2025 index shows flexibility and work-life balance now lead employee benefit priorities over pay

Nearly 3 in 4 Canadian employees say they would be more likely to stay with their employer if benefits were personalized and comprehensive.
Yet, HUB International Limited’s 2025 Canadian Workforce Vitality Gap Index shows many organizations are not implementing the targeted programs needed to meet this demand.
The report found flexibility and work-life balance now outrank compensation as the top priority for 40 percent of employees.
Despite this shift, employers continue to focus heavily on traditional offerings, often guided by incomplete data.
HUB stated that engagement surveys and industry benchmarks can miss critical nuances, especially in diverse or rapidly changing workforces.
According to Terri Botosan, president, Employee Benefits, Retirement and Life at HUB International Canada, employers are acting on assumptions rather than reliable data about what employees value.
This misalignment, she said, is affecting both retention and engagement.
Faizal Mitha, Chief Sales and Chief Innovation Officer at HUB International Canada, added that benefits such as workplace flexibility could even reduce costs for employers.
The index stressed that failing to understand employee priorities has tangible business consequences, including stalled recruitment, reduced retention, and lower productivity.
These risks are amplified in the current economic climate, with both employers and employees watching spending ahead of a potential recession.
Other findings highlighted that more than a third of employees reported mental health concerns, but participation in wellness programs remains low.
HUB suggested this reflects gaps in awareness, understanding, or perceived value.
Meanwhile, 75 percent of employers plan to expand benefits programs in the next year, but without strategic, data-driven planning, the added spending may fail to deliver the desired results.
HUB urged employers to redesign benefits programs using comprehensive data and tailored feedback.
“With better insights, businesses can deliver what truly matters to their teams—without overspending,” Botosan said, calling it not just a benefits issue but a broader business challenge.