Three-quarters (75 per cent) of Canadian employers and 66 per cent of U.S. employers say employee productivity is a key focus for 2025, with most planning to align total rewards — specifically compensation — with productivity metrics, according to a new survey by Hub International Ltd.
The survey, which polled 900 employers across North America, found roughly half (49 per cent) are highly confident — and 33 per cent cautiously optimistic — about their company’s performance and prospects for 2025.
The majority (92 per cent) o employers said they have a comprehensive employee benefits strategy and roughly 40 per cent said they’re planning to make compensation adjustments on a market-by-market basis to address areas of concern.
Read: Canadian employers increasing 2025 salary budgets by 3.4%: survey
Two-thirds (67 per cent) of respondents said they plan to reduce the cost of medical benefits in 2025. Two-fifths (41 per cent) of U.S. employers said they’re focusing on making changes to human resources policy, while a similar percentage (40 per cent) of Canadian employers said they’re focusing on major plan changes. Overall, 61 per cent of all respondents said they’re reducing operational costs to maintain their employee benefits.
Nearly half (45 per cent) of employers said they’re planning or implementing strategic partnerships, while 43 per cent are planning or implementing merger and acquisition activities and 35 per cent are planning international expansions.
Two-thirds (35 per cent) of employers cited artificial intelligence as a key priority most likely to positively impact profitability in 2025, up nine per cent from 2023. Among these employers, 53 per cent said they’re ready to move forward with their AI strategy.
Read: Survey finds Canadian employers looking at AI to enhance worker productivity, but concerns remain