From Stress to Stability: How Employee Benefit Plans Can Ease Financial Pressure

Introduction 

Financial stress is no longer a personal issue that employees leave at the door when they arrive at work. It’s a workplace issue with direct consequences on productivity, retention, and overall wellbeing. Nearly half of Canadians say they’ve lost sleep because of financial worries, and nearly one in three report being short of money at the end of the month (Government of Canada, 2025). 

For employers, these statistics highlight the growing importance of a strong employee benefits plan. In Canada, group benefits provide a crucial safety net that can reduce financial anxiety, support mental health, and foster loyalty. In this article, we’ll explore the connection between financial stress and the workplace, what modern benefits should include, and how employee benefits consulting helps organisations build plans that make a real difference. 

What Are Employee Benefits in Canada? 

Employee benefits refer to the non-salary compensation that organisations provide to employees. While details vary, most group benefits plans are designed to protect employees’ health, income, and long-term security. 

A typical Canadian benefits plan may include: 

• Health and dental insurance to cover medical expenses, prescriptions, and preventive care. 

• Disability and critical illness coverage to protect income in case of health challenges. 

• Life insurance to provide peace of mind for employees and their families. 

• Retirement savings programs such as Group RRSPs, pension plans, or deferred profit-sharing programs. 

• Mental health and wellness initiatives like Employee Assistance Programs (EAPs) or counselling coverage. 

• Work-life balance supports such as parental leave, paid time off, or hybrid work options. 

These programs go beyond compensation. They create financial stability and demonstrate that employers value the whole employee, not just the hours they work. 

The Toll of Financial Stress on Employees 

Studies done by the Harvard Business Review (2024) confirm that financial stress impacts employees in both subtle and significant ways. Some of the most common effects include: 

• Productivity loss: When employees are distracted by money worries, they may spend time dealing with personal finances during work hours, or find it harder to focus on tasks. 

• Absenteeism: Stress often translates into health issues, both physical and mental. Employees may take more sick days, further impacting productivity. 

• Turnover risks: Employees under financial pressure are more likely to explore new opportunities, particularly if they see competitors offering stronger employee benefits in Canada. 

• Workplace culture: Persistent stress can contribute to disengagement, reduced collaboration, and lower morale across teams. 

The costs of ignoring financial stress are significant. For organisations, the question isn’t whether to address it, it’s how.  Benchmark Benefits has further expanded on impact of financial stress on your workforce in the our article The Hidden Cost of Financial Stress: Why Employee Financial Wellness is a Must-Have, Not a Perk 

 

How Group Benefits Address Financial Stress 

A thoughtfully designed group benefits plan can directly ease many sources of financial strain. Here’s how: 

1. Reducing Out-of-Pocket Health Costs
   Medical bills are one of the biggest unexpected expenses for employees. By covering prescription drugs, vision, dental, and paramedical services, benefits reduce financial uncertainty. 

1. Providing Income Protection
   Short- and long-term disability, as well as group life insurance, provide employees with peace of mind that their families are supported if the unexpected happens. 

1. Encouraging Financial Resilience
   Group life insurance and short- and long-term disability coverage give employees peace of mind, knowing their families are protected if the unexpected happens. 

1. Supporting Mental Health
   Counselling and employee wellness programs address the emotional toll of financial strain. Employers that provide these resources signal they recognise stress as more than just a personal issue. 

1. Flexibility Across Life Stages
   From family planning support to elder care or phased retirement options, benefits can help employees navigate different stages of life without added financial pressure. 

 

What Are Employee Benefits Consultants and Why Do They Matter?

Not every benefits plan is created equal. Off-the-shelf programs may meet basic compliance requirements, but they often fail to address the real pressures employees face. 

This is where employee benefit consultants add value. Unlike brokers who typically focus on providing quotes from insurers, employee benefits consulting involves: 

• Analysing workforce demographics to design plans that fit actual employee needs. 

• Benchmarking against industry standards to ensure competitiveness. 

• Advising on cost-containment strategies to make benefits sustainable for the long term. 

• Implementing financial wellness programs, like budgeting workshops or retirement planning sessions. 

• Providing ongoing advisory as regulations, markets, and workforce needs evolve. 

The right consultant ensures that your benefits program is not just a cost, but an investment in employee wellbeing and retention. 

Building a Strategy That Works 

To create a benefits program that reduces financial stress, organisations should: 

1. Gather feedback – Surveys and interviews reveal what employees value most. 

1. Audit the current plan – Identify gaps, outdated offerings, and underutilised features. 

1. Work with a consultant – Leverage expertise to design flexible, high-impact plans. 
2. Communicate clearly – Benefits only help if employees understand and use them. 

Let Benchmark Benefits Help 

At Benchmark, we bring over 135 years of combined expertise in employee benefits consulting. Our team has worked with organisations across industries helping them design benefits that balance cost with meaningful employee support. 

We go beyond plan design to provide ongoing governance, compliance guidance, and workforce analysis. By connecting data with strategy, we ensure that benefits don’t just exist on paper—they actively reduce stress, improve wellbeing, and drive retention.