolve as employees grow with the company. This might include enhanced retirement savings plans or additional coverage based on service and salary history.
Learn more: Choosing an Employee Benefits Plan for Your Business
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KASE Insurance: Helping Employers Design High-ROI Benefit Plans
KASE Insurance works with Canadian employers to create fully customized benefits packages tailored to their team, industry, and budget. Whether you need traditional health insurance, more modern wellness benefits, or robust disability insurance, our KASE team ensures every benefit is purpose-driven.
What Makes KASE Different?
- Deep knowledge of the Canadian regulatory and tax landscape
- Access to a wide range of insurance options from top providers
- Customized plans for small to large employers across industries
- Focus on maximizing the ROI of employee benefits through data-driven recommendations
Learn more: How to Choose a Benefits Broker
Start Seeing Your Benefits as Business Assets
The ROI of employee benefits is undeniable—from improved employee satisfaction to stronger retention, lower costs, and a more productive team.
For Canadian employers, there are also generous tax incentives that make benefit programs even more financially attractive.
Gone are the days of cookie-cutter benefits that don’t motivate or entice today’s workforce. For custom-tailored group benefits, Canada trusts KASE Insurance to provide expertise and solutions that meet the needs of your business today and your workforce tomorrow.
Remember, strategic offering of employee benefits doesn’t just support your people, it supports your bottom line. It’s time to stop treating benefits as an expense and start seeing them as one of your most valuable business investments!
Get in touch today to learn more.