From health insurance to well-being: How employee benefits are changing

For many years, workplace benefits were built mainly to cover medical costs. Today, that’s no longer enough. Employees want support that helps them stay healthy in body, mind, and finances. And employers want programs that improve productivity, retention, and overall morale.

Across Canada, the shift is clear: benefits are moving from a traditional “benefits plan” to a well-being strategy.

Why this shift is happening

Mental health is now one of the biggest challenges facing Canadian workplaces. According to the Centre for Addiction and Mental Health, 1 in 5 Canadians experience mental illness in any given year, which means nearly every team has people who are struggling.¹

The latest Benefits Canada Healthcare Survey adds to this picture. It shows that depression, anxiety, and other mental health conditions are the top-diagnosed chronic conditions among plan members.² Many employees also say that their well-being affects their performance at work, and they expect employers to play a role in supporting them.²

When you put all of this together, the message is simple: Healthy employees build healthy organizations.

What modern well-being programs look like

Today’s benefits plans are built around the full person; not just medical expenses. Most forward-thinking organizations are investing in three key areas:

1. Mental well-being

Employees need access to support early, often, and without barriers. Many employers now offer tools such as:

• Employee Assistance Programs (EAPs): Short-term counselling for personal or work-related challenges.
• Virtual therapy and digital mental health tools: Quick access to therapists or trained counsellors through secure online platforms.
• Mental health education for leaders: Training to help managers recognize signs of stress and respond with empathy.
   

These supports matter. In the Benefits Canada survey, 10% of employees said their mental health had worsened over the last year, and many were unsure where to turn for help.² Offering accessible care can make a meaningful difference.

2. Physical well-being

Physical health programs are expanding too. Employers are adding:

• Virtual health appointments
• Nurse or physician consultations by phone or video
• Wellness resources that guide employees through fitness, nutrition, and chronic-condition support
   

These tools help people get answers faster — especially when in-person appointments are hard to book.

3. Financial well-being

Financial stress affects productivity, absenteeism, and overall morale. Employees often want simple guidance to help them feel more in control of their money.

Plan sponsors are now offering:

• Financial education and one-on-one financial coaching
• Access to retirement planning tools
• Clear communication about how benefits work
   

Supporting financial well-being isn’t about telling employees what to do. It’s about giving them resources that bring clarity and confidence.

The role small and mid-sized businesses can play

Years ago, only large organizations had access to full wellness programs. That’s no longer the case.

Many insurers now offer built-in wellness platforms that include learning modules, coaching programs, and digital tools for both employees and managers. These programs help smaller employers create a healthier culture without the heavy cost of building something from scratch.

This is especially important as workplaces become more diverse, complex, and delivered in a hybrid format. Employees need flexible, accessible support, and employers need programs that can grow with their teams.

Where employers still struggle

Even with progress, there is still work to do. The Benefits Canada Healthcare Survey shows gaps in:

• Communication: Employees often don’t know what their benefits include, or how to use them.
• Psychological safety: Many employees don’t feel comfortable speaking up about stress or burnout.
• Leadership training: Managers want to help but don’t always have the right tools or language.
   

Closing these gaps doesn’t require a complete overhaul. It starts with better conversations, clearer messaging, and leadership teams who model healthy behaviour.

What this shift means for employers

Moving from “benefits coverage” to “well-being” is not about spending more. It’s about:

• Making intentional investments
• Understanding how benefits support the whole employee
• Designing programs that reflect both organizational goals and employee needs
   

We help businesses think about this through the lens of their “dual bottom line”: Supporting employees in a meaningful way, while ensuring the plan is structured cost- and tax-efficiently.

When benefits are thoughtfully designed, the result is a workplace where people feel cared for, stay engaged, and bring their best to the organization.

A healthier future for workplaces

The conversation about well-being is still evolving, but one thing is certain: the traditional benefits model is gone. Employees want support that helps them feel good, stay productive, and manage life’s challenges, physically, mentally, and financially.

We’re here to help business owners make thoughtful, intelligent decisions about their workplace well-being strategies. Our team brings deep expertise in plan design, cost efficiency, and employee needs, helping organizations create programs that truly support their people.

We work alongside you to ensure your benefits plan is not only competitive, but aligned with the culture and long-term goals of your business – so your employees can thrive, and your organization can thrive with them.

Sources

Mental health and addiction: Facts and statistics. 2025. The Centre for Addiction and Mental Health. https://www.camh.ca/en/driving-change/the-crisis-is-real/mental-health-statistics.  

Benefits Canada Healthcare Survey 2025: Test of time: Members and sponsors share their view to help solve for the sustainability of health benefits plans. 2025. Benefits Canada. https://cdn.ofsys.com/T/OFSYS/H/C1024/8726/1kn1rV/bchs-report-2025-eng-final.pdf?fpid=&m32_fp_id=&ctx=newsletter&m32_fp_ctx=DI_MASTER_Relational.