It’s no secret that the cost of living has jumped significantly in Canada over the last five years.
Between the price of groceries, mortgages/rents and everything else, life isn’t as affordable as in previous years and, with a new/returning U.S. president threatening tariffs on Canadian imports, costs don’t look like they’ll be dropping anytime soon. Living in a border city that relies largely on the automotive sector to fund its tax base, these concerns really hit home for me.
The 2024 Benefits Canada Healthcare Survey found Canadian health benefits plan members are increasingly feeling financially strained, a finding that experts say should be a call to action to employers to include more financial wellness supports in benefits plans.
Read: Plan members’ financial strain a call to action for plan sponsors: 2024 BCHS report launch
Personal finances has remained plan members’ top stressor for the past two years, with the share of member respondents citing it as a source of stress steadily climbing year over year, from 35 per cent in 2022 to 43 per cent this year. Plan members in poor financial health were also more likely to report high to extreme daily stress over the last three months.
While the federal government’s recent GST/HST holiday may have provided a bit of welcome relief, publicity stunts aren’t sustainable long term.
Employer benefits and perks like parental leave top-up, childcare subsidies, onsite meals, parking and commuting support all play a role in supporting employees’ bank accounts amid the current cost of living.
However, it’s not just employees feeling the pinch. The 2024 BCHS found among employers that stated it’s very challenging to provide a benefits plan, overall cost management was the top concern (51 per cent) followed by the impact of inflation (31 per cent), plan members’ increased utilization of their benefits (30 per cent) and their growing expectations of a plan as a condition of employment (28 per cent).
Read: Survey finds 56% of Canadian workers reporting reduced productivity due to financial concerns
Two in five (40 per cent) plan sponsors said it’s more challenging to provide a health benefits plan today than before the pandemic. Forty-six per cent said it was as challenging and 14 per cent felt it was less challenging.
While large employers can more easily provide support and resources to employees, Canada’s small- and medium-sized employers are less able to absorb these costs.
There are other measures that can be taken, which is where workplace flexibility — including flexible schedules and concepts like the four-day workweek — and the continuation of the hybrid/remote office.
These arrangements can’t be applied to every role, but where they can be used, employees have the opportunity to realize savings in commuting, food purchases and childcare.
Read: All generations of employees say hybrid work supports productivity, job satisfaction: survey
There’s also benefits for employers. A 2023 report by York University, which analyzed Canadian employers that implemented a trial four-day workweek, found nine in 10 (90 per cent) said employee productivity either increased or remained the same, while 86 per cent said they’ve noticed improved recruitment and retention.
According to a 2024 survey by Humi, all generations of Canadian workers said a hybrid working arrangement is most conducive to productivity and job satisfaction, led by generation Z (44 per cent) and followed by millennials (36.8 per cent), generation X (30.5 per cent) and baby boomers (30 per cent).
The prospect of increased productivity through hybrid work is particularly important in light of a 2024 survey by the National Payroll Institute. The survey, which polled more than 1,500 Canadian workers, found 41 per cent considered themselves financially stressed and, among these respondents, more than half (56 per cent) said they’re less productive at work due to financial concerns.
While not all employers can provide direct financial support to employees, they can help reduce the burden by adjusting their workplace policies and showing a willingness to innovate.