The Impact Of Benefits On Employee Experience

As organizations strive to attract and retain talent in an increasingly competitive market, group benefits remain a cornerstone of the employee experience. Yet, according to the 2024 Benefits Canada Healthcare Survey, a disconnect is emerging between how employers and employees perceive the value and adequacy of those benefits.

The good news? There are several quick and actionable ways employers can begin addressing these gaps — and boost employee satisfaction and well-being in the process.

Satisfaction Is Surface-Level

While 75% of employees rate their benefits plan as good or excellent, that satisfaction quickly declines among employees with poorer health. Just 44% of employees who report being in poor overall health are satisfied with their plans. The gap is even more pronounced among those dealing with mental health challenges: only 60% of employees with poor mental health rate their plans highly, compared to 79% of those reporting good mental health.

With 22% of employees reporting a diagnosed mental health condition — such as anxiety or depression — mental health support continues to be a key area of focus. Many employers have made meaningful strides in enhancing mental health benefits, but the employee experience often tells a different story.

Despite improvements, employees report an average of $1,365 in out-of-pocket mental health expenses annually. It’s no surprise, then, that 34% of employees cite personal financial cost as a barrier to improving their health.

Equally concerning, when asked what they do when coverage for a treatment or service runs out, most employees said they stop treatment altogether until their coverage resets in the next benefit year. Others reported stretching their coverage by reducing the number of treatments they access.

These responses highlight a troubling pattern: those who most need their benefits often feel the least supported. This is a critical issue for employers seeking to create a workplace culture that is inclusive, healthy, and genuinely supportive of employee well-being.

Employee Feedback Is Key

Health benefits are the second most important reason employees stay with their employer — second only to salary. Accordingly, it’s essential for employers to ensure their plans reflect employee needs and priorities.

One of the most effective strategies to deliver a meaningful plan is simply asking employees what they want. Well-designed surveys can provide insights into whether employees understand their benefits, how satisfied they are, and what changes they would value most. Beyond modern features like virtual care or fertility support, these surveys can expose areas where communication or design is falling short.

For instance, one employer’s internal survey revealed that most employees didn’t know how to access their Employee and Family Assistance Program (EFAP), and those who did were largely dissatisfied with the service. With that insight, the employer worked with their provider to improve service delivery and raise awareness — a relatively easy fix that significantly improved employee engagement with the program.

When conducted regularly, employee feedback initiatives can help employers make evidence-based adjustments that maximize plan value and relevance.

Education Matters More Than Ever

One of the clearest takeaways from the Benefits Canada survey is that employees who understand their benefits plan — and know how to use it — are far more satisfied with it. However, many still struggle to understand their coverage, and navigating the health-care system is often a challenge. Almost half (47%) of employees who accessed the health-care system in the past year described it as difficult, especially those experiencing high stress or caregiving responsibilities.

For HR professionals, this underscores the importance of clear communication and benefits education. Employees need guidance on what’s covered, how to access services, and how to coordinate benefits with public health care — especially as expectations rise and public systems face growing strain.

Although email remains the most preferred method of communication, employers may consider ways to personalize communication efforts. Employees also rely heavily on the insurer’s website and mobile app so ensuring your benefits provider is delivering accessible, user-friendly information and support is key.

Next Steps

The 2024 Benefits Canada Healthcare Survey highlights that while benefits play a pivotal role in shaping the employee experience, gaps in mental health support, communication, and education are preventing plans from reaching their full potential.

Now is the time to assess your organization’s benefit strategy and take proactive steps toward greater alignment with employee needs. Reach out to your benefits advisor for expert guidance on how to strengthen your plan and support your people more effectively.