Employees who work at small businesses across Canada would rather have more or better benefits than extra money in their pocket, a new survey from Blue Cross suggests.
A 2022 poll conducted by the insurance provider shows 76 per cent of respondents across Canada would leave their current jobs in favour of one with a benefit plan, and 73 per cent would stay at a job with benefits even if it meant making more money elsewhere.
In Manitoba, employees preferred benefits to a $25,000 raise.
“We are seeing that not only do benefits help increase retention and attraction for employees to an organization, but it impacts the loyalty and the overall morale. So (it is) really important that that is offered,” said Marnie Klimack, manager of the group sales division at Manitoba Blue Cross.
The online survey fielded 2,086 small business decision-makers and employees which found a majority of them see a benefits plan as being important to their overall health and well-being.
The survey found one in eight small businesses were losing employees to workplaces which offered a more comprehensive benefits plan.
Klimack said the pandemic not only shifted employees’ mindsets to prioritize their overall wellness, but the job market is more competitive.
“That’s a really, really important way that employers can get employees in the door and have them stay. And not to mention it’s a tax-effective way to increase their compensation,” she said, adding some businesses can’t afford not to include benefits in their job offers.
“If you can provide benefits and retain existing employees, especially the good ones, it’s really important to be able to offer something. So there may be some upfront costs, but what isn’t recognized, sort of the soft costs that go along with that.”
Brianna Solberg with the Canadian Federation of Independent Business said while the survey results aren’t necessarily surprising, some small businesses simply can’t afford it.
“We’ve had business owners say that wage costs, fuel and energy costs and tax and regulatory costs are creating significant challenges,” she said.
While some employers are trying to retain workers by offering more flexibility and competitive benefits packages, others lack the financial capacity.
“It’s a tough time to be a small business.”
Solberg also points to the provincial minimum wage increase, slated for Oct. 1 which will further strain business budgets.
“That creates tradeoffs when employers are now being forced to increase wages; they’re forced to make tough decisions within the tight budgets that they have. And that creates further challenges for some,” she said.
The director sees health coverage as a main consideration for prospective employees, but sustainable wages and workplace flexibility are also seen as valuable.
— with files from Talha Hashmani