The Canadian workplace has never been more diverse, with up to five generations currently working side-by-side. In Western Canada, where the labour market is highly competitive—from the tech hubs of Vancouver and Calgary to the resource industries of Edmonton and Saskatchewan—attracting and retaining talent requires a benefits strategy that speaks to everyone. The most pronounced challenge lies in bridging the divide between the needs of Baby Boomers (approaching or past traditional retirement age) and Generation Z (new entrants prioritizing financial stability, mental health, and flexibility).
Offering a one-size-fits-all benefits plan is a relic of the past. To succeed, Western Canadian employers must move toward a flexible, personalized benefits strategy that acknowledges these distinct generational priorities.
Gen Z: The Quest for Wellness and Stability
Born between 1997 and 2012, Gen Z entered the workforce amidst a volatile economy, high student debt, and a soaring cost of living, particularly in major Western cities. This context shapes their top priorities, which revolve less around traditional insurance products and more around holistic well-being and immediate financial relief.
1. Mental Health as a Core Benefit
For Gen Z, mental health support is non-negotiable. They are the generation most likely to report higher rates of anxiety and stress and they view mental well-being as intrinsically linked to performance and work-life balance.
- The Gen Z Solution: Standard Employee Assistance Programs (EAPs) often fall short. They seek digital access to providers like psychiatrists and psychologists, virtual care options for immediate support, and a higher number of covered therapy sessions. Employers should integrate these services directly into the benefits plan, not as a standalone, often under-utilized, service.
2. Financial Wellness and Flexibility
Gen Z is grappling with unprecedented financial pressure. While salary is crucial, they are acutely aware that a fixed compensation package may not cover their varied needs, from student loan payments to saving for a non-traditional future.
- The Gen Z Solution: Wellness Spending Accounts (WSAs) are highly attractive. By offering a designated, flexible fund for things like gym memberships, lifestyle expenses, or even contributions to RRSPs/TFSAs, an employer empowers Gen Z to allocate funds where they need them most—be it self-care or financial planning tools. This flexibility is often valued more than a marginal increase in core health coverage they may not yet need.
3. Technology and Communication
As digital natives, Gen Z expects their benefits to be administered and accessed seamlessly via technology. A clunky, paper-based plan is an immediate turn-off.
- The Gen Z Solution: Benefits communication must be clear, concise, and accessible on mobile devices. They value telemedicine and virtual care that provides quick, on-demand medical advice, seeing it as an efficient alternative to booking appointments.
Baby Boomers: Security, Comprehensive Care, and Legacy
The Baby Boomer generation (born between 1946 and 1964) is either delaying retirement or working past the traditional age of 65, often due to a combination of professional desire and financial necessity. Their benefits needs are rooted in established health concerns and planning for the long term.
1. Robust Core Health Coverage
As they age, Boomers have a greater need for predictable and extensive coverage for chronic conditions, prescription drugs, and high-quality paramedical services.
- The Boomer Solution: They prioritize high-value coverage in the core plan, particularly for prescription drug coverage (including specialty drugs), vision care, and extensive dental coverage. They are less focused on flexible accounts and more on comprehensive, secure insurance that minimizes out-of-pocket costs for essential care. They are also the top demographic for preventative screenings, making benefits that support these a key attractor.
2. Life, Disability, and Retirement Security
Boomers are focused on securing their financial legacy and ensuring stability should their ability to work be compromised. While some are still accumulating wealth, the primary concern is protection and income stability.
- The Boomer Solution: Enhanced disability insurance (Long-Term Disability) with favorable definitions (like own occupation coverage) and higher-limit life insurance are major draws. Furthermore, retirement support, such as robust defined contribution pension plans or generous Registered Retirement Savings Plan (RRSP) matching, remains a critical component of their total rewards package.
3. Support for Eldercare
Many Boomers are part of the “sandwich generation,” balancing their careers with the care of their own elderly parents. This often creates a significant time and financial strain.
- The Boomer Solution: While not always traditional, benefits that offer eldercare support resources—such as EAP services that provide referrals to home care or specialized community supports—can be highly valuable. They may also use a Health Spending Account (HSA) to cover services related to an elderly dependent, if allowable under Canadian tax rules.
The Strategy for Western Canadian Employers: Embracing Flexibility
Given the conflicting, yet equally valid, priorities of these generations, the most effective strategy for a Western Canadian employer is to move toward flexible benefits plans.
The Core-Plus-Flex Model
A benefits strategy should be built on a strong, non-negotiable core foundation that all employees need, regardless of age:
- Core Benefits: A basic level of life insurance, disability, provincial-minimum drug coverage, and a foundational EAP.
Around this core, employers can layer on a flexible component using Health Spending Accounts (HSAs) and Wellness Spending Accounts (WSAs).
- HSA (Tax-Free): Allows employees to cover eligible medical expenses not fully covered by the core plan. A Boomer can use this for a higher-limit drug card co-pay or specialized physiotherapy, while a Gen Z employee might use it for a higher number of mental health sessions or vision care.
- WSA (Taxable): Provides funds for lifestyle, fitness, and financial planning tools. This is the perfect mechanism to satisfy Gen Z’s demand for modern wellness benefits while remaining cost-controlled for the employer.
By implementing a plan with a solid core and flexible spending accounts, a business in Vancouver, Saskatoon, or Calgary can effectively tell both a 62-year-old and a 25-year-old: “This plan is designed for you.” This approach is the key to maintaining a competitive edge and fostering an engaged, multi-generational workforce in the dynamic Western Canadian market.