EMPLOYEE RETENTION & ENGAGEMENT
The cost of losing good people starts long before they leave.
Disengagement, turnover and the time it takes to hire and train new people can cost your business more than you think, in money, time and energy.
A thoughtful employee benefits strategy can be one part of the solution.
Stronger People. Stronger Businesses.
Why this matters
Attract the right people
Stand out in a competitive market and give good people another reason to choose you.
Keep your best people
Support retention and protect the knowledge and experience you’ve already invested in.
Support engagement
Help your people feel supported, valued and cared for.
Reduce hidden costs
Reduce some of the pressure that turnover and disengagement can put on your time, energy and management resources.
Build a stronger business
Create a healthier workplace and a more sustainable team around your business.
THE REAL COST OF TURNOVER
Replacing an employee costs more than a paycheque.
When someone leaves, there are the obvious costs like recruitment, advertising and training.
But there are also costs that can be harder to see.
The time spent finding the right person. The knowledge that walks out the door. The additional workload placed on everyone else. Increased supervision. And the lost productivity while a new employee gets up to speed.
Canadian government estimates put the cost of replacing an employee at:
50%
of annual salary
Entry-level position
125%
of annual salary
Mid-level position
200%+
of annual salary
Senior executive
The Government of Canada identifies direct and indirect replacement costs including recruitment, training, increased supervision and lower productivity during a new employee’s early years on the job. Source: Government of Canada, Canada Gazette(opens in a new tab)
BUT TURNOVER IS ONLY PART OF THE COST
What about the people who stay, but check out?
Employees don’t have to leave your business to create a cost.
When people become disengaged, it can show up in lower productivity, absenteeism, mistakes, reduced customer service and additional management time.
And disengagement is not a small issue.
- 21% of Canadian employees are engaged at work.
- 65% are not engaged.
- 15% are actively disengaged.
Gallup’s State of the Global Workplace 2026(opens in a new tab) reports these results for Canadian employees, based on data collected throughout 2025.
Where do benefits fit?
Benefits alone won’t create an engaged employee.
But they can contribute to how supported, valued and cared for your people feel.
A well-designed benefits program can support employee health and well-being, provide meaningful financial protection and demonstrate that you’re investing in the people behind your business.
Benefits are one part of creating a workplace people want to be part of.
Taking care of your people helps you take care of your business.
WHERE THE COSTS SHOW UP
It’s more than just a salary.
Disengagement and turnover can impact different parts of your business.
Recruitment
Time and money spent finding the right people.
Training
Getting new employees comfortable, capable and up to speed.
Knowledge Transfer
Experience and institutional knowledge can walk out the door with an employee.
Efficiency
New employees need time to learn the business, relationships and role before reaching full productivity.
Culture & Morale
Turnover and disengagement can place additional pressure on the rest of your team.
Operations & Leadership
More time spent recruiting, onboarding, supervising and solving people problems means less time available to run and grow the business.
SEE THE IMPACT
What could one departure cost your business?
Use this simple calculator to understand the potential replacement cost of losing an employee.
It’s a helpful starting point to understand what’s at stake.
$30,000$300,000
Estimated replacement cost
$30,000
50% of salary
Entry-level estimate
$75,000
125% of salary
Mid-level estimate
$120,000+
200%+ of salary
Senior-level estimate
Estimates based on Government of Canada figures(opens in a new tab) for direct and indirect employee replacement costs, including recruitment, training, increased supervision and reduced productivity.
Now compare that with what you’re investing in attracting, retaining and supporting that employee today.
This calculator is provided for illustrative purposes only. Actual employee turnover costs will vary based on the employee, position, organization and circumstances. Estimates should not be interpreted as a prediction of actual costs or savings.
HOW BENEFITS CAN HELP
Benefits are one piece of a stronger retention and engagement strategy.
Benefits won’t fix a bad workplace.
They won’t replace good leadership, meaningful work, competitive compensation, flexibility or a healthy culture.
But they can tell your employees something important:
“We value you. We want you here. And we’re willing to invest in you.”
Canadian employers clearly see that connection.
98%
of Canadian organizations cite talent attraction and retention as a key motivation for investing in employee benefits.
Mercer’s 2024-2025 Canadian Innovative and Emerging Benefits Survey(opens in a new tab) included 346 organizations.
And employees pay attention to the benefits experience too.
78%
of employees who can personalize their benefits say they feel their employer cares about their health and well-being.
That compares with 29% among employees who cannot customize their benefits, according to Mercer Marsh Benefits’ 2025 Health on Demand research(opens in a new tab).
THE BIGGER PICTURE
Benefits work best as part of the whole picture.
Pay matters. Leadership matters. Culture, flexibility, recognition and opportunity matter. Benefits matter too.
The goal isn’t simply to spend more money on employee benefits.
It’s to make sure the money you’re already spending supports your people, your business and the workplace you’re trying to build.
Strong teams build winning businesses.
And taking care of your people is part of taking care of your business.
Let’s build a workplace people want to be part of.
Tell us where you are today.
We’ll help you look at what you’re offering, what your employees value and whether your benefits strategy supports where your business is going.
No pressure. No cookie-cutter plan. Just a better look at whether your benefits are doing what you need them to do.
Better Benefits. A Brighter Tomorrow.