Can you believe it’s been 35 years already? In honour of Benefits Canada’s 35th anniversary, we decided it was time to go back to our roots: to explore why employers offer benefits programs in the first place, as well as their perceived value by business leaders. We surveyed more than 200 C-suite and senior executives to get their views on employee benefits, the return on investment (ROI), how the landscape has changed and how it may evolve in the future. (You’ll find highlights of the results in this issue.)
In a time of general doom and gloom, the results shone a bright light on our industry. It’s encouraging to see that the C-suite really does value and prioritize employee benefits. The vast majority (87%) of respondents agreed that workplace benefits have grown to be more important during the last 35 years; 91% said it’s important to offer employees a health benefits plan; 75% said it’s important to offer employees a retirement savings plan; and 88% believe employee benefits are important in recruiting and retaining employees. And they’re willing to invest in these plans going forward: only 4% of respondents believe that benefits plans will be virtually non-existent 35 years from now.
But it’s not all sunshine and rainbows. A significant proportion—70%—identified cost as the chief factor in pension and benefits decision-making. And when asked what the biggest challenge of offering benefits plans will be in the next 35 years, 70% said “cost in general” while 15% said “cost versus benefit/ROI.” Clearly, employers are in a difficult position: they want to offer programs to support a happy, healthy workforce, but they’re under constant pressure to keep costs down.
One area of opportunity is helping employers to better understand the ROI of employee benefits. Employee surveys, anecdotal evidence and claims experience were the top methods reported to gauge ROI, but relatively few are measuring it at all. That’s one reason why partnerships with advisors are becoming more important: to keep benefits relevant, rewarding for both employers and employees—and, most of all, sustainable for future generations.
Speaking of future generations, I’m both sad and excited to announce that this will be my last editorial for a while, as I will be going on maternity leave to have my second child. But with acting editor Rehana Begg and the rest of our editorial team on hand, you’ll be well supported. All the best until 2013!
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