Written by: Steffen deGraaf

Group Benefits Consultant, AEC Benefits

Hiring in Ontario right now? Then you already know it’s a candidate-driven market. The best talent isn’t just looking at salary—they’re evaluating the entire compensation package, and benefits play a huge role in their decision.

Here’s the reality: if your business isn’t offering competitive benefits, you’re losing top talent to companies that do. Let’s break down how employee benefits can give you an edge, what job seekers really want, and why benefits often outweigh salary increases in negotiations.

Table of Contents

1. The Role of Benefits in Attracting Top Talent
2. What Today’s Job Seekers Look for in a Benefits Package
3. How Benefits Compare to Salary Increases in Job Negotiations
4. Common Employer Mistakes When Offering Benefits
5. How to Structure a Competitive Benefits Plan
6. Conclusion

1. The Role of Benefits in Attracting Top Talent

The Problem:

Many businesses undervalue the role benefits play in recruitment. They assume candidates will take a higher salary over better benefits, but that’s not always true.

Why It’s a Competitive Advantage:

📌 76% of job seekers say they’d choose an employer with a strong benefits package over a company offering higher pay but fewer benefits.
📌 Comprehensive benefits show you invest in employees’ long-term well-being, not just their paycheck.
📌 Health and wellness perks are becoming more critical, especially for Gen Z and Millennials who prioritize work-life balance.

How to Fix It:

✔ Stop assuming salary is the only bargaining chip—benefits matter just as much.
✔ Make sure your benefits package is clearly presented in job offers.
✔ Highlight the tax advantages of benefits (which we’ll cover later) when discussing total compensation.

2. What Today’s Job Seekers Look for in a Benefits Package

Not all benefits are created equal. What employees valued five years ago isn’t necessarily what they prioritize today.

The Must-Have Benefits for Today’s Workforce

✔ Health & Dental Coverage – The #1 benefit employees look for. Plans that include mental health support are especially valuable.
✔ Flexible Work & Wellness Programs – Remote work options, wellness stipends, and mental health days set businesses apart.
✔ Retirement Savings & RRSP Matching – More employees are prioritizing long-term financial security.
✔ Health Spending Accounts (HSAs) – Employees want flexibility to choose how they use their benefits.
✔ Parental & Family Benefits – Maternity leave top-ups and childcare support can seal the deal for working parents.

How to Fix It:

✔ Survey your employees to understand what benefits matter most to them.
✔ Work with a benefits consultant to structure a package that meets modern expectations.
✔ Be transparent about what’s included—don’t make employees guess.

3. How Benefits Compare to Salary Increases in Job Negotiations

The Problem:

Many employers default to raising salaries when candidates negotiate. The issue? Higher salaries cost more in taxes, while benefits offer more value.

The Cost Breakdown: Salary vs. Benefits

Why Benefits Are a Better Negotiation Tool:

📌 A tax-free benefits package can be worth more than a taxable salary increase.
📌 Health benefits protect employees from unexpected medical costs, making them more valuable than extra cash.
📌 Group benefits can include RRSP matching, dental, and vision—expenses employees would otherwise pay out of pocket.

How to Fix It:

✔ Educate candidates on the total compensation value of benefits.
✔ Offer benefits flexibility to let employees choose what matters most to them.
✔ Highlight how benefits provide long-term security, whereas salary increases get taxed immediately.

4. Common Employer Mistakes When Offering Benefits

A. Offering One-Size-Fits-All Benefits

📌 Today’s workforce wants customization—what works for one employee might not work for another.

B. Not Reviewing Plans Regularly

📌 Benefits needs evolve, and if you haven’t updated your package in 3-5 years, you’re likely behind the competition.

C. Failing to Communicate the Value

📌 Employees often don’t realize how much their benefits package is worth unless employers clearly communicate it.

How to Fix It:

✔ Offer modular benefits so employees can tailor their coverage.
✔ Conduct annual benefits reviews to stay competitive.
✔ Clearly explain benefits during onboarding and hiring.

5. How to Structure a Competitive Benefits Plan

To stand out, your benefits plan should be: ✔ Flexible – HSAs, lifestyle spending accounts, and modular benefits let employees customize their coverage.
✔ Comprehensive – Cover health, dental, mental wellness, retirement savings, and family-friendly perks.
✔ Tax-Efficient – Use tax-deductible benefits instead of costly payroll increases.
✔ Proactively Reviewed – Adjust coverage based on employee feedback and market trends.

6. Conclusion: Winning the Hiring Game with Better Benefits

If you want to hire and retain top talent in Ontario, you need to go beyond salary and offer meaningful benefits. A well-structured benefits package: ✔ Makes your company more attractive to job seekers
✔ Provides more financial value than a salary increase
✔ Creates long-term employee loyalty
✔ Gives you a tax-efficient way to boost compensation

📞 Want to structure a benefits plan that attracts top talent? Let’s chat!
✅ Book a Free Benefits Review Today