As the labour market tightens and competition for talent reaches new heights, companies are revisiting their benefits in order to attract and retain quality employees, according to a survey.
A poll of over 2,100 payroll professionals by the Canadian Payroll Association (CPA) ranked the frequency of all 39 categories of taxable employee benefits offered in Canada, and the results suggest that employers are reacting to the shifting labour market.
Group term life insurance continues to be the prevalent benefit among Canadian employers, offered by 61%. Interestingly, motor vehicle allowances are second, at 46%, with tuition fees and disability benefits tied for third at 42%, and professional membership dues following closely at 39%.
“Drivers are very aware of rising gas prices and insurance premiums, and a benefit that offsets some of this pain is very attractive,” explains Richard Rousseau, chairman of the CPA. “In the future, we’ll probably see transit passes being offered more and more as gas prices continue upward and employees want to work for ‘green’ companies.”
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The fact that tuition fees and professional membership dues are in the top five perks shows that employees want to improve their credentials, according to Rousseau. “What this says is that Canadian workers appreciate professional development opportunities,” he remarks. “They want to continue to learn and grow on the job.”
The relatively high importance placed on counselling for employees (21%) is significant, according to Patrick Culhane, CPA’s president and CEO. “This probably reflects two positive trends,” he explains. “Employers are recognizing the detrimental effects of a stressful work environment and are taking steps to counter it. As well, people are more open now to using these services because there seems to be less stigma associated with mental health issues today.”
Steven Van Alstine, vice-president of compliance programs and services at the CPA, says the survey results are proof that competition for talent is affecting the way companies approach taxable benefits. “Organizations are seeking ways to set themselves apart from the competition through the taxable benefits they provide.”
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