{"id":930652,"date":"2026-09-29T15:56:52","date_gmt":"2026-09-29T19:56:52","guid":{"rendered":"https:\/\/segic.ca\/?p=930652"},"modified":"2026-09-29T15:57:28","modified_gmt":"2026-09-29T19:57:28","slug":"group-benefits-talent-retention","status":"publish","type":"post","link":"https:\/\/segic.ca\/en\/group-benefits-talent-retention\/","title":{"rendered":"Group Benefits: Why spending more is no longer enough to retain your talent"},"content":{"rendered":"<div class=\"segic-article\">\n<p class=\"sa-intro\">Spending more on group benefits no longer guarantees employee loyalty. Canadian data from 2025 and 2026 show why, and what employers and brokers can do differently.<\/p>\n<figure class=\"sa-video\">\n<div class=\"sa-video__cadre\"><iframe src=\"https:\/\/www.youtube-nocookie.com\/embed\/a9Q8a1W2kdA?rel=0\" title=\"Group Benefits: Why spending more is no longer enough to retain your talent\" loading=\"lazy\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/figure>\n<h2>A $53-billion paradox<\/h2>\n<p>In 2024, health insurance plans generated $65.9 billion in premiums in Canada, 91% of it through group plans, and paid out $53.3 billion in benefits to some 27 million covered Canadians. Benefits paid rose 10.7% in a single year, according to the latest data published by the <a href=\"https:\/\/www.clhia.ca\/en-CA\/media-and-publications\/news-releases\/2025\/Claims-in-Canada-rising-143-billion-paid-to-help-keep-Canadians-healthy-and-financially-secure\" rel=\"noopener\" target=\"_blank\">Canadian Life and Health Insurance Association<\/a>.<\/p>\n<p>Yet barely more than one plan member in two says they understand their plan very well. Employers have never invested so much in group benefits, and a large share of that investment remains invisible to the very people it was meant to retain.<\/p>\n<p>The problem isn\u2019t generosity. It\u2019s how programs are designed, communicated and administered.<\/p>\n<div class=\"sa-tuiles\">\n<div class=\"sa-tuile\">\n<div class=\"sa-chiffre\">$53.3<span>B<\/span><\/div>\n<p>in health benefits paid in Canada in 2024<\/p>\n<\/div>\n<div class=\"sa-tuile\">\n<div class=\"sa-chiffre\">53<span>%<\/span><\/div>\n<p>of plan members understand their plan very or extremely well<\/p>\n<\/div>\n<div class=\"sa-tuile\">\n<div class=\"sa-chiffre\">8.3<span>%<\/span><\/div>\n<p>projected gross increase in health plan costs in 2026<\/p>\n<\/div>\n<\/div>\n<p class=\"sa-note-source\"><em>Sources: CLHIA (2025 edition), Benefits Canada (2025), Aon (2026)<\/em><\/p>\n<h2>What has changed in Canadian employees\u2019 expectations?<\/h2>\n<p>The unspoken deal between employer and employee has shifted. A salary and basic coverage are no longer enough: employees expect their employer to help them through what truly weighs on their daily lives.<\/p>\n<p>According to the <a href=\"https:\/\/www.medaviebc.ca\/en\/insights\/posts\/benefits-canada-healthcare-survey-2025\" rel=\"noopener\" target=\"_blank\">2025 Benefits Canada Healthcare Survey<\/a>, 39% of plan members experience high or extreme daily stress and 25% rate their financial health as poor. The <a href=\"https:\/\/www.telus.com\/en\/health\/press-releases\/telus-mental-health-index-cost-of-living-is-the-number-one-financial-stress-for-63-per-cent-of-workers\" rel=\"noopener\" target=\"_blank\">TELUS Mental Health Index<\/a> (August 2026) adds that 63% of workers rank the cost of living as their top financial concern, and that 28% have no emergency savings to cover their basic needs.<\/p>\n<p>The pressure also comes from family. Again according to TELUS Health, 27% of workers financially support an adult child and 12% care for an aging parent. Among these caregivers, 37% report a financial impact and 32% an impact on their mental health.<\/p>\n<div class=\"sa-message\">84% of plan members believe their employer should actively support their well-being. It\u2019s no longer a nice-to-have: it\u2019s a condition of engagement.<\/div>\n<h2>Why doesn\u2019t the one-size-fits-all program work anymore?<\/h2>\n<p>Most group programs were designed for a typical employee who no longer exists. The same team now includes a young professional paying off student loans, a parent juggling childcare costs and an experienced worker caring for aging parents. Their needs have little in common.<\/p>\n<div class=\"sa-profils\">\n<div class=\"sa-partie\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/09\/icone-jeune-professionnelle-remboursement-etudes.webp\" alt=\"\" width=\"52\" height=\"52\" loading=\"lazy\"><\/p>\n<div>\n<p class=\"sa-etiq\">A young professional<\/p>\n<p>Paying off student loans.<\/p>\n<\/div>\n<\/div>\n<div class=\"sa-partie\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/09\/icone-parent-frais-de-garde.webp\" alt=\"\" width=\"52\" height=\"52\" loading=\"lazy\"><\/p>\n<div>\n<p class=\"sa-etiq\">A parent<\/p>\n<p>Juggling childcare costs.<\/p>\n<\/div>\n<\/div>\n<div class=\"sa-partie\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/09\/icone-travailleur-proche-aidant.webp\" alt=\"\" width=\"52\" height=\"52\" loading=\"lazy\"><\/p>\n<div>\n<p class=\"sa-etiq\">An experienced worker<\/p>\n<p>Caring for aging parents.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>The result is predictable: barely more than half of plan members feel their plan meets their needs, according to the 2025 Benefits Canada Healthcare Survey. The gap also shows up in engagement. The June 2026 <a href=\"https:\/\/www.benefitscanada.com\/benefits\/health-benefits\/60-of-canadian-employees-very-or-somewhat-satisfied-with-current-benefits-plan-survey\/\" rel=\"noopener\" target=\"_blank\">ADP Canada survey<\/a> reports a workplace happiness score of 7.6 out of 10 among baby boomers, compared with 6.8 for Generations X, Y and Z.<\/p>\n<p>A single program for everyone delivers very uneven value. Some members pay, through their contributions, for coverage they will never use, while their real needs go unanswered.<\/p>\n<h2>Do your employees really understand their plan?<\/h2>\n<p>This is a costly blind spot. In the 2023 edition of the <a href=\"https:\/\/www.benefitscanada.com\/benefits\/benefits-communication\/half-of-benefits-plan-members-understand-their-plan-extremely-or-very-well-survey\/\" rel=\"noopener\" target=\"_blank\">Benefits Canada Healthcare Survey<\/a>, 88% of plan sponsors believed they communicated coverage effectively. At the same time, only 51% of plan members said they understood their plan very or extremely well, down from 65% in 2018.<\/p>\n<div class=\"sa-tuiles sa-deux\">\n<div class=\"sa-tuile\">\n<div class=\"sa-chiffre\">88<span>%<\/span><\/div>\n<p>of plan sponsors believe they communicate coverage well (2023)<\/p>\n<\/div>\n<div class=\"sa-tuile\">\n<div class=\"sa-chiffre\">51<span>%<\/span><\/div>\n<p>of plan members understand their plan very or extremely well (2023)<\/p>\n<\/div>\n<\/div>\n<p class=\"sa-note-source\"><em>Source: Benefits Canada Healthcare Survey, 2023 edition<\/em><\/p>\n<p>The 2025 edition shows little improvement: 53% understand their plan very or extremely well and 10% don\u2019t understand their coverage at all. Employers feel it. According to a <a href=\"https:\/\/www.benefitscanada.com\/benefits\/health-benefits\/65-of-canadian-employers-prioritizing-benefits-costs-in-2026-survey\/\" rel=\"noopener\" target=\"_blank\">survey by MBWL International and Normandin Beaudry<\/a> (June 2026), 41% of employers struggle to get their program understood and appreciated, and 36% are held back by manual administrative tasks. We explored this understanding gap in <a href=\"\/en\/hr-2026-your-group-benefits-program-isnt-underperforming-its-misunderstood\/\">an article published in March<\/a>; the 2026 data now show its impact on retention.<\/p>\n<p>The two findings are linked. When administration relies on spreadsheets, emails and PDF brochures, information arrives late, fragmented and hard to find. Members don\u2019t know what they have left to claim, or what is covered before they pay.<\/p>\n<div class=\"sa-message\">A benefit an employee doesn\u2019t understand carries no weight in their decision to stay. The employer pays full price but gets only a fraction of the perceived value.<\/div>\n<h2>Can we meet these expectations without driving up costs?<\/h2>\n<p><a href=\"https:\/\/www.benefitsandpensionsmonitor.com\/benefits\/pharma\/canadian-health-plans-brace-for-83-cost-surge-in-2026-aon-survey\/393022\" rel=\"noopener\" target=\"_blank\">Aon\u2019s 2026 medical trends report<\/a> projects a gross increase of 8.3% in health plan costs in Canada, 6.2 points above inflation. Prescription drugs remain the largest expense, with $16.6 billion in claims in 2024. Paramedical care is also growing quickly, with a 16% increase in mental health and massage therapy claims.<\/p>\n<p>Not surprisingly, 65% of employers have made cost control their priority for 2026. But only 2% are considering cutting their program, and 9% plan to increase the share paid by employees.<\/p>\n<div class=\"sa-aplat\">\n<p><strong>That\u2019s the dead end.<\/strong> Cutting hurts retention. Adding coverage without making it useful raises the bill without improving engagement. The only sustainable path is to better direct every existing dollar toward what matters to each employee.<\/p>\n<\/div>\n<h2>What are successful organizations doing?<\/h2>\n<p>They don\u2019t necessarily spend more. They spend differently, by acting on four levers.<\/p>\n<div class=\"sa-icones\">\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/06\/avantages-optionnels.webp\" alt=\"Optional benefits\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>Personalize without complicating<\/h3>\n<p>A fixed envelope each employee directs toward their own priorities, through a health spending account or a wellness account.<\/p>\n<\/div>\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/06\/sante-mieux-etre.webp\" alt=\"Health and wellness\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>Holistic well-being as the foundation<\/h3>\n<p>Mental health, financial health and caregiver support, treated with the same rigour as physical health.<\/p>\n<\/div>\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/07\/Portail-participant.webp\" alt=\"Member portal\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>A program that\u2019s clear in seconds<\/h3>\n<p>Coverage, balances and claims available on mobile, right when employees need them.<\/p>\n<\/div>\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/06\/segic-donnees-analytique.webp\" alt=\"Data and analytics\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>Steer with data<\/h3>\n<p>Reallocate the budget based on actual usage, then validate with a pilot project before rolling out.<\/p>\n<\/div>\n<\/div>\n<div class=\"sa-niveau\"><span class=\"sa-pastille-num\">1<\/span><\/p>\n<h3>Personalize without complicating<\/h3>\n<p>A health spending account and a wellness account let each employee direct a fixed envelope toward their own priorities.<\/p>\n<ul>\n<li><strong>Health spending account:<\/strong> an annual amount for eligible medical and dental expenses, generally non-taxable federally.<\/li>\n<li><strong>Wellness account:<\/strong> an amount for lifestyle expenses such as physical activity, training or transportation. It is a taxable benefit.<\/li>\n<\/ul>\n<p>The employer keeps control of the budget, and employees get what matters to them. Tax treatment varies by province, notably in Quebec, and must be validated for each program.<\/p>\n<\/div>\n<div class=\"sa-niveau\"><span class=\"sa-pastille-num\">2<\/span><\/p>\n<h3>Make holistic well-being the foundation of the program<\/h3>\n<p>Mental health and financial health go hand in hand. TELUS Health reports that 20% of workers say financial stress affects their productivity, and that 63% want support from their employer for savings and retirement. Easy access to therapy, financial planning tools and caregiver support directly addresses these needs.<\/p>\n<\/div>\n<div class=\"sa-niveau\"><span class=\"sa-pastille-num\">3<\/span><\/p>\n<h3>Make the program clear in seconds<\/h3>\n<p>Members should be able to check their coverage, balance and claims on their phone, without searching. The demand is there: 70% of plan members say they are comfortable receiving personalized health information from their insurer. Communication is no longer an annual campaign, but information available the moment employees need it. See also: <a href=\"\/en\/solutions\/portals-and-digital-journeys\/\">portals and digital journeys<\/a>.<\/p>\n<\/div>\n<div class=\"sa-niveau\"><span class=\"sa-pastille-num\">4<\/span><\/p>\n<h3>Steer with data<\/h3>\n<p>Before adding coverage, you need to know what is being used, by whom and where engagement is fading. A usage data audit, combined with a short anonymous survey, makes it possible to reallocate the budget rather than increase it. A pilot project in a single team then reduces the risk before a full rollout.<\/p>\n<\/div>\n<h2>What role for the broker?<\/h2>\n<p>This shift is redefining the broker\u2019s role. For a long time, their value rested on placing insurance and negotiating renewals. Those skills remain essential, but they are no longer enough.<\/p>\n<div class=\"sa-aplat sa-menthe\">\n<p>Employers need an advisor who designs a complete program: insurance, flexible accounts, mental and financial health support, and data to measure results. A broker who can bring these elements together, without multiplying suppliers or invoices for the client, becomes a strategic partner rather than an intermediary.<\/p>\n<\/div>\n<p>It\u2019s also a response to cost pressure. According to Aon, nearly three quarters of employers expect tough negotiations with their insurers and suppliers. The broker who arrives with usage data and a reallocation plan has a head start. See also: <a href=\"\/en\/who-its-for\/brokers-and-partners\/\">Brokers and partners<\/a>.<\/p>\n<h2>How Segic approaches this challenge<\/h2>\n<p>At Segic, we start from a simple observation: a program\u2019s value depends as much on its administration and the member experience as on what it covers.<\/p>\n<p>The Segic Platform brings together group benefits administration, TPA and TPP Services, and a Benefits Marketplace with Canadian providers. Brokers and their partners can build a personalized program, including a wellness account, without adding to the employer\u2019s workload. Members find their coverage and balances in one place, and the client remains the broker\u2019s client.<\/p>\n<div class=\"sa-icones sa-trois\">\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/07\/Plateforme-Segic.webp\" alt=\"Segic Platform\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>Segic Platform<\/h3>\n<p>Visibility, tracking and better decisions.<\/p>\n<p><a class=\"sa-lien\" href=\"\/en\/solutions\/segic-platform\/\">Learn more<\/a><\/div>\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/06\/services-administration-paiement.webp\" alt=\"Administration and payment services\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>TPA and TPP Services<\/h3>\n<p>Administration, payments and operational support.<\/p>\n<p><a class=\"sa-lien\" href=\"\/en\/solutions\/administration-and-payment\/\">Learn more<\/a><\/div>\n<div class=\"sa-icone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/06\/logo_marketplace.webp\" alt=\"Benefits Marketplace\" width=\"58\" height=\"58\" loading=\"lazy\"><\/p>\n<h3>Benefits Marketplace<\/h3>\n<p>More choice and flexibility for employees and members.<\/p>\n<p><a class=\"sa-lien\" href=\"\/en\/benefits-marketplace\/\">Learn more<\/a><\/div>\n<\/div>\n<h2>In conclusion: retention depends on clarity<\/h2>\n<figure class=\"sa-info\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/segic.ca\/wp-content\/uploads\/2026\/09\/retention-lisibilite-programme-avantages.webp\" alt=\"Manager explaining a plan in confusing jargon to two puzzled employees\" width=\"1920\" height=\"1005\" loading=\"lazy\"><\/figure>\n<p>Canadian employers don\u2019t have a generosity problem. They have a relevance and clarity problem. A one-size-fits-all program that is poorly understood and heavy to administer is expensive and doesn\u2019t build loyalty.<\/p>\n<p>The organizations that win the war for talent won\u2019t be the ones that offer the most. They\u2019ll be the ones that offer what matters to each person, and make it effortless to use.<\/p>\n<div class=\"sa-message\">If your employees had to explain their plan tomorrow morning, what would they say? If the answer worries you, that\u2019s where to start.<\/div>\n<div class=\"sa-cta\">\n<h2>Make your program easier to understand<\/h2>\n<p>Talk to your broker, or see how the Segic Platform makes your program more personalized and easier to manage.<\/p>\n<p><a class=\"sa-pilule\" href=\"\/en\/schedule-a-meeting\/\">Book a personalized demo<\/a><\/div>\n<h2>Frequently asked questions<\/h2>\n<ol class=\"sa-diag\">\n<li><strong>Are Canadian employees satisfied with their benefits?<\/strong><br \/>Partly. According to ADP Canada (June 2026), 60% of employees are satisfied with their benefits, but barely more than half of plan members feel their plan meets their needs (Benefits Canada, 2025).<\/li>\n<li><strong>What is the difference between a health spending account and a wellness account?<\/strong><br \/>A health spending account reimburses eligible medical expenses and is generally non-taxable federally. A wellness account covers lifestyle expenses, such as physical activity or training, and is a taxable benefit.<\/li>\n<li><strong>Why are group benefits costs rising in Canada?<\/strong><br \/>Prescription drugs remain the largest expense, and paramedical care, particularly mental health, is growing rapidly. Aon projects a gross increase of 8.3% in 2026.<\/li>\n<li><strong>How can employers improve employee retention through benefits without increasing the budget?<\/strong><br \/>By personalizing the program, making it easy to understand and use, and reallocating the budget based on actual usage data rather than adding coverage.<\/li>\n<li><strong>What is the broker\u2019s role in modernizing a group benefits program?<\/strong><br \/>The broker designs the complete program: insurance, flexible accounts, well-being support and results measurement. They become the employer\u2019s strategic partner.<\/li>\n<\/ol>\n<div class=\"sa-sources\">\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.clhia.ca\/en-CA\/media-and-publications\/news-releases\/2025\/Claims-in-Canada-rising-143-billion-paid-to-help-keep-Canadians-healthy-and-financially-secure\" rel=\"noopener\" target=\"_blank\">CLHIA \u2014 Benefits paid in 2024 (2025 edition)<\/a><\/li>\n<li><a href=\"https:\/\/www.medaviebc.ca\/en\/insights\/posts\/benefits-canada-healthcare-survey-2025\" rel=\"noopener\" target=\"_blank\">Medavie Blue Cross \u2014 2025 Benefits Canada Healthcare Survey<\/a><\/li>\n<li><a href=\"https:\/\/www.benefitscanada.com\/benefits\/benefits-communication\/half-of-benefits-plan-members-understand-their-plan-extremely-or-very-well-survey\/\" rel=\"noopener\" target=\"_blank\">Benefits Canada \u2014 2023 survey on plan understanding<\/a><\/li>\n<li><a href=\"https:\/\/www.telus.com\/en\/health\/press-releases\/telus-mental-health-index-cost-of-living-is-the-number-one-financial-stress-for-63-per-cent-of-workers\" rel=\"noopener\" target=\"_blank\">TELUS Health \u2014 Mental Health Index, August 2026<\/a><\/li>\n<li><a href=\"https:\/\/www.benefitscanada.com\/benefits\/health-benefits\/60-of-canadian-employees-very-or-somewhat-satisfied-with-current-benefits-plan-survey\/\" rel=\"noopener\" target=\"_blank\">Benefits Canada \u2014 ADP Canada survey, June 2026<\/a><\/li>\n<li><a href=\"https:\/\/www.benefitscanada.com\/benefits\/health-benefits\/65-of-canadian-employers-prioritizing-benefits-costs-in-2026-survey\/\" rel=\"noopener\" target=\"_blank\">Benefits Canada \u2014 MBWL International and Normandin Beaudry survey, June 2026<\/a><\/li>\n<li><a href=\"https:\/\/www.benefitsandpensionsmonitor.com\/benefits\/pharma\/canadian-health-plans-brace-for-83-cost-surge-in-2026-aon-survey\/393022\" rel=\"noopener\" target=\"_blank\">Benefits and Pensions Monitor \u2014 Aon medical trends 2026<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Spending more on group benefits no longer guarantees employee loyalty. Canadian data from 2025 and 2026 show why, and what employers and brokers can do differently.<\/p>\n","protected":false},"author":3,"featured_media":930653,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[94],"tags":[],"class_list":["post-930652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-segic-blogs-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/posts\/930652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/comments?post=930652"}],"version-history":[{"count":1,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/posts\/930652\/revisions"}],"predecessor-version":[{"id":930655,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/posts\/930652\/revisions\/930655"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/media\/930653"}],"wp:attachment":[{"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/media?parent=930652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/categories?post=930652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/segic.ca\/en\/wp-json\/wp\/v2\/tags?post=930652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}