The Canadian voluntary or optional benefits market is booming, and for good reason. With annual growth estimated at 4-6%, these benefits are becoming a cornerstone of group benefits programs. They provide a direct response to employers’ and employees’ demands for greater flexibility, personalization, and support in an increasingly competitive job market.
Context and Growth Opportunity
An Untapped Potential
Currently, only 48% of Canadian employers offer voluntary benefits to their teams. This low adoption rate, combined with a multigenerational workforce with varied needs, creates a significant opportunity for market players.
Employers adopting voluntary benefits strengthen their ability to attract and retain top talent, especially in sectors where competition for skilled candidates is intense. This is particularly true for small and medium-sized enterprises (SMEs), which seek innovative and affordable ways to enhance their employee value proposition.
Why Are Voluntary Benefits So Popular?
Limitations of Public Programs
While provincial health systems are essential, they do not provide comprehensive coverage. Dental, vision, and paramedical services are often excluded, leaving employees exposed to significant out-of-pocket expenses. Voluntary benefits address these gaps flexibly.
A Diverse and Demanding Workforce
Employee expectations vary by generation and life stage:
- Millennials: Focus on mental wellness and financial solutions like retirement savings or debt repayment.
- Baby Boomers: Emphasis on retirement preparation and extended health coverage.
- Gen Z: Interest in modern benefits like financial coaching or wellness subscriptions.
Voluntary Benefits in Action
Most Popular Products
Key solutions dominating the market include:
Supplemental health insurance (prescription drugs, paramedical services).
Retirement savings plans (Group RRSPs, TFSAs).
Mental wellness coverage and Employee Assistance Programs (EAPs).
Financial coaching services and student savings plans.
Recognition programs and wellness subscriptions.
High-Growth Segments
- Large Enterprises: Focused on enhancing employee engagement by offering options that enrich the overall employee experience.
- SMEs: Increasingly adopting these programs to remain competitive and retain talent in a labor market short on qualified candidates.
Segic Technology: A Strategic Solution
To maximize the efficiency and adoption of voluntary benefits, technology plays a crucial role. Segic stands out with its innovative and intuitive platform for delivering benefits through a seamless self-Onboarding system.
How Does Segic Make a Difference?
- Increased Flexibility: The platform delivers both mandatory and optional benefits simultaneously, offering a turnkey solution.
- Personalization: Each participant can choose products that best meet their needs, whether it’s supplemental health coverage or wellness services.
- Ease of Use: With our self-Onboarding system, employees can easily manage their benefits, boosting satisfaction and engagement.
A Strategic Investment for Employers
Voluntary benefits are no longer a luxury—they are a strategic necessity. Employers who adopt these solutions reap multiple rewards:
- Talent Attraction and Retention: Employees value options that enhance their overall well-being.
- Stronger Engagement: A comprehensive and flexible benefits offering demonstrates a commitment to employees’ needs.
- Cost Reduction: These benefits are often employee-funded, providing an affordable way to enrich group benefits plans.
Voluntary Benefits—An Opportunity Not to Be Missed
With a growth potential estimated at several billion dollars in Canada, voluntary benefits continue to gain importance. Thanks to advanced technology solutions like those offered by Segic, employers can not only meet employees’ expectations but also position themselves as leaders in a competitive market.
