With Canada’s physical proximity, common language and highly educated, diverse workforce, it is an excellent place for U.S. organizations to expand operations.
One unfortunate similarity between the countries? Lots of turnover. Like in the U.S. with employees leaving their jobs during the COVID-19 pandemic, more than four out of 10 Canadian workers are considering switching positions in 2022, seizing opportunities for better pay and benefits.1
The unprecedented number of workers leaving their current position has put an added onus on American organizations doing business in or wanting to expand into Canada: Not only do U.S. companies need to understand the expectations of Canadian workers, but they have to offer benefits specifically designed for Canadian workers.
Going beyond government-sponsored healthcare
Provincial healthcare plans can lure American organizations into complacency, thinking they only need to make minor alterations to other benefits.
But Canadians expect a lot from their employer-sponsored benefits, and don’t want warmed-over, slightly altered benefits plans offered in the U.S.
Here’s four reasons why cross-border benefit plan modernization is essential for U.S. firms with Canadian employees:
- Canadians like insurance. Provincial Canadian healthcare is by no means comprehensive, and Canadians expect (at a minimum) their employer will offer prescription drug coverage. Generally, they want options that fit various life stages. For example, comprehensive supplemental health benefits may be important to older Canadians, while younger employees may want employers to cover less-traditional benefits like virtual care or other services focused on wellbeing. In addition, many Canadian employees demand these types of services as a baseline offering, not as something that’s simply nice to have.
- Benefits are changing. In the wake of COVID-19, Canadians want virtual care and expect coverage for virtual doctor visits, online pharmacy and Internet-based Cognitive Behavioral Therapy (iCBT), among other virtual services. Workers expect flexible benefits such as these and benefits tailored to their needs.
- Workers expect strong retirement benefits. Canadians are worried about their ability to retire: More than 70% of Canadians say they would forego a raise in favor of a workplace pension plan,2 while 43% want their employers to provide education around retirement planning, including how much to save for retirement.3 Employers that offer a pension plan or a group registered retirement savings plan (RRSP) will find it easier to attract and retain talent — just as in the U.S.
- Employee wellbeing is now the employer’s concern. The largest sources of stress for Canadians are money issues and health concerns, outstripping stress from work.4 Addressing these areas means helping physical and mental health, financial wellness, career support and other areas that may threaten employee performance and engagement. Consider increasing coverage for paramedical services, offering career counseling and supporting financial wellness programs.
