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Canadian Employers’ Views on Employee Benefits, Part 1

Author

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

August 2026

Employee benefits have undergone a significant transformation in recent years. Once viewed primarily as a necessary component of compensation, benefits are increasingly being recognized as a strategic tool that influences recruitment, retention, employee well-being, and organizational performance. As workforce expectations evolve and employers face growing pressure to compete for talent, benefits programs are taking on a more prominent role in shaping the employee experience.

This two-part article draws on findings from LIMRA’s survey of Canadian private-sector employers to examine how organizations are rethinking their approach to benefits planning. Part 1 explores the shift toward more strategic decision making, evolving employer priorities, and the movement toward more integrated benefits programs. Part 2, to be published in the September issue of MarketFacts, will examine how these shifts are influencing plan design, including greater flexibility, personalization, and the operational realities of delivering benefits programs.

In practice, employers are no longer focused solely on providing protection against unexpected events. Increasingly, they are looking for ways to support employees’ everyday financial, physical and emotional well-being while ensuring that benefit programs remain practical and sustainable to administer. The challenge is no longer whether benefits matter — it is how to design programs that create meaningful value for employees while supporting broader business objectives.

Reactive Decisions

Not long ago, benefits decisions were often made incrementally. Programs evolved over time in response to market pressures, employee requests, or periodic plan reviews rather than through a clearly defined strategy. In 2019, fewer than one-quarter of Canadian employers reported having a formal approach to benefits planning.

Today, the picture looks markedly different. A majority of employers now report having an established strategic planning process for their benefits programs, and among larger organizations, formal planning has become nearly universal. Employers are increasingly benchmarking their offerings against competitors, evaluating program effectiveness, and assessing whether investments are producing measurable value for both employees and the organization.

This shift reflects a growing recognition that benefits represent one of the largest workforce investments many organizations make. As costs continue to rise and workforce expectations become more sophisticated, employers can no longer afford to manage benefits as a routine administrative function. Strategic planning has become essential for ensuring that resources are directed toward programs that align with organizational goals and employee needs.

Employer Priorities

Although attracting and retaining talent remain the most frequently cited objectives of benefits programs, employers are pursuing a broader range of outcomes than in the past. Supporting employee well-being, enhancing workplace productivity, strengthening organizational culture, and maintaining competitiveness are increasingly important considerations.

At the same time, priorities vary considerably across organizations. Smaller employers often place greater emphasis on long-term financial protection benefits, reflecting both workforce demographics and a closer connection to individual employees. Manufacturing employers frequently focus on recruitment and retention in highly competitive labor markets, while organizations in construction tend to prioritize health, safety and financial security.

These differences highlight an important reality: there is no universal benefits strategy. Effective programs are shaped by the unique circumstances of each organization, including workforce composition, industry conditions, business objectives, and available resources. The most successful employers are not necessarily those offering the most benefits, but those aligning their offerings with the needs and expectations of their workforce.

A Connected Benefits Experience

One of the most notable developments in recent years has been the movement toward integration. Employers are increasingly seeking ways to connect insurance, retirement, wellness, and financial well-being programs into a cohesive employee experience rather than managing each benefit independently.

The appeal of this approach is straightforward. Integrated programs can simplify administration, improve communication, and help employees better understand the full value of their benefits package. When benefits are presented as part of a broader total rewards strategy, employees are more likely to recognize how different programs work together to support their financial security and overall well-being.

The relationship between retirement and insurance benefits illustrates both the opportunities and complexities of integration. Some organizations are actively managing these programs as interconnected elements of a comprehensive rewards strategy. Others continue to treat them as separate functions with distinct objectives and decision-making processes.

Even among employers embracing integration, difficult trade-offs remain. When asked where they would focus resources if changes became necessary, many employers indicated a preference for preserving retirement programs while directing new investments toward insurance benefits. Yet a significant number of employers who would consider changes to their health benefits (7 in 10 employers) also acknowledged a willingness to reallocate resources from retirement plans to strengthen health, wellness or supplemental coverage if workforce needs demanded it.

These responses suggest that integration is not a destination but an ongoing process. Employers continue to balance short-term employee needs with long-term financial security, seeking approaches that support employees across multiple stages of their lives. Part 2 of this article will explore how employers are rethinking traditional plan design, including the growing emphasis on flexibility, personalization, and the practical considerations involved in delivering these programs effectively.

 

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