Although for decades Group Benefits have been an essential part of compensation for Canadians, not many know their history. It’s about time we told the whirlwind tale of Group Benefits, from its humble beginnings and exciting revelations the digital era brought us, all the way to how the workforce successfully forced one of the most stubborn industries to change for the better.
Let’s get things started, shall we?
The story of group benefits
Our origin story
The concept of group benefits first appeared in Canada post-World War II when large corporations began offering their teams health and dental benefits. Healthcare was super expensive, and government-funded healthcare wasn’t established. As a result, group benefits became the tool for attracting and retaining employees.
Group Benefits grow up
From the 1970s on, group benefits began to expand beyond just health and dental care. Disability insurance, life insurance, and other solutions were more widely included as part of group benefits. This period also saw the rise of collective bargaining, leading to an increase in employee benefits as part of union contracts.
The ‘80s and ‘90s marked a significant turning point in the evolution of group benefits in Canada. During this time, the government began introducing legislation to protect employees' rights to receive benefits. This included laws governing employee privacy and the right to continuation of benefits after leaving a job. It was also required to provide greater transparency and disclosure around benefits packages to ensure Plan Members understood what they were entitled to.
Flexibility, convenience, and mental health
The turn of the century was slow. Plans were one-size fits all and the most rigid they’d ever been. This acted as a catalyst though and brought a (painfully slow) change to how benefits were viewed.
The 2010s pushed group benefits technology out of the stone age and away from piles of paperwork. Online portals were introduced, making it easier for employees to manage their benefits and access information. Mobile apps were introduced, and even virtual portals to link Plan Members with practitioners, enabling employees to access their benefits and information from anywhere at any time.
Additionally, employers began seeking out benefits to meet the diverse needs of their team. This is where solutions like Health Spending Accounts started to come into the limelight, allowing employees to choose where and when they spend their compensation, rather than being at the mercy of category limits and maximums.
This change in solutions was also necessary to supplement the ever-rising need for mental health coverage. By enacting change in traditional plans, Plan Sponsors were able to give their teams the coverage they needed to maintain their mental and physical health.
Our history defines us today
Today, group benefits are an integral part of how the Canadian workforce views their compensation. Employers of all types and sizes offer comprehensive benefits packages to attract and retain employees. Through the years, we can see three major trends in the evolution of benefits. Group Benefits have become more:
Flexible
Your team is expecting their benefits to suit their needs. Rigid plans are out, and your team wants to decide where they spend their benefits. It is an integral part of their compensation after all.
Transparent
Plans should be completely transparent in their coverage and costs. Plan Members and Plan Sponsors alike expect their costs to be controllable and upfront, so they know what they’re paying. Plan Sponsors don’t want to wonder what their costs will be next year.
Comprehensive
It’s clear that good benefits are necessary to attract and retain top talent. As an employer, you must ensure your benefits will fully protect your team and their families to be competitive in the job market.
You folks know so much, can I give you a call?
We would be doing ourselves a disservice if we said no! We love talking benefits with anyone who listens so reach out to our Growth team to have all your questions answered. We have tons of great content on all our socials – Instagram, Twitter, Facebook, LinkedIn – and our blog hub so check it out if you’re itching for more.
