Group Benefits

Half of Canadians Plan To Search for New Job 2024

According to a new survey by Robert Half Canada Inc., 50% of Canadian employees say they’re planning to search for a new job in the second half of 2024 which is up from 41% in the same period last year.

The survey polled 600 workers and more than 200 hiring managers and found the main factors driving workers to seek new jobs were higher salary (60%), better benefits and perks (50%), more flexibility (32%) and a higher-level title (31%).

Employers need to ensure compensation packages, including benefits & perks, are competitive within their industry sector.

Merit Increases Average 3.2%

Another new survey by Mercer Canada, which polled 400 employers, found the average national merit increase was 3.2%, slightly above November 2023 projections of 3.1%. Almost half (48%) of respondents indicate they’re giving off-cycle increases on an as-needed basis for a variety of reasons including, promotions, retention concerns, internal equity and market adjustments.

Canadians Face Barriers to Healthcare While Employer Costs Increase

According the Green Shield Canada’s inaugural Health Outcomes Report, Canadian employees continue to face barriers to access healthcare while health costs to employers rise. The report also found a need for better digital health solutions in the workplace. Mental health claims increased by 132% while chronic disease-related drug claims increased by 14%.

Other highlights from the report are younger generations are showing a strong appetite for digital care with those aged 25 to 34 leading adoption for mental health and telemedicine services. For EAP users, 90% chose to access virtual appointments last year while more than 75% want in-person or telephone appointments.

Plan sponsors need to make sure their providers have health outcomes at the centre of what the provider is doing so the plan sponsor can measure outcomes and ROI.

Claims for Obesity Drugs Increased 42% in 2023

A new report by Manulife Financial Corp. also indicates the use of obesity medications have increased by 92% since 2020. The report was based on aggregate claims data and found more women using obesity drugs than men (79% compared to 21% respectively). By region, Ontario (61%) outnumbered other provinces in terms of percentage of claimants and also surpassed the national average for percentage of claimants in 2023 (55%).

The report also found 32% of employees are at risk of developing a chronic condition based on their body composition and obesity has a correlation with other comorbidities, such as cardiovascular disease and sleep apnea.

Can An Employer Be Liable For Insurer’s Mistakes In Disability Management?

In Knight v. Surrey Place Centre, the Ontario Human Rights Tribunal (the Tribunal) examined an employer’s human rights obligations and the complexities of delegating the duty to accommodate to third party insurers.

The Tribunal wrote:

“If the employer decides to outsource the management of the accommodation of a disabled employee to an agent, the actions or failures of the agent do not lessen or alter the employer’s obligations”

In the Knight case, the Tribunal held that the employer had failed to accommodate the employee’s disability in how the insurer handled the accommodation process, ignored or downplayed the employee’s medical evidence, failed to adjudicate the employee’s request in a timely manner and failed to communicate their findings to the employee properly. Notably, even though the employer had outsourced disability management to a third-party insurer, that did not lessen their obligations.

Group Savings

Canadians Struggle With Retirement

A study conducted by the Canadian Association of Retired Persons (CARP) for Sun Life reveals that one-third of Canadians struggle with retirement planning and 75% believe their cost of living negatively affects their retirement savings. More than half of respondents fear they lack enough money to retire.

Digitally engaged employees fare better in their retirement savings with average balances 230% higher than those not engaged ($123,800 versus $51,800). These members contribute 61% more to their savings accounts ($8,700 versus $3,400) and are twice as likely to maximize an employer match (61% compared to 30%). Digital engagement also leads to more frequent lump-sum contributions and fewer withdrawals from savings.

Legislative

CRA Exempts GST/HST on Benefits

As of June 20th, the Canada Revenue Agency (CRA) no longer requires certain psychotherapists and counselling therapists to collect GST/HST on their services. These practitioners do need to meet the following criteria:

• Licensed with a provincial body that regulates psychotherapy services (regulated in Ontario) or counselling therapy services (regulated in New Brunswick, Nova Scotia and Prince Edward Island)
• Operating in a province without a regulatory body but holding equivalent qualifications required in a regulated province
• Providing services within the scope of practice defined by the profession in the regulated province

This update applies to providers outside Quebec so those located in Quebec should contact Revenu Quebec for relevant information.

Quebec’s New Pension Legislation

Under Quebec’s pension and benefits laws, employers are required to make a voluntary retirement savings plan available to their employees. This legislation also prohibits “orphan” or “grandfathering” clauses that distinguish pension or other benefits available to employees based solely on an employee’s hiring date.

Quebec’s Voluntary Retirement Savings Plan (VRSP) Act applies to businesses with 10 or more eligible employees who are aged 18 or older and have at least one year uninterrupted service in the province. These businesses must make a VRSP available to their employees and automatically enroll them in the plan.

Alternatively, the legislation allows employers to offer group retirement savings plans and group tax-free savings accounts or traditional registered pension plans.