Today, more than ever, (mostly due to lifestyle and personal priority reasons) employee benefits are being transformed. The benefits of benefits are changing!
It is an undisputed truth of today’s business that a strong employee benefits plan helps to attract and retain employees, builds trust and boosts productivity for business’ most important asset: employees. Personal priorities, individual wants and needs and today’s warp-speed changing lifestyles are redefining the benefits options for many companies.
“With evolving employee expectations, simply having a benefits plan is no longer enough,” says Tony Bruin, senior director, Group & GSI Products with RBC Insurance. “Employers need to understand the key needs of their employee population and how they can best satisfy them with a tailored benefits plan. As the workforce becomes more diverse across age, gender and health needs, employers and group benefits providers have an opportunity to reimagine what modern support looks like.
“We have seen a few big changes emerge over the last five years. First, there has been a significant increase in the use of higher-cost medications, such as biologics and anti-obesity drugs. Also, the average claim amount for paramedical services has increased by 6 per cent over the last five years. This is because provider services, such as massage, physiotherapy and mental health practitioners, have had to raise their costs to adapt to inflationary pressures.”
Bruin continues, “More than ever, employees are looking for a tailored and flexible approach to their benefits coverage. This presents a difficult balancing act for employers who need to determine if they should deliver a benefits solution that is everything to everyone or focuses on specific issues that affect their workforce.”
He points out that, at a time when costs are rising for employees and employers, companies can start optimizing their group benefits by looking closely at their specific workforce characteristics and tailoring plans to ensure equitable and inclusive coverage.
Alberta employees are dramatically changing their benefits wants, needs and must haves; Alberta employers are constantly updating and adjusting benefits options for their employees. It is a vital dynamic of personal wellness and the company’s focus on the health and wellness of employees.
Alberta Blue Cross (ABC) recently released its comprehensive “Creating a High Performing Work Force” benchmarking survey report, highlighting how Alberta businesses are shifting their investments and priorities.
Melanie Fuller is the director of wellness, Catherine Fendall is director of human resources and Tarick Fadel is director of intelligence and market strategy at ABC.
“The report shows that it’s about more than a benefit plan,” Fuller explains. “Companies are making strategic investments (benefits and broader). What is compelling is that the focus on investment has shifted from cost containment or return on investments to broader strategic outcomes such as organizational resilience, productivity, talent attraction and retention, business performance and engagement.”
Fendall notes that the pandemic caused employees to shift their thinking when it comes to their health and benefits. “There is growing demand for personalized, holistic benefits that reflect current life challenges – not just the traditional health and dental plans.”
“At Alberta Blue Cross, we are experiencing some tremendous change in the workplace. Fadel adds, “Employees now want and expect healthy experiences at work, and are more focused on their physical, mental, emotional and financial well-being, not just for them, but for their families as well. This is creating changes in how we design and administer our benefits program and our other employee programs.”
Stress and anxiety, on and off the job, also impact the benefits wants and needs of today’s employees.
“Our recent RBC survey found that the top factors impacting employee well-being are financial security (58 per cent) and sleep quality (46 per cent),” Bruin says. “We also asked Canadians what gets in the way of improving their well-being? The top three responses were affordability issues, lack of motivation and busy schedules. Women were more likely than men to list affordability issues, lack of motivation busy schedules and mental health as barriers to improving their well-being.
“Dental benefits continue to be one of the most sought-after services by employees. This can range from routine cleanings to more costly orthodontics. Mental health coverage is another in-demand benefit, especially for younger generations. The recent RBC Insurance Well-Being Survey showed that 37 per cent of 18-34-year-olds reported being diagnosed or were living with a mental health related disability such as depression or anxiety.”
Benefits specialists point out that, for various reasons, employee benefits are no longer basic or standard.
According to Marie-Chantal Côté, senior vice president with Sun Life Health, “When it comes to employee health, there is no one-size-fits-all approach. Canadians are looking for inclusive health benefits that can meet their needs and support their health through all life stages.
“Our Design for Health Chronic Disease in the Workplace report found that over half of Canadian group plan members are living with one or more chronic health conditions. Chronic diseases are no longer an issue for just those in their 50s and 60s. Many employees in their 30s and 40s (or younger) are now living with one or more chronic conditions. This leads to an increase in the need for chronic disease management – support that goes well beyond a traditional prescription.”
As a direct or indirect consequence, the stats and trends are undisputable. Stress is a critical fact of contemporary life. It impacts physical and mental health, personal well-being, takes its toll in the workplace and costs Canadian businesses more than $40 billion in lost productivity.
Major Canadian studies unequivocally show that personal finances – rising inflation, mortgage rates, increasing costs and meeting everyday money needs – is the leading cause of stress.
Fendall explains that, whether it’s financial or other stressors anxiety is impacting employee needs for benefits.
“Personal stress is significantly impacting what employees want and need from their benefits plan and total reward packages.”
The benefits of benefits are dynamic, but the business of benefits is an unavoidable factor.
“Our economic environment is marked by persistent inflation, rising cost of living and financial uncertainty,” says Fadel. “Employee benefits plans are no longer just a component of a total compensation package. They have become essential financial instruments for both employees and employers. For employees, benefits plans represent a form of financial protection and predictability.
“Coverage for health, dental, vision, and paramedical services reduces out-of-pocket expenses that would otherwise place a significant burden on already stretched household budgets. Now more than ever, benefits plans serve as a financial safety net, protecting household income and safeguarding overall well-being. Wages alone are not keeping pace with inflation or rising household costs, so benefits plans are playing a much more significant role.”
Bruin emphasizes a positive, “By investing in more inclusive and targeted benefits, employers can drive greater equity, boost employee satisfaction, and build healthier, more engaged teams.”
