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The State Of Employee Health Benefits: Key Findings From The 2024 Benefits Canada Survey

The 2024 Benefits Canada Healthcare Survey is an annual survey that sheds light into critical trends shaping the future of employee health benefits and wellness programs. As the workforce continues to evolve, employers and plan sponsors must adapt to rising employee expectations, financial pressures, and the growing demand for comprehensive, accessible benefits. 

This year’s findings offer valuable insights into how organizations can strengthen their benefits strategies to attract and retain top talent while addressing the challenges of rising costs and increased utilization. 

Here are the most significant takeaways to help businesses navigate the shifting landscape of employee health and wellness.

1. Rising Stress Levels and Mental Health Concerns

Stress remains a significant challenge for employees. Personal finances and workload continue to dominate as the top sources of stress, while mental health challenges such as depression and anxiety persist. High daily stress rates were particularly pronounced among caregivers and those with poor mental health. 

Key findings include:

  • 36% of plan members report high daily stress levels.
  • Caregivers (44%) and those with poor mental health (57%) are especially affected.
  • 43% of plan members cite personal finances as their top stressor, a concern that has grown steadily over the past three years.
  • Poor mental health is strongly correlated with poor social health (49%) and workplace disconnection (40%).
  • Over half (53%) of those with poor mental health feel their workplace does not support mental wellness.

To combat these challenges, employers can provide robust mental health benefits, including access to counseling and support services, stress management resources, and fostering a culture of open communication about mental health.

2. The Growing Importance of Financial and Social Health

You would be hard-pressed to find a Canadian family who aren’t experiencing increased financial pressure, and this compounding financial strain can negatively impact employees’ overall well-being and productivity. Employers should consider enhancing financial wellness programs and support within their benefits plans to help alleviate these challenges. 

“What struck me is the importance of financial health and its impact on mental health. Personal finances are plan members’ most common stressor.” – Shelley Sjoberg of Canada Life. 

Employers can address these concerns through:

  • Financial literacy programs to reduce stress related to money management.
  • Initiatives to foster workplace connections and build social networks.
  • Flexible work policies have shown a positive impact on employees’ social health, especially among remote workers.

Meanwhile, social health has emerged as a critical factor, with two in five plan members reporting feelings of loneliness or disconnection. Employers must consider holistic health approaches, including initiatives fostering social connectivity.

3. Chronic Conditions and Their Impact on Workforce Health

Chronic conditions are a growing concern among plan members, impacting individual health, workplace productivity, and healthcare costs. 

Key findings include:

  • 58% of plan members live with at least one chronic condition, increasing to 72% among those aged 55 and older.
  • Mental health disorders, such as depression and anxiety, remain the most common diagnosis at 22%, followed by high cholesterol (13%) and arthritis (13%).
  • Chronic pain affects 38% of plan members, with 21% reporting that it impacts their daily activities multiple times per month.

These conditions have a compounding effect on mental health, as 80% of those with poor mental health also report having at least one chronic condition. Chronic pain and mental health conditions often co-occur, creating a cycle of reduced quality of life and increased healthcare utilization.

Additionally, plan members are taking proactive steps to manage their health. 

According to the survey:

  • 40% reported healthier eating habits, up from 35% in 2023.
  • 38% engage in more physical activity, indicating a shift toward lifestyle improvements.
  • Medication remains the most common treatment at 41%, but its prevalence has declined, suggesting a growing interest in non-pharmaceutical approaches.

Advisory board members emphasized the importance of addressing these challenges holistically. As Dr. Ayla Azad of the Canadian Chiropractic Association noted, “We need to remove the stigma and address the comorbidity around chronic pain and mental health disorders.” Creating safe environments for open dialogue and providing tailored support for chronic conditions can improve outcomes.

Employers can take actionable steps better to support employees with chronic conditions, such as:

  • Enhancing healthcare benefits to include preventative care and paramedical services like physiotherapy and mental health counseling.
  • Offering wellness programs focusing on lifestyle changes, such as exercise and nutrition coaching.
  • Providing resources to improve medication adherence and reduce barriers like cost or access to care.

4. Health Benefits Plan: Perceptions and Challenges

While 75% of plan members rate their health benefits plans highly, satisfaction levels drop significantly among those in poor health. 

Key challenges include:

  • 56% of plan members with excellent or very good health feel their plan meets their needs, compared to only 33% of those in poor health.
  • Plan sponsors overwhelmingly (80%) find it challenging to provide benefits in today’s economic climate, with cost pressures such as inflation and drug plan expenses being major concerns.
  • Flexibility in plan design is critical as sponsors increasingly prioritize mental health coverage and wellness-focused initiatives to meet diverse employee needs.

“The fundamental question of the next few years is who will pay for health care,” noted one advisory board member, reflecting the balance sponsors must strike between sustainability and employee satisfaction.

5. Increased Utilization of Health Benefits and Services

A considerable proportion of Canadians would utilize mental health services more frequently if cost were not a barrier. This highlights the need for employers to ensure that mental health support is both accessible and affordable within their benefits plans, promoting better mental health outcomes among employees.

Utilization of health benefits has risen, with prescription drug plans remaining the most-used service. Paramedical services like physiotherapy and massage therapy are also gaining traction. Employers should leverage utilization data to optimize plan offerings and ensure employees understand their benefits.

Utilization of health benefits continues to climb, with several notable trends:

  • Prescription drug plans remain the most-used benefit, with 44% of plan members categorized as medium or heavy users.
  • Paramedical services, such as physiotherapy (16%) and chiropractic care (14%), are becoming increasingly popular, especially among those recovering from major injuries or dealing with chronic pain.
  • Despite high utilization, 82% of plan members are light or non-users of their dental plan, indicating potential opportunities to better communicate coverage options and encourage preventative care.

Employers should leverage utilization data to identify gaps and opportunities within their offerings. Ensuring employees understand their benefits and encouraging preventative care can enhance both utilization and satisfaction.

6. Barriers to Lifestyle Changes and Preventative Health

Many Canadian employers find it challenging to offer comprehensive benefits in the current economic climate. This difficulty underscores the importance of developing cost-effective and sustainable benefits strategies that meet employees’ needs without overextending company resources. Plan members face several barriers to adopting healthier lifestyles, with the most common being:

  • 43% cite time constraints as a key obstacle.
  • 34% report personal costs as a barrier, particularly for those in poor mental health.
  • 38% struggle with motivation, especially among employees managing chronic conditions or high-stress levels.

Employers can address these barriers by:

  • Providing wellness spending accounts to reduce financial burdens.
  • Offering time-flexible wellness programs, such as on-demand fitness or health coaching.
  • Incentivizing participation in health initiatives through rewards or recognition programs.

The advisory board also suggested tailoring wellness communications to employee demographics, as different age groups and life stages experience unique health challenges.

7. Emerging Trends in Employee Wellness Programs

Employers are increasingly integrating innovative wellness programs to boost engagement and retention. Examples include reward-based apps that encourage healthy behaviors and initiatives promoting preventative care. These programs not only enhance employee health but also contribute to lower turnover rates and higher morale.

Employers are embracing innovative approaches to wellness, reflecting a shift toward holistic employee care. 

Key trends include:

  • Reward-based apps that encourage healthy behaviors, such as tracking steps or practicing mindfulness, have significantly increased engagement.
  • Preventative health initiatives, such as in-house clinics and dietitian services, are helping employees address health risks before they escalate.
  • Linking wellness programs with broader workplace recognition systems can improve both health outcomes and employee retention, as seen in organizations with integrated wellness and reward platforms.

The survey highlights how these programs enhance employee health and contribute to tangible business benefits, such as lower turnover rates and higher morale. Employers investing in these trends are better positioned to attract and retain top talent while fostering a healthier workforce.

Why Health Coverage is Key to Retention in 2025

The 2024 Benefits Canada Healthcare Survey highlights the growing importance of health benefits in employee retention, ranking just below wages and above work environment and job responsibilities. Employers are increasingly enhancing their benefits offerings, with one-third making improvements for the third consecutive year. 

However, nearly half acknowledge that while benefits have become more essential since the pandemic, rising costs, increased utilization, and higher employee expectations make them harder to sustain. These insights emphasize the critical role of competitive health benefits in attracting and retaining talent while underscoring employers’ financial challenges in providing them.