It’s widely recognized that Canadians aren’t saving enough for retirement and benefits costs are continuing to rise. In Alberta, the story’s largely the same, but there are subtle differences compared to the rest of the country, especially with regards to work-life balance and wellness initiatives.
Our 2013 Benefits + Pension Survey, of mostly Alberta-based organizations, finds that 44% of organizations with a pension or group savings plan indicated their employees do not take advantage of the full matching contributions available to them.
While some employees simply can’t afford to contribute to these programs, we believe that many others can and would contribute with appropriate financial education.
Also troubling is that 28% of respondents don’t offer their employees access to a group retirement savings vehicle. Among organizations with less than 50 employees, this increases to 51%.
While pooled registered pension plans (PRPPs) are starting to gain traction, as we’ve seen in Quebec, British Columbia, Saskatchewan, Alberta and most recently Ontario, it remains to be seen whether they will have much of an impact on improving this situation.
Work-life balance
Other key survey findings show that half of survey respondents provide their employees with flex days, in addition to vacation and holidays. And of these organizations, 53% provide more than five days annually.
Albertans have built a reputation of working hard and playing hard. With 50-plus hour work weeks becoming the norm for many salaried non-union employees, time off to recharge our batteries has never been more important. This year’s results highlight the importance that organizations have placed on supporting balanced lifestyles for their employees.
Health and wellness
Although Alberta is in a tight labour market, only 25% of respondents are planning to make changes to their benefits in the next 12 months. Of those forecasting changes, 69% plan to make program enhancements, mostly by adding flexibility; and 29% by introducing wellness programs.
It’s encouraging to see more organizations focusing on wellness programs as only 35% of responding organizations currently provide any kind of wellness program and of these organizations 41% have an annual budget of less than $500. Many organizations spend a tremendous amount of money and resources preventing work-related illness and injury but do little or nothing to reduce unhealthy behaviours that lead to disease, which has had a profound impact on our benefits programs costs and the healthcare system.
In order to combat rising benefits costs over the long term, it will be critical for organizations to address the root health issues of their employees by encouraging healthy lifestyles and changing employee behaviours.
While Alberta employers face many of the same issues as the rest of Canada, the competitive labour market necessitates that they do more to attract and retain workers. Higher salaries aren’t always the answer for white collar workers. However, offering group retirement plans and educating employees about their financial options as well as more balanced work schedules and wellness initiatives will go a long way.