The Rising Cost Of Group Benefits

The Rising Cost Of Group Benefits

Due to drug expenses, the cost of group benefits has been quickly increasing. And although this is concerning to Canadian employers, they are still keeping productivity and engagement of their employees a priority. 

A survey for Canadian group benefits sponsors was conducted to identify their Top 10 benefits and workplace priorities. Here are the results:

Top 10 Group Benefits Priorities

1. Escalating drug costs generally 
2. Escalating specialty drug costs in particular
3. Escalating extended health costs generally
4. Chronic illness, effect on plan costs
5. Need to personalize employee benefits experience
6. Rising payroll costs (e.g. minimum wage, CPP contributions)
7. Compliance/governance obligations
8. Cost-shifting – public to private
9. Administrative hassle of employee benefits
10. National Pharmacare discussions

Top 10 Workforce Priorities

1. Employee productivity/engagement
2. Employee wellness
3. Attracting, retaining employees; developing skills for changing business environment
4. Workplace mental health
5. Employee financial wellness
6. Family support obligations, effect on productivity and well-being
7. Chronic illness, effect on productivity
8. Multi-generational workforce
9. Delayed retirement – productivity and performance challenges
10. Delayed retirement – employees working past normal retirement age

Although these top priorities may sound conflicting – it is important that employers find a way to achieve the proper balance of meeting the objectives of the workforce while also ensuring that their employees are valued. A suggested method to find this balance is creating a wellness program such as yoga classes or healthy snacks and lunches which could potentially reduce extended health costs. Another method would be to provide personalized benefits for employees. 

To learn more about employee benefits, call us today at 905-696-9090 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.  

Source: Insurance Business Magazine Canada 

 

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