Times change. People change. Priorities change. Employees, employers and workplaces change. And as business leaders, HR professionals and reams of studies and surveys prove and confirm, job benefits change.
One thing is for sure: employee wellbeing is non-negotiable!
It may not be easy or easy on the bottom line but smart businesses realize that attracting and retaining talent requires looking after employees and managing what people want most. Relevant benefits.
According to a recent State of Work-Life Wellness report from Wellhub, the popular corporate wellness platform, 93 per cent of surveyed employees feel wellbeing to be as important as their salary, 87 per cent would consider leaving a company not focusing on wellbeing, and 77 per cent regularly engage with their employer’s available wellbeing benefits.
It is important and a consensus, particularly in the Calgary workplace.
“Employee expectations have shifted towards more holistic and personalized benefits, especially in light of the pandemic,” says the knowledgeable Melanie Fuller, director of Wellness at Alberta Blue Cross. “According to a report from the Alberta Chamber of Commerce, many workers are prioritizing mental health resources and better work-life integration, influencing how companies structure their benefits.
“The reason why employee health and wellbeing are taking a top spot of concern for organizations today is because of the market and employee demands have changed, forcing employers to re-examine their talent value propositions together with their company’s recruitment and retention strategies, which commonly includes their benefit plan designs.”
Despite the details, clauses and sub-clauses of a company’s group insurance benefits, the key determining factors are personal wellbeing, lifestyle factors, needs and expectations, and the contemporary employee priority of work/life balance.
Denise Higginson is senior vice president, Consulting & Strategy, and Tanya McKechnie is senior vice president, Benefits, at Calgary’s Magna Insurance Group, with more than 350 years of collective insurance expertise, focused on building strategic relationships and supporting the insurance, risk management and claims management of clients.
“There have been many insurance plan and benefits changes in the past five years or so,” Higginson explains. “As employees grew to appreciate the lifestyle and flexibility that came with the COVID-style hybrid work environment, aspects like flexible time and benefits also became more prominent.
“In the workplace, the economy has pushed employees to look for better wages, benefits and flexible work environments that allow a work/life balance and supports their lifestyle and family situations.”
McKechnie points out that “more employers of all sizes are incorporating flex concepts for work/life balance and often defining contribution flex to supplement a traditional benefits plan. Like flexible spending accounts, not just reserved for health items, but wellness items, gym memberships, daycare costs, pet costs and more.”
Many companies now prioritize the well being of employees and designing flexibility into the group benefit plans has become a positive workplace trend. “When an employee is allowed to choose what is best for them, it instantly creates more value for employer benefit spend. When flexibility is added into a benefits plan, there is something for everyone,” Denise Higginson emphasizes.
“Flexibility benefits are one way for an employer to create a culture of supporting employee values and creating a supportive workplace culture.”
Group insurance experts agree about the relevance and unique generational impact of benefits.
“A study by the Conference Board of Canada highlights that Millennials tend to value benefits like flexible work options more than their Gen X counterparts, who often prioritize retirement planning and health benefits,” Fuller says.
Stats and trends show that balancing multigenerational workforces are forcing fast changes in how employers are meeting and addressing employee needs and values, especially about benefits. “This is the first time in our working lives that anywhere from three to five generations may be present in the workforce at the same time,” she adds. “Each generation possesses unique characteristics, values and attitudes toward work, which have been inevitably shaped by their distinct life experiences.
“To successfully integrate these diverse generations into the workplace, companies must embrace changes in recruitment, benefits and culture that actively foster respect and inclusion for a multi-generational workforce.”
Research from the Human Resources Institute of Alberta indicates that many organizations are expanding their benefits packages to include wellness programs, remote work policies and support for mental health.
According to stats from a Benefits Canada survey, more than half of Gen Zers and Millennials rated mental health and health wellness programs as very important benefits, compared to fewer than half of Gen Xers and Baby Boomers. The survey also found Millennials and Gen Z employees were more likely to worry about economic conditions and, as a result, they could be more hesitant to spend additional money on benefits.
Three-quarters of Millennials and almost 60 per cent of Gen Zers said inflation affects their benefit decisions, as does the potential for an economic downturn.
Regardless of employee age, relevant and effective benefits are also undisputably potent retention and recruitment features. Higgins notes that the contemporary benefit offerings are also related to the competition for talent. And the workplace reality that retention is a focus, as younger generations are more likely to change employers multiple times in their careers.
“Benefits are a vital cog in the total compensation offering,” Tanya McKechnie says. “So all things being equal, benefits might be considered a wedge or a tie breaker in the employee decision making process. In a recent industry study of workplace vitality, employees indicated that they are looking for more support form their employer to live a healthier life. There is evidence to show that increasing employee vitality increases productivity.”
With customization and flexibility of today’s employee benefits, one unavoidable challenge for insurers and employers is the impossibility of one-size-fits-all. “The Calgary workplace adjusts and offers a wide range of benefits,” Denise Higginson points out.
“The uptake varies by industry and company size. Larger and predominantly white-collar employers are more likely to have a defined benefit flexible offering. Likely since these style of plans do require a higher level of communication and engagement.”
She cautions that company size can also be a factor. “Defined benefit flex plans can represent financial risk to small and mid-sized businesses, but if done correctly, a flex plan most certainly offers value to an employee by allowing them to choose exactly what works best for them and their family.”
