Recent surveys from the United Kingdom (Robert Walters) and the United States (ResumeBuilder) point to a growing trend of employers scaling back employee benefits. Let’s look at how this is playing out in the Canadian market.
The question is far from theoretical. According to the Robert Walters survey (March 2026), 43% of UK employers have already cut benefits over the past 12 months, and they plan to make further reductions in the coming quarter: fewer year-end bonuses, a rollback on flexible vacation policies, and more.
In the United States, the ResumeBuilder survey (March 2026) reveals that 54% of companies have redirected their benefits budget toward… AI investments. The axe has fallen on bonuses (61%), stock or royalty grants (60%), and even base salaries (43%).
Rising Drug Costs Raise Alarm
In Canada, employee benefits are also a concern for employers, though not because of AI investments. What’s really worrying employers (82% of them) is the rising cost of benefits coverage itself, particularly the price of prescription drugs.
“To maximize employee benefits while keeping them accessible, organizations will need to precisely determine the needs and expectations of their employees with the help of a broker who can assist them in leveraging data analytics,” according to an analysis by Hub International.
Employers still have work to do when it comes to understanding the specific and individual needs of their workforce. According to a Canadian survey conducted by RBC Insurance in May 2025, 75% of women want benefits focused on women’s health, particularly around fertility and menopause.
A Shift Toward Personalized Coverage
We put out a quick pulse check to CHRPs to get a sense of the mood among Quebec employers.
A strong inclination toward personalizing benefits packages is emerging. Mélanie Plante, an HR strategy consultant, is not surprised by this desire among Quebec employers.
“We’ve never had so many generations coexisting in the workforce,” she explains. “With profiles this different and priorities this varied, claiming that a standard offering can satisfy everyone is almost magical thinking. My view is clear: an offer that suits everyone may end up satisfying no one.”
Beyond personalization, Mélanie Plante emphasizes that employees are above all looking for flexibility.
“Not just in schedules or work location, but in how total compensation is structured. Whether it’s choosing between more vacation time or a bonus, between a higher retirement plan contribution or access to training… Flexibility needs to become a design principle for the benefits offering, not an optional perk.”
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