HR managers are finding themselves in a bit of a bind in attracting and retaining top talent. This is occurring mainly because of the higher costs of healthcare and prescription drugs.
A recent survey conducted by Gallagher Benefits Services says that 64% of companies do not have an effective strategy for managing healthcare expenses and almost none (5%) have any methods to cut prescription drugs. That is a problem, as the survey points out 57% of Canadian employers plan to increase headcount this year.
Leslie Lemenager, head of Gallagher Benefits Services’ Canadian employee benefit consulting operations says, “To win the war for talent while keeping costs sustainable, employers need to look beyond the most expensive options and incorporate data to ensure they offer benefits that are cost-effective, competitive and appealing to key talent.”
Most Canadian employers believe their benefits are competitive, but base that conclusion on perception rather than data. For example, 60% of employers feel their workforce is highly engaged, but only 42% have conducted an engagement survey since 2016. In addition, 32% say they lack any communication strategy, making benefits education or feedback difficult. The research also finds many organizations actually already have the resources they need to strengthen employee wellbeing or could add voluntary benefits to do so.