Benefits 101

If you’re a Canadian employer, we’re sure it’s no surprise to you that your employees need extra support more than ever. We’re getting close to being a year into the pandemic, and the economic ups and downs created by public health concerns have had a serious effect on the financial health of millions of Canadians. Even many of those who had diligently saved money pre-COVID and practiced strong financial habits have seen their savings dwindle by now, and those who were less prepared are definitely feeling the financial sting of lockdown. While it goes without saying that you’re already supporting your employees by paying their wages, your employees need a benefits package too.

If you’re on the fence about offering benefits due to their cost, it’s important to consider the opportunity cost you’ll lose on a long-term basis if you don’t offer them. You certainly save the immediate cost of covering benefits for your staff (and avoid paying a figure that might grow rapidly as your business expands), reducing your expenses in the present. However, you’ll end up paying down the line when it comes to metrics like employee engagement and retention. Do you have a couple top-notch team members right now that you’d like to keep employed for as long as possible? If you’re not offering them any perks except their salary, they will inevitably find an professional opportunity that offers them more and take it. Or, are you paying your staff high wages but dominating their schedule, leaving little room for personal time away from work? You may be supporting them well financially, but eventually that kind of pace will cause anyone to burnout, meaning your team members will inevitably look for an new organization that offers them more flexibility. You can’t prevent all your employees from eventually moving on, but by declining to acknowledge benefits (or the lack thereof) as a vital element of your relationship with your team, you’re undoubtedly increasing your organization’s turnover rate and squandering opportunities to increase engagement.

Benefits, particularly benefits that require a financial investment on the part of the employer, are an excellent way to put action behind your company’s values and show your staff that you value their contributions to pushing your organization forward. It’s not that benefits that are free aren’t worthwhile to offer, because they are; benefits without a direct cost, like the option to work remotely or on a flexible schedule, can sometimes be the most important benefit in an employee’s life. It comes down to the fact that any company can say that they value their employees, but benefits are the tangible representation of that sentiment. Offering benefits means you’re going the extra mile to prove to your staff that they’re important to you, despite the fact that it’ll eat into the organization’s profit margins.

We wanted to compile some basics on the many different kinds of benefits that you can offer your employees to get your thoughts flowing about what makes sense for your team. Think about how benefits can compliment your business’s specific industry, your ultimate business objectives, your employees’ lifestyles and so on. Get creative when considering your benefits too! If you don’t see something on this list, that doesn’t mean it’s not possible. If you’ve got an idea for something you think your employees would really appreciate, see how you can offer them a consistent employee program that involves that idea.

Bonuses: Straightforward, but effective! If your organization has had a strong year thanks to the hard work of your team, awarding them a boost on top of their income is an excellent way to show your team you value them. This could be a one-time thing, or it could follow a schedule (ex. an annual/bi-annual occurrence). It can also be tied directly to performance, so that employees know they have to “prove” they’ve earned their benefit for the year.

Childcare: Any kind of benefits that offer employees some form of support with childcare are huge incentives for people with young children. This could take on a number of forms, such as a pool of money for an employee to help cover their childcare-related costs or offering a company childcare program. These forms of assistance can make a huge impact on a young parent’s bottom line, and would be a very attractive company perk for them.

Company discount: Most companies that sell goods offer this already, but if your organization sells a tangible product or service, offering your employees a generous discount on them just makes sense. Employees that actually use your product and/or service are going to be able to sell it to your customers more effectively than those who don’t. It also serves as a clear “thank you” for their work. However, be cautious when determining how much to give; despite the fact that a small discount is still a discount, offering your team something prohibitively small (ex. a 5% discount at a clothing store) may read as being cheap, and accomplish the opposite of what you intend it to.

Commissions: Again, a straightforward benefit, but effective. If you’ve got a sales team, offering them a commission on every sale made is an excellent way to add an extra level of value to their position while also boosting their productivity (and sales for your business). An employee that is encouraged to sell by the promise of proportional profit can be an extremely useful tool for your business.

Corporate events/vacations: Though these generally involve a significant financial commitment on the part of the employer, hosting events or company vacations for your staff is an excellent way to differentiate your business from your competitors and show your team you value them. Events, for example, could include things like a company carnival or annual party where everyone gets a chance to socialize and let loose outside of a professional setting. Or, larger organizations sometimes opt to cover the costs of an all-inclusive company vacation for some or all of their staff. Though this is inevitably a huge investment, organizations that do it praise company vacations for boosting morale and engagement, allowing people from different departments to get to know each other and giving everyone the chance to reflect on the year behind them and what’s ahead. These kinds of events can be huge in terms of boosting employee engagement, so if you work for an organization that can afford to, this is worth a thought.

Dog-friendly office: If you still have an active office environment or plan on having your organization return to the office post-pandemic, it’s important to note that having a dog-friendly office is often seen as a major benefit to pet owners. Without that option, many dog owners have to shell out on care for their pets for while they’re at the office (in the form of dog walkers, dog daycare and so on). Allowing employees to have their dogs at work means they can skip on those costs, while also enjoying the mood boost of having their dogs around all day!

Employee share plan: Another way to offer your employees a greater degree of financial support is to offer them the opportunity to buy shares in your company. This is a clear benefit for your employees, but also for you as an employer. An employee that has money invested in your organization, even if it’s only a small amount, has a vested interest in your business’s success. This kind of tangible financial attachment to the health of your organization can help them stay engaged and working hard to push the organization forward and increase it’s share value.

Flexible dress code: Though this seems minor, this is also a benefit that can go a long way with employees. In many office settings, employees are expected to dress in “business casual” clothing; in reality, that translates to spending lots of money on a number of clothing items that most people don’t wear outside of office hours. Of course, it’s natural to want your employees to still dress in a manner that’s workplace-appropriate and still enforce some level of dress code, but allowing for more flexibility means employees can reduce spending on office–specific items while also enjoying the comfort of their own clothing and the chance to express their personalities at work.

Health insurance: This is self-explanatory, but health benefits are one of the most useful benefits plans you can offer your team (and for good reason). Particularly if benefits can be used to cover the costs of an employee’s family members’ health needs, these kinds of benefits can have an incredible impact on an employee’s life and their resolve to remain in their current position with your organization. Health benefits often include protection against things like disability and serious/life-threatening illness. They can also be expanded to include coverage for extras like dental care, optometry, prescriptions and more.

Life insurance: This is another type of benefit that offers employees a great deal of comfort and peace of mind. Offering your employees life insurance as a benefit means they know their families are going to be secure in the event something ever happened to them, and can provide an incredibly important level of security for an employee’s family in the event a policy must actually be used.

Match-based savings: One of the more cutting-edge ways to offer your staff financial support is to offer them a match-based savings benefits program. Match-based saving works the same way as any other form of contribution matching where employers match a portion of the total amount of money their employee saves (ex. RRSP contribution matching). The major difference with match-based saving is that the money saved by the employee can be withdrawn at a rapid pace and used for anything the employee needs it for (not just retirement). That way, employees can better meet their short-term financial needs and cover the costs of financial emergencies without having to pull from their RRSPs/TFSAs or take on high-interest debt.

If you’re looking for more info on match-based savings benefits, you can check out our Intro to Match-based Saving. QUBER can facilitate a match-based saving benefits program for Canadian employers looking to prioritize the financial wellness of their employees. Click here for more info.

Mental health days: Mental health days are increasingly becoming a sought-after benefit by many employees. A mental health day is the same as a traditional sick day, but separate in that it recognizes being physically sick and having a tough day due to mental health issues as being two different but equally important issues. Particularly if you offer employees a few paid mental health days, this could be a very effective benefit to offer.

Remote work: Though many of us initially moved to remote work as a direct result of COVID-19, remote work will inevitably remain an incredibly popular benefit for all employers who can offer it. According to Inc., 9 out of 10 workers who are currently remote plan on working remotely for the rest of their careers. Considering that stat, you can be sure that if you’re not offering the ability to work remotely, another employer is doing so (and may be able to pull your strongest team members from you as a result). Remote work, or the ability to work from home, allows employees a great deal of flexibility in how they can accommodate their personal and professional responsibilities, as well as providing them with the comfort of working in their own environment. It also allows them to save money on work day expenses like commuting (whether in terms of gas or transit), coffee, lunches and so on. Beyond the numerous benefits created for your employees, offering remote work (or some degree of remote work, like a few days per week), can also cut down on your overhead costs as an employer in a major way. Days when your team works from home are days where you’re not covering the costs of utilities, Internet bills, and other company costs like lunches or commuting credits (if your organization offers that). Overall, there are still issues to be considered with remote work (ex. ensuring the divide between personal and professional life for your employees stays clear to avoid employee burnout), but it should be clear that remote work is the way of the future!

RRSP/RESP contribution matching: This is what many people first think of when they think of “benefits”. To offer this, you’ll need to pledge to match a portion of your employees’ contributions to their RRSP (registered retirement savings plan). In general, there is an annual contribution maximum set by employers, meaning employees can save up to the government maximum in their RRSP each year (for 2021, that maximum will be $27,830), but will only be eligible for matching from their employer to a certain level. This figure is often tied to factors like the employee’s salary, their seniority within the company, and so on. This is an incredibly important benefit to many people, as they collective difference contributed by their employer over time often ends up being a significant contribution to their retirement fund and allows them to comfortably retire at an earlier age.

Alternatively, though it’s a less popular option, young parents may instead jump at the chance to have their employer contributions go towards their children’s RESP/s (registered education savings plan). At present, it already costs tens of thousands of dollars per year to cover the costs of tuition, books, supplies, student accommodation, food and more for a student to attend a post-secondary program, and that number will inevitably continue to inflate over time. Giving your employees the chance to put money aside for their kids may be seen as preferable by some, and is worth offering.

Scheduling flexibility: Allowing for a fair degree of flexibility in your employees’ schedules is a very attractive benefit to many. It’s estimated that 76% of employees would be more willing to stay with their current employer if they could work flexible hours. This is made much easier of course in remote work environments, but office environments can still allow for flexibility by having a less rigid daily schedule. Everyone is different when it comes to their work style and productivity levels. Some people are extremely productive in the morning, while others work best at night; however, very few people are productive all day long. Allowing allowing your team a greater degree of agency in picking their hours (within reason) might be a major benefit in their lives overall, and has the power to boost your team’s overall productivity levels; morning people will still come in early, while others may enjoy a sleep in a bit but catch up into the evening. This is definitely something worth considering if your organization can accommodate it!

Student loan contributions: For businesses that tend to hire a younger demographic, offering employees help with their student loans would be a huge draw for many. Millenials are going to make up the majority of the workforce in Canada soon, and their collective student debt is a major problem. In a 2019 study by Hoyes, Michalos & Associates Inc., it was estimated that 2 in 5 insolvency filings in the province of Ontario were filed by Millenials, and that this debt was primarily created by student loans. Offering your employees the chance to fast-track paying off their debt as they work for you is an incredible way to offer younger employees a benefit that may have an incredibly positive long-term effect their financial health (not to mention boosting your employee retention rates).

Vacation time: Employers in Canada are mandated by federal law to give their employees 14 days (10 business days) of vacation for every year an employee works for them. However, offering your team members an increased amount of vacation is an extremely attractive benefit to many people (for obvious reasons). Particularly if you offer your team paid vacation (or partially paid) or an increasing amount of vacation dependant on their tenure with your organization, this is the kind of benefit that will keep employees retained for years.

For more on the importance of vacation as a benefit, check out The Value of Vacation.

Wellness account: A wellness account is simply a bank account or pool of money that an employee can use to spend on any health-related costs they incur. Wellness accounts are often tied to a schedule, meaning an employee gets a lump sum to cover a period of time (ex. $1500 per year) that does not roll over into the next period; for example, if an employee spent $1200 of their $1500 this year, they would not get to keep the additional unspent $300 going forward. This is similar to health insurance, but offers employees total flexibility in terms of how they’d like to spend their funds.

We hope this list inspires you to consider what kind of benefits might be best for your team. Remember that investing in your employees lives is investing in your business; despite the fact that offering benefits reduces your profit margin in a direct sense, subsidizing the cost of your employees’ lives creates a huge number of positive effects in the long run. If your team isn’t stressed about money, their health, their kids and more, and know that your organization has a direct impact on facilitating that reduced level of stress, they can devote their focus to their jobs and will thank you for your support. A happy, healthy workforce is always going to make better decisions for your business, and may be exactly what your organization needs to reach the next level of success.

If you’re a Canadian employer interested in adopting an innovative, impactful benefits package to retain your employees, reduce the effects of financial stress in the workplace and set yourself apart from your competitors, match-based saving benefits may be right for your business! QUBER is an industry leader in Canadian match-based savings and can offer employers a customized experience using the QUBER platform to facilitate match-based savings with their employees. If you’re interested in seeing a demo of how QUBER can help strengthen your relationship with your employees, send us an email at contactus@quber.ca or visit our Employers page and send us a message using the contact form found at the bottom of the page.  

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