Both Canadian employers and employees are feeling the impact of higher inflation. With the pressure of meeting compensation requests, you might be wondering how to best keep employees happy - a raise or a retirement plan?
Despite economic challenges, retention remains a top priority and puts employers under greater pressure to meet compensation requests. Without skilled workers, companies risk revenue and service quality, which can damage their reputation.
Pay raises don't always impact retention. 1/3 of Canadian professionals are planning to ask for a raise if they don’t get one by the end of the year, according to Robert Half Canada.
While a pay raise offers a quick fix to mitigate the effects of inflation, a modest increase doesn’t always have a big impact on take-home pay, and does little to help with long-term retention. Employees often find greater value in help with saving for the future.
71% of Canadian workers are willing to forgo a higher salary for a better retirement plan according to a recent HOOPP survey. Meanwhile, most employers say retirement benefits are a cost-effective way to reduce financial stress, while encouraging staff to stay long-term.
The HOOPP Angus Reid survey provided further insight into why offering a group retirement plans benefit organizations:
Boost productivity: Firms with retirement benefits are more likely to report improved productivity than firms that do not.
85% say retirement benefits are a cost-effective way to reduce financial stress
78% see retirement benefits as an investment in human capital than a cost to business
Small and medium-sized companies can save up to $100,000 in turnover costs. (Gusto, Oct 2022)
Common Wealth offers a modern, digital experience to make retirement benefits easy.
Digital setup & self-serve enrollment
Supports all company sizes & income levels
Automatic payroll deductions
Dedicated education and support
Employees keep their low-fee plan for life
Book a meeting if you would like to discuss plan options and set up. We'd love to hear from you.