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Canadian Employers’ Views on Employee Benefits, Part 2

Author

Yuliya Esipov
Associate Research Director, Workplace Benefits Research
LIMRA and LOMA
yesipov@limra.com

September 2026

Employee benefits have undergone a significant transformation in recent years, with organizations placing greater emphasis on their role in supporting workforce well-being and overall business performance. In the August issue of MarketFacts, we explored how Canadian employers are adopting a more strategic approach to benefits planning — including a stronger focus on alignment, evolving priorities, and the integration of benefits programs. In this second installment, we examine how these shifts are influencing plan design, with employers increasingly exploring new approaches that offer greater flexibility, personalization, and more effective delivery of benefits programs.

Building on these shifts and ongoing integration efforts, employers are reexamining how benefits are structured and delivered. Traditional “packaged plans” once dominated the market, offering employees a predetermined set of benefits with limited flexibility. In 2019, 6 in 10 employers preferred this approach.

That preference is gradually changing. Today, organizations are experimenting with a wider range of plan designs that provide employees with greater choice and flexibility. Some employers have adopted cafeteria-style programs that allow individuals to allocate benefit dollars according to personal priorities. Others offer modular designs that enable employees to select additional coverage options while maintaining a common core package.

What is most striking is not the emergence of a single dominant model, but the growing diversity of approaches. Employers are recognizing that workforces are increasingly heterogeneous, encompassing different life stages, family responsibilities, health needs, and financial circumstances. As a result, benefits strategies are becoming more adaptable and responsive.

This evolution reflects a broader shift away from standardization toward employee-centered design. Rather than assuming the same package will meet everyone’s needs, employers are looking for ways to offer meaningful flexibility without introducing unnecessary complexity.

The Importance of Personalization

Closely connected to this trend is the growing interest in personalization. Employers increasingly recognize that employees value benefits that reflect their individual circumstances and priorities rather than a uniform set of offerings.

LIMRA’s findings indicate that approximately 8 in 10 employers that support personalized benefits are willing to invest additional resources to make those programs available. This willingness suggests that personalization is being viewed less as a luxury and more as a strategic investment in employee satisfaction and engagement.

Personalization can take many forms. Some organizations offer voluntary benefits that employees can choose to purchase based on individual needs. Others provide targeted wellness initiatives, financial education programs, or flexible coverage options designed to address common life events and challenges.

However, personalization also introduces new responsibilities. Employers must ensure that choices are understandable, equitable and accessible. Providing more options can improve employee satisfaction, but only if employees have the information and support needed to make informed decisions. The challenge is not simply offering choice — it is designing experiences that help employees navigate those choices with confidence.

Behind Benefits Delivery

Behind every benefits decision lies a less visible but equally important consideration: operational execution. Even the most thoughtfully designed benefits program can fall short if the underlying systems and processes are difficult to manage.

Benefits administration involves far more than selecting plan features. Employers must coordinate technology platforms, vendor relationships, employee communications, regulatory compliance, enrollment processes, and ongoing support. These operational requirements carry significant costs and increasingly influence strategic decision making.

For many organizations, particularly smaller employers, outsourcing certain administrative responsibilities has become an attractive option. Carriers and service providers that can bundle multiple functions together may offer efficiencies that internal teams cannot easily replicate.

At the same time, employers remain equally divided on the value of investing in fully integrated technology platforms. Half view technology as essential to delivering a seamless employee experience, while the other half remain cautious about the associated costs and implementation challenges.

This tension reflects a broader reality facing employers today: the need to balance innovation, convenience, and employee expectations against budgetary constraints and operational complexity. Success increasingly depends on finding solutions that improve the employee experience without creating unsustainable administrative burdens.

A New Era

The findings point to a fundamental shift in how employers think about benefits. What was once viewed primarily as a support function is increasingly being treated as a strategic investment in workforce stability, engagement and long-term business performance.

There is no single blueprint for success. Priorities differ across industries, workforce demographics, and organizational size. Some employers focus on attracting scarce talent, while others emphasize financial security, health outcomes, or workforce retention. Yet despite these differences, a common theme emerges: Benefits are becoming an increasingly important component of workforce strategy.

The evolution of benefits is not simply about expanding offerings or increasing choice. It is about creating programs that align employee needs with organizational objectives while remaining sustainable over the long term.

 

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