When it comes to attracting and retaining top talent, many employers default to salary as the ultimate bargaining chip. It’s a tangible number, easy to compare, and hard to ignore. But in today’s evolving workforce, compensation is more than just a number on a paycheque. Employees are looking for meaningful, long-term value, and for many, that comes in the form of group benefits.
The Hidden Value of Group Benefits
Group benefits plans offer employees more than just coverage – they provide peace of mind. Whether it’s dental care, prescription medication, mental health support, or access to virtual healthcare, benefits help reduce financial stress, increase overall wellness, and provide a sense of security that a raise simply can’t replicate. While a higher salary may offer short-term satisfaction, a comprehensive benefits package tends to drive greater long-term loyalty and satisfaction.
What Employees Really Want
Studies consistently show that employees often value strong benefits just as much as, if not more than, small or moderate salary increases. That’s especially true among younger generations entering the workforce, as well as those with families or chronic health concerns. With rising costs of healthcare and wellness services, the practical value of group benefits continues to increase, and employees are taking notice.
How Benefits Reflect Company Culture
It’s also important to recognize how benefits reflect company culture. Offering a well-rounded group benefits package signals that your organization is invested in the well-being of its people. It shows you’re thinking beyond short-term productivity and investing in your team’s quality of life – both inside and outside of work. That kind of care doesn’t go unnoticed. In fact, it’s often cited as one of the top reasons employees stay with a company.
Building Long-Term Value on a Budget
For HR teams and business leaders, this creates a powerful opportunity. Rather than constantly chasing competitive salary wars, employers can build long-term value and engagement through benefits that matter. Group plans also allow for strategic flexibility – think wellness spending accounts, employee assistance programs, or paramedical coverage – all of which can be adapted over time to suit the evolving needs of your team.
In economic climates where raises may not always be possible or sustainable, enhancing group benefits can be a cost-effective way to provide meaningful value. Employers can often negotiate or design a plan that fits their budget while still improving employee satisfaction. A small investment in extended coverage or wellness resources can have a much larger impact than a modest increase in base pay, especially when employees feel supported and seen.
Retention Starts with Support
When employees rely on their benefits for healthcare, mental wellness, or family support, they’re less likely to look elsewhere. A paycheque may be easily matched by a competitor, but a personalized, well-structured benefits package that aligns with an employee’s lifestyle is harder to walk away from.
According to a 2024 Workplace Trends & Benefits Report from LifeWorks (now part of TELUS Health), nearly 68% of Canadian employees said that comprehensive health and wellness benefits were a key reason they stayed with their current employer. Meanwhile, organizations that offered flexible, employee-focused benefits saw up to 30% higher retention rates than those that did not.
In a competitive hiring market – especially in sectors facing talent shortages – this kind of retention advantage can’t be overstated. Benefits don’t just help retain employees; they signal to your team that they are valued as people, not just workers. That emotional connection plays a vital role in reducing turnover and strengthening workplace culture over time.
_
Ultimately, the question isn’t whether salary matters – it absolutely does. But when it comes to overall employee value, loyalty, and satisfaction, a strong group benefits plan may have even more staying power. For employers and HR teams, this is an opportunity to lead with care, not just compensation, and to build workplaces where people truly want to stay.
Ready to create a benefits plan that sets your business apart? Get in touch today and let’s design a group benefits strategy that supports your team, and your long-term goals.
