Across Canada, headlines are raising the alarm about the ongoing labour shortage and its potential economic fallout. While politicians are launching committees and economists are formulating theories, business leaders are left searching for answers.
The impact is being felt across the country, but it is particularly noticeable in the Atlantic region. A recent report from the Canadian Federation of Independent Business reveals Nova Scotia businesses lost out on approximately $1 billion in potential sales and contracts in 2022 due to staffing shortfalls.
To address these human resource challenges, businesses are seeking innovative solutions beyond compensation, focusing on practical and cost-effective ways to enhance total rewards packages and position themselves as employers of choice.
Evolving employee needs
Today’s employees increasingly prioritize well-being, work-life balance, and a positive workplace culture when evaluating potential employers. In addition to career growth and meaningful work opportunities, they look for companies offering wholistic supports and benefits, such as enhanced wellness programs focused on mental health and financial well-being.
Recognizing that financial security is a critical aspect of well-being, leading employers in the region are beginning to see the connection between supporting employee retirement planning and attracting and retaining top talent.
According to a Manulife Canada Retirement study, eight out of 10 Canadians say a retirement plan is a critical company benefit and six out of 10 report they would be unlikely to work for a company that doesn’t provide a pension.
Improving outcomes for all stakeholders
Demonstrating commitment to employee financial security and overall wellbeing through a pension or retirement savings arrangement can be a key differentiator and even be a competitive advantage in the Atlantic labour market.
A Canadian Public Pensions Leadership Council (CPPLC) survey found retirement planning stress can significantly impact career decisions, especially among Canadians aged 35 to 44, with 28% reporting high stress and an increased willingness to change employers for a better pension.
Offering desirable pension benefits to employees can alleviate their concerns about financial security, and provide a cost-effective way to boost productivity, increase engagement, reduce burnout, and lower turnover costs and impact.
Identifying the retirement needs of today’s workers
While any retirement savings option a business offers its employees is beneficial, not all are created equal. When assessing the right retirement arrangement for your workforce and your business, there are several important questions to consider:
• What are the costs/risks associated with the plan?
• What type of benefits will employees receive?
• Are employees getting the best return on their investment?
• Can you tailor the plan to meet the unique needs of the company and employees?
• What supports are available to help employers administer the plan?
The pension landscape in Nova Scotia is changing, and organizations here now have access to a variety of options once thought to be available only to large organizations or the public sector.
The reality now is there are cost-effective ways to offer a pension that give employees what they want and need. Doing so can drive better outcomes for both your business and people.
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