5 Red Flags Your Group Benefits Are Sending Employees

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Around Valentine’s Day, we talk a lot about relationships. Your group benefits plan is one of the most important relationships you have with your employees. And like any relationship, there are signs when something isn’t working.

Here are five of the most important group benefits red flags I see:

Red Flag #1: Your group benefits look good on paper, but are hard to use

This is the most common issue employers run into. Coverage exists, and the plan design technically works. But employees struggle to access their group benefits when they need them.

For example:

• Employees can’t easily find providers accepting new patients
• Mental health coverage runs out after a couple of sessions
• Claims are denied because pre-approvals weren’t clearly explained
• Employees only learn what isn’t covered after paying out of pocket

Research suggests that Canadians who face barriers to mental health care are more likely to report anxiety and depression, and many are concerned about the overall availability of mental health services.

From an employer’s perspective, the plan is there. But for an employee, it may feel unreliable. Ease of use is just as important as coverage. When group benefits feel complicated, employees disengage, even when the plan itself is solid.

Red Flag #2: A one-size-fits-all plan in a multi-generational workforce

Today’s workforce includes early-career employees, parents, mid-career professionals, people supporting aging parents, and employees starting to think seriously about retirement.

Many group benefits plans still treat everyone the same. Some common signs include:

• Heavy emphasis on traditional coverage that some employees rarely use
• Limited flexibility to reflect different life stages
• Few ways for employees to personalize their benefits
• Younger employees feeling disengaged, older employees feeling underserved

One-size-fits-all plans may be easier to administer, but they rarely feel relevant. 

You don’t need a separate benefits plan for each generation. Flexible benefits, healthcare spending accounts (HCSAs), and modular options allow employers to meet diverse needs without dramatically increasing costs. They also send a ‘green flag’ that different needs and different stages of life are understood.

Red Flag #3: Mental health is a priority in theory, not in practice

Mental health challenges affect hundreds of thousands of Canadian employees every week. Many employers expanded mental health coverage after the pandemic and offer support through an Employee Assistance Program (EAP). The opportunity now is making sure those supports are easy to find and understand.

Here are a few signs your group benefits plan may be falling short:

• Coverage limits that support only a handful of sessions
• Long wait times to access providers
• High out-of-pocket costs even with coverage
• Employees unsure where to start or who to contact

As EAPs evolve and become more important, employers should focus on increasing awareness and making EAPs as accessible and user-friendly as possible.

Red Flag #4: Retirement support is missing or barely mentioned

This is one group benefits ‘red flag’ that often flies under the radar.

With roughly a quarter of Canadians having saved $5,000 or less for retirement, employer support is more important than ever.Many employers offer some form of retirement savings, such as a Group RRSP, but little guidance or clarity around it.

Some signs of this include:

• Employees unsure how much to contribute or why it matters
• Little communication beyond enrollment
• Mid-career employees worrying if they’re falling behind

Retirement might feel like a long way off for younger workers, but Gen Z is already thinking about saving for the future. Canadians are also living longer and retiring later; almost half expect to postpone it altogether because of rising costs. When retirement support is missing from your group benefits strategy, it sends an often unintended message that employees are on their own.

Red Flag #5: Employees don’t understand what they have

Sometimes the plan itself isn’t the problem. The communication is.

Warning signs include:

• Employers answering the same benefits questions over and over
• Employees unaware of certain coverage or programs
• Low utilization 

Even the best group benefits plan can be underused if employees don’t understand it. Clear and simple benefits communication builds confidence. When employees understand their offerings, they’re more likely to use them and value them.

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Not sure what signals your benefits plan is sending?

It may be time for a fresh, practical view. 

Contact us at Prime Benefits Group today for a review of your group benefits and retirement programs.

We’ll help you identify gaps, pressure-test assumptions, and make sure your plan reflects the needs of the team you’re trying to support now and in the years ahead.