Navigating The Shifting Global Benefits Landscape

Data-driven strategies for Canadian companies

As the global benefits landscape continues to shift in response to economic and political pressures, multinational companies face mounting challenges in managing employee benefits. Normandin Beaudry has issued a Canadian-specific analysis following MBWL's release of the 2024 Global Benefits Forecast. This report is an essential tool for helping organizations navigate these complexities while ensuring their benefits strategies meet both employee needs and organizational goals. 

Key Survey Insights

One of the most significant takeaways from the survey is the challenge faced by organizations with rising costs of their benefits, particularly in areas like mental health, dental, and prescription drugs. These increased costs are juxtaposed with a slowdown in salary growth and inflation, leaving organizations to manage heightened employee expectations with fewer resources. They are also grappling with the need to provide comprehensive benefits packages while navigating external forces beyond their control, such as political and economic uncertainty. 

 

The Challenge for Organizations

As organizations plan their benefits strategies, they must continually look at their current structure as well as two to three years ahead to ensure that investments in benefits are not only meeting current needs but are also sustainable and aligned with future goals and desired returns on investment (ROI). Many companies are struggling with issues such as confidentiality, scattered data sources, and delays in accessing the information they need. The ability to cross-reference and analyze data is limited, making it more difficult for organizations to assess the true impact of their benefits strategies. Without reliable, timely data, organizations may be making decisions based on incomplete or outdated information, putting their programs at risk of inefficiency.

Solutions and Best Practices

To address these challenges, companies must focus on disciplined data collection and governance to ensure accurate benchmarking against industry, peer, and country standards. This approach will provide a clearer picture of how their benefits strategies measure up and where adjustments may be needed.

Global initiatives such as multinational pooling or captives can also help organizations optimize their benefits costs and improve employee coverage by taking advantage of economies of scale. Furthermore, implementing global minimum standards for benefits ensures a baseline level of coverage across all locations while allowing for local customization. Programs like Employee and Family Assistance Programs (EFAP), spending accounts, and well-being initiatives can enhance the overall value of benefits offerings across multiple countries. When properly executed and rolled out, such global efforts also improve governance and efficiency. 

Additionally, aligning benefits providers with the organization's strategic objectives is critical. Partner buy-in ensures that everyone involved in managing and delivering employee benefits is working toward the same goals, which helps to increase employee engagement and maximize the effectiveness of the benefits program.

Clear, concise communication can also improve employee engagement and ensure that employees are using the services most relevant to their needs at the right time, not only increasing the perceived value of the benefits package but also helping to prevent overuse or underutilization of certain services.

Finally, organizations can benefit from adopting both ROI-based and predictive approaches to managing costs. By closely monitoring both short-term returns and long-term predictability, companies can better manage their benefits spend while maintaining high standards for employee care. 

Industry Evolution

The employee benefits industry is undergoing significant transformation. Companies are expanding their benefits offerings to include more specialist services, such as extended mental health support, and are increasing the financial coverage provided to employees in these areas. This expanded approach is essential to meet the growing complexity of employee needs in a more competitive market.

“Technology is also playing a pivotal role in the evolution of benefits programs,” explained Matthew Pavelich, Senior Principal, Communications at Normandin Beaudry. “Virtual consultations and internet-based therapies are commonplace now, and AI-driven solutions are emerging, all providing employees with greater flexibility and access to care. These innovations are helping to streamline services and make benefits more accessible, particularly in areas where traditional in-person services are limited.”

Canadian Trends in Global Context

Normandin Beaudry’s analysis highlights that Canadian organizations are slightly ahead of their global counterparts in terms of offering flexible benefits and healthcare solutions. While flexibility and healthcare remain the top priorities for companies worldwide, three-quarters of Canadian companies either offer or are considering offering flexible benefits, compared to two-thirds globally. The importance of Diversity, Equity, and Inclusion (DEI) continues to influence plan design, ensuring benefits meet the diverse needs of the workforce. Women’s health has also been identified as an area in which employers wish to put more focus. This data suggests that Canadian companies are particularly attuned to the changing needs of their workforce and are taking proactive steps to address them.

Takeaways

Organizations must prioritize reliable and timely data to make informed decisions about their benefits programs. Without access to accurate information, companies risk operating in a costly void that can negatively impact both employees and the business.

Looking ahead, limited budgets and lack of resources remain persistent challenges. Subsequently, HR teams will increasingly rely on their advisors as an extension to their internal resources to support initiatives, especially in key areas like communication and cost management.

Forward-thinking solutions—such as data optimization, strategic partnerships with providers, and enhanced communication—are essential for managing rising costs, improving employee engagement, and maximizing the efficiency of benefit programs. Organizations that can successfully navigate these challenges will be well-positioned to thrive in the ever-evolving global benefits landscape.

	John-Paul Augeri, Principal and Managing Director of the Global Employee Benefits Consulting Practice at MBWL International and Milliman, brings over 25 years of expertise in helping multinational organizations design and manage global employee benefits, pensions, and M&A programs.
	Daniel Drolet (ASA, CPHR) is a Senior Partner at Normandin Beaudry and a seasoned total rewards professional with more than 30 years of experience in group benefits.