Canadian employers frequently make employee benefits decisions based on incomplete data, missing opportunities to boost engagement and retention, according to a new report from HUB International Limited.
The insurance brokerage firm’s 2025 Canadian Workforce Vitality Gap Index found that organizations often act on assumptions about employee preferences rather than reliable data, according to the company.
“Canadian organizations are doing their best to attract and retain local talent, but our data shows many are acting on assumptions about what employees actually value, rather than reliable data,” said Terri Botosan, president of employee benefits, retirement and life at HUB International Canada.
Economic pressures increase stakes
The data gaps create business consequences including stalled recruitment, declining retention and reduced productivity, according to HUB. The economic climate intensifies these challenges as employers and employees monitor spending amid recession concerns.
Faizal Mitha, chief sales and chief innovation officer at HUB International Canada, said traditional surveys may not capture employee needs accurately. “Surveys are only as good as the questions they ask—and the lens through which the answers are interpreted,” Mitha said.
Key research findings
The report identified several gaps between employer assumptions and employee priorities, according to HUB:
About 75 per cent of employees would stay longer with their current organization if benefits were more personalized and comprehensive, but employers are not implementing such programs.
Forty per cent of employees rank flexibility and work-life balance as their top priority, ahead of compensation.
More than one-third of employees report mental health concerns, yet participation in wellness programs remains low.
Despite economic uncertainty, 75 per cent of employers plan to expand benefits programs in the next year.
Call for strategic approach
HUB said the findings demonstrate that higher spending does not automatically create more value for employees. The company recommends organizations examine their benefits design process and use data-driven approaches.
“We’re seeing that the benefits employees most value— like workplace flexibility—could even save companies money on benefits,” Mitha said.
Botosan said better insights can help businesses deliver meaningful benefits without overspending. “This isn’t just a benefits issue. It is a business issue,” she said.
About the company
HUB International Limited operates as a global insurance broker and financial services firm based in Chicago. The company provides risk management, insurance, employee benefits, retirement and wealth management services through more than 20,000 employees across North America, according to HUB.
