Survey respondents say it's been difficult getting support from upper management to introduce flexible benefits, new cost management strategies and changes to retirement plans. (Photo: Shutterstock)
The War for Talent isn't just being fought on U.S. soil. It's also heating up in Canada, and HR professionals there are increasingly taking a more strategic approach to getting C-Suite buy-in for additional benefits to attract workers, particularly for wellness programs and flexible benefits, according to Hub International Ltd.'s report, “2018 Benefits Barometer Canada.”
“Now with an increasingly young and diverse workforce, we are finding that most Canadian companies are looking at benefits as a strategic tool for attracting and retaining talent in a highly competitive market,” says Mike Barone, HUB's president of employee benefits. “Benefits are becoming the most important differentiator for organizations. HR leaders need advisors to help tailor benefits to offer their employees choice and flexibility, and move their organizations toward greater success.”
While HR professionals cite health and wellness programs as top priorities, many say it's been challenging to convince executive management of the connection between wellness and enhanced productivity, according to the report. Indeed, one survey respondent says it's been tough “making top management see the intangible benefits of spending more money on employees' well-being and morale.”
Canadian companies are most likely to implement wellness programs in order to boost employee morale (29 percent) and productivity (23 percent) and reduce employee turnover (22 percent). To meet these goals, HR professionals plan to continue to focus on health and wellness in the future, with their top priorities being to communicate an employee value proposition (39 percent), focus on mental health (32 percent), align safety with wellness (26 percent) and enhance financial wellness (25 percent).
Survey respondents also say it's been difficult getting support from upper management to introduce flexible benefits (24 percent), new cost management strategies (20 percent) and changes to retirement plans (20 percent).
A main reason why many are having trouble getting C-Suite buy-in for flexible benefits is that, if not designed properly, they fail to produce savings, according to the report. Only 12 percent of the survey respondents who have already implemented flexible benefits report a measurable reduction in benefit costs with this approach.
“This relatively low percentage could be attributed to the fact that certain elements of flexible benefits, such as health spending accounts, can reduce costs but other aspects might actually increase utilization, cost and administrative complexity if not designed optimally,” the authors write.
Other key survey findings include:
– Managing both sides of the benefits cost equation is worrisome to HR professionals, with 36 percent citing employee costs as a concern and 32 percent, employer costs. Still, 60 percent believe they have done all they reasonably can to control rising medical costs.
– Nearly half (45 percent) of respondents are taking 18 months or more to plan their benefits, which suggests that many are taking a longer-term approach to their benefits planning.
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
