Canadian employers risk missing the mark on engagement, retention, and risk management by building benefits programs on incomplete data, according to HUB International Limited’s 2025 Canadian Workforce Vitality Gap Index.
The report reveals a sharp disconnect between what employers think employees want and what employees actually prioritize, with flexibility and work-life balance topping the list ahead of salary and traditional perks. Nearly three in four employees said they would be more likely to stay with their current employer if benefits were more personalized and comprehensive.
At the same time, over a third of employees reported mental health concerns, yet participation in wellness programs remains low, indicating gaps in awareness or perceived value.
Terri Botosan, president of employee benefits, retirement, and life at HUB International Canada, said many organizations make benefits decisions without fully understanding employee needs, which affects retention and engagement. Traditional surveys and industry benchmarks, she noted, often fail to capture the nuanced priorities of diverse, fast-changing workforces.
The report comes as economic pressures and a potential recession prompt employers and employees to scrutinize spending. HUB International found that 75% of employers plan to expand benefits in the coming year, but without data-driven insights, investments may not achieve maximum value or mitigate risks effectively.
The index urges organizations to adopt a strategic, evidence-based approach to benefits design, aligning offerings with employee priorities.
For insurers, this trend highlights the growing importance of data-driven plan design, risk assessment, and proactive engagement strategies to manage exposure, enhance client satisfaction, and support workforce retention.
Botosan emphasized that employee benefits are no longer just an HR concern but a business and risk management issue, with implications for both employer costs and insurance performance.
