How have benefits and pension plans changed in the last 35 years? In the late ’70s, employees created reports on typewriters, could smoke on the job and probably didn’t think too much about their benefits. Fast-forward to today, and both the office environment and employee benefits have changed dramatically.
As Benefits Canada celebrates its 35th anniversary, we took the opportunity to go back to the source to explore why employers offer employee benefits programs in the first place.
Our 35th anniversary research examined the attitudes and priorities of C-suite and senior executives regarding their pension and benefits offerings: the role they serve in attracting and retaining top talent; the perceived return on investment (ROI); how they fit into the company’s HR strategy and overall objectives; and what’s changed over the years, as well as expectations for these programs going forward.
Overall, it’s a good-news story. Senior executives generally feel positive about employee benefits, with 90% saying they are satisfied with the current state of their employee benefits plans. Furthermore, 87% of respondents feel that benefits have grown to be more important over the past 35 years.
However, it’s no secret that employee benefits are under significant pressure. The majority (65%) of respondents agree that the cost of offering such plans is becoming unsustainable. Close to half (45%) say their plans have changed significantly over the past 10 years, and more changes are expected.
While most senior business leaders are content with their plans for now and recognize their value, it’s clear that the pressure of rising costs is forcing change. Ensuring that those changes aren’t just blind cuts requires demonstrating the value of benefits by proving the ROI, increasing flexibility and turning employees into savvy consumers.
Read on to find out what the research said about:
- Costs in context
- Justifying the investment
- Turning employees into consumers
- Educating for engagement
- The advisor’s role
- Will the PRPP matter?
The next 35 years
The good news is, employee benefits are here to stay. Despite the continuing cost challenges that senior executives face, a mere 4% say they expect benefits and retirement plans to be virtually nonexistent in the next few decades.
Putting costs in context, measuring and demonstrating ROI, introducing flexibility and improving communication are a few ways to create stronger links for senior executives between employee benefits and the financial investment they’re making. And only by starting now can plan sponsors ensure that employee benefits remain sustainable for the next 35 years.
Leigh Doyle is a freelance writer based in Toronto. leigh.doyle@gmail.com
Get a PDF of this article and other special coverage of Benefits Canada’s 35th anniversary.