4 Ways to Measure the ROI of Your Employee Benefits Plan

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Most employers know what their benefits plan costs. The harder question is whether it’s delivering value.

As employee needs change, benefits should be viewed as more than an annual renewal exercise. A strong plan can support retention, recruitment, absence management, employee understanding and better use of existing supports.

According to the 2024 Benefits Canada Healthcare Survey, 80 per cent of Canadian employers said it was extremely or somewhat challenging to provide benefits in today’s economic climate. The same survey found 77 per cent of plan sponsors said their benefits plan was extremely or very important to their organization overall. 

That’s why cost is only one part of the picture. To better understand the return on your benefits investment, employers can look at four areas.

1. Connect benefits to a business goal

It’s natural to start with plan design, but the numbers are most useful when they’re connected to a clear business goal.

For some employers, the goal may be improving retention or recruitment. For others, it may be managing disability trends, supporting mental health, addressing financial stress or helping employees better understand their total compensation.

Before measuring ROI, ask: what do we need this plan to help us achieve?

2. Look beyond pay

Employees look at more than salary when deciding whether to stay with an employer or consider a new role.

In fact, personalized benefits are increasingly becoming part of the compensation conversation. Among Canadians planning a job search in early 2026, better benefits ranked as the top driver of potential job changes at 33 per cent, slightly ahead of competitive pay at 31 per cent.

That means benefits should be reviewed as part of a broader total rewards strategy.

Flexibility can also make a plan more valuable. Employees are not all looking for the same support. One person may value dental or vision coverage, while another may need mental health support, paramedical coverage or help managing prescription drug costs.

Health Spending Accounts can give employees more choice in how they use their benefits dollars, while helping employers manage costs in a practical way.

3. Use data to identify pressure points

Absenteeism, short-term disability, long-term disability, usage and claims data can all help employers understand how their plan is supporting the workforce. These trends can show where support may be needed earlier or where the plan may need closer review.

Mental Health Research Canada’s 2025 workplace mental health findings reported that 39 per cent of Canadian employees felt burned out, up from 35 per cent in 2023. It also estimated burnout costs employers between $5,500 and $28,500 per employee each year.

Aggregated plan data can show patterns in areas such as:

• drug costs
• paramedical use
• Employee Assistance Program (EAP) uptake
• disability claims
• absenteeism
• benefit usage

Higher usage may show employees value a benefit, while low usage may point to an awareness gap. Rising costs may signal a sustainability issue, while longer disability durations may suggest a need to review early support or return-to-work processes.

4. Communicate the value

A benefits plan has less impact if employees don’t understand what’s covered, how to access support or how the plan fits into their total compensation.

Clear communication can help employees make better use of the supports already available to them. It can also help employers show the full value of what they’re investing in beyond salary alone.

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At Prime Benefits Group, we help employers take a closer look at their benefits plan, using business goals, plan data and employee needs to guide better decisions. Reach out to our team today.