As an employer, you are likely to have many expectations of the ideal employee. It’s absolutely justified; as an employer, you’re putting forth all of the business's upfront costs, including salaries and other mandatory business expenses. However, employees equally look for businesses that come with benefits, quite literally. Especially when dealing with highly qualified candidates.
Offering employer-sponsored benefits boosts retention, and this is a statistical fact. Attracting and retaining top talent can be critical for businesses of all sizes, including small and medium-sized institutions. Large corporations, too. Offering benefits is a strategic business move, not just a perk that employees enjoy.
In this blog, itec group will explore the key benefits of offering benefits to increase employee retention.
Key Data on Workplace Benefits
According to a report by Statistics Canada, more than 46%of Canadians were living with at least one major chronic illness in 2023. This could include even some of your ideal candidates. In the same year, 13% of Canadian adults had been diagnosed with mood disorders, which is an increase of 10% since 2021. This was observed as a part of a growing trend from 2015. Challenges can sometimes affect
productivity, absenteeism, and, yes, retention. All of which are key concerns.
Ensuring that employees have the tools they need to increase their productivity benefits the business as a whole. If an excellent, top-performing employee needs additional support, providing it helps ensure they remain a valued part of the team.
Employees will always value benefits that support their lives and help them address personal health challenges should they arise. Providing this support helps ensure that health struggles do not completely take them out of the game, thereby improving retention. According to a 2024 survey conducted by Benefits Canada, 41% of those with a benefits plan reported that it was the second most important factor in staying with a specific organization.
Employer-Sponsored Benefits That Help Attract and Retain Top Talent
Any organization that offers employer-sponsored benefits may include coverage for prescription drugs (with exceptions), dental care, vision care, life insurance, disability insurance, and critical illness insurance. It may also include employer contributions to a Registered Retirement Savings Plan (RRSP) or another savings plan made on an employee's behalf. However, it's also important to know that workplace benefits are often viewed as expenses, not investments.
Unlike wage increases, certain benefits are popular with employees because they are often non-taxable, making them cost-effective for both employers and employees. Having said that, with the economy unstable, it's not unreasonable to assume that business owners are feeling strained and unable to offer benefits.
While it is entirely reasonable to recognize that offering benefits comes with additional costs, it has been shown to help retain the kind of employees who help a business rise to the top.
Here are the perks that top employees look for:
● Health and dental insurance: Helps employees manage routine and unexpected health care costs, reducing stress and absenteeism. For employers, this supports a healthier and more focused workforce.
● Life insurance: Provides financial support to an employee’s beneficiaries. For employers, it demonstrates long-term commitment and can support executive compensation strategies.
● Critical illness insurance: Offers a tax-free payment if an employee is diagnosed with a serious condition such as cancer, heart attack, or stroke, helping them focus on recovery rather than finances.
● Disability insurance: Provides income support if employees are unable to work due to illness or injury and helps them navigate recovery. This can support talent retention and reduce productivity disruptions.
● Prescription drug coverage: Covers many prescription medications, giving employees greater financial security and helping reduce absenteeism related to untreated conditions.
● Mental health supports: Provides access to mental health care through in-person services, phone, websites, or secure mobile apps. Early support can reduce burnout while improving morale and retention.
● Health-care spending and wellness accounts: Give employees annual credits to cover eligible medical expenses that are not fully covered by workplace benefits or provincial health-care plans.
● Savings plans: Help employees build financial security for the future, often through employer-sponsored retirement or savings programs.
Providing employer-sponsored benefits to boost retention is an effective way to keep top talent around.
Why Workplace Benefits Matter for Employers
Workplace benefits are a valuable option for employers who do not currently offer coverage but want to enhance their ability to attract and retain top talent. Providing benefits can contribute to improved productivity, stronger morale, and better overall physical and mental well-being among employees. These plans can also help address absenteeism, offer potential tax advantages, and strengthen an organization’s competitive position, supporting long-term loyalty and engagement across the workforce.
● Helps attract and retain top talent.
● Increases workplace productivity.
● Boosts employee morale.
● Supports employees’ physical and mental health.
● Reduces absenteeism.
● Offers potential tax advantages for employers.
● Provides a competitive advantage in the job market.
● Encourages employee loyalty.
● Promotes a healthier, more engaged workforce.
Reducing Turnover Rate with Employer-Sponsored Benefits
When it comes to reducing turnover rates (particularly when it comes to top talent), you need to ensure they feel appreciated, taken care of, and, frankly, that they’re getting a good deal by working with your business.
When looking to lock down the best of the best, you naturally need to offer perks that rival the competition; this doesn’t mean you have to offer them all, but offering the ones that employees often seek out could bring in more desirable candidates.
Here are some of the most desirable employer-sponsored benefits that top-tier candidates tend to look for:
● Health and Dental Insurance – Helps employees manage medical costs and feel secure about their well-being.
● Retirement savings plans – Employer contributions encourage long-term financial stability and loyalty.
● Mental health support – Access to counselling or wellness programs supports employees through personal and professional stress.
● Paid time off (PTO) – Vacation days, sick leave, and personal days help employees maintain a healthy work-life balance.
● Flexible work options – Remote or hybrid schedules can improve productivity and employee satisfaction.
● Professional development opportunities – Training programs, certifications, and education support career growth.
● Life and disability insurance – Provides financial protection for employees and their families.
● Employee assistance programs (EAPs) – Confidential support for personal, financial, or legal concerns.
The ROI of Supplying Benefits
Supplying employee benefits requires financial investment; long-term returns can be significant for employers, too. One of the biggest advantages is the ability to reduce costly employee turnover. Once an employee leaves (whether due to personal reasons or new opportunities), businesses often face a range of expenses related to recruitment, onboarding, and training.
Employers often must advertise job postings in online spaces that are oversaturated, especially with the implementation of AI. They’ll need to conduct interviews and dedicate their own internal resources to bring a new employee up to speed. During this transition period, productivity can decline as the team adjusts to the changes. Often, employees will need to step up to cover the tasks of the former team member, meaning their own projects may suffer. This is why it’s essential to offer benefits and perks to keep turnover low.
Additionally, when experienced employees leave an organization, they often take valuable institutional knowledge with them. Their understanding of workflows, clients, and internal systems can be difficult to replace quickly, leaving your team somewhat stranded. This loss can disrupt team efficiency and slow down operations. Providing strong employer-sponsored benefits can help reduce these risks by encouraging employees to remain with the company longer.
It is also important to recognize how workforce expectations have evolved in recent years. Many employees today place a strong emphasis on the overall quality of life when choosing where to work. While competitive wages remain important, benefits that support mental health, financial planning, and flexible working arrangements are increasingly valued. These factors often influence whether employees decide to remain with an organization for a long time.
Different stages of an employee’s career can also shape what they look for in a benefits package. Younger professionals entering the workforce may prioritize professional development opportunities, retirement savings support, and wellness programs that help them build long-term stability.
Mid-career professionals, particularly those with families, may place greater value on comprehensive health coverage and insurance options that support their household. By offering a balanced range of benefits, employers can appeal to a diverse workforce with varying needs and priorities.
Itec group is a leading provider of recruitment services that can help connect you with the right people, providing years of professional experience when it comes to attracting and finding top talent. Don’t hesitate to call us today.
