As employers and employees grapple with inflation, political turbulence and an economic slowdown, consultants are stepping up to offer support.
That uncertainty also extends to broader business operations. Companies in the automotive and steel industries are particularly impacted by the tariffs, but many other sectors remain unsure of what the future holds more generally.
The hesitancy is felt by employees as well. “When there’s a sense of uncertainty, employees expect some type of change [in the workplace],” says Paula Allen, global leader of research and insights at Telus Health. “When you feel stable, when you feel certain, you expect — right or wrong — that things will continue, so we have a situation where there’s a lot of uncertainty.”
Read: How employers can support psychological safety amid geopolitical instability
Employee resilience can be especially fragile if they’re also facing personal pressures, she says, noting a sense of limbo may lead employees to experience higher anxiety, a greater need to feel valued and a stronger likelihood of emotional exhaustion.
With all of this in mind, employers are facing both external and internal pressures — and need someone to lean on — so how are consultants helping employers navigate these complex challenges?
Focusing on value
Employers are trying to prioritize and balance costs by focusing on the programs employees value the most, says Ian Edelist, a strategic consultant for pension plans at Eckler Ltd.
What’s fuelling Canadians’ anxiety?
A 2025 study by Mental Health Research Canada shed light on the impact of economic and political strain on Canadians’ mental health. It found:
• 42% of respondents reported increased anxiety due to the current political and economic landscape, with lower-income households and women disproportionately affected.
• The leading cause of anxiety was the rising cost of living (52%), followed by political tensions and uncertainty with the U.S. (38%), personal challenges (27%) and global events (25%).
• Older Canadians were more worried about political tensions while younger Canadians are grappling with personal challenges.
These adjustments tend to be company- and program-specific, he adds. For example, a financial tool may be available, but if the workforce isn’t engaging with it, it may not be worth continuing.
Katrina McFadden, chief people officer at Organigram Global Inc., says her company isn’t necessarily adding or reducing benefits, but is focusing on ensuring value for a broad spectrum of employees.
Read: Back to basics on health-care spending accounts
Previously, the cannabis product supplier offered a wellness credit that only 25 per cent of employees used — typically, on gym memberships or other fitness-related expenses. It recently redirected those funds into a health-care spending account, with the aim of being relevant to a broader segment of the workforce.
“Making sure our benefits are of high value and benefitting as many of our employees as possible is our key focus right now,” says McFadden.
More conscious spending
During the uncertainty of changing tariff policies, even employers that may not directly use imports for products and services will still be hit by costs as they work their way down the food chain, says Dave Wilkins, vice-president of client management in Eastern Canada at People Corporation Inc.
As a result, everyone is taking a tighter look at expenses. “We’re seeing more involvement from finance departments looking at every line item,” says Wilkins, noting this also impacts how employers look at benefits and pensions.
Most of the conversations are now around cost containment and risk mitigation going forward, he adds, noting those conversations go beyond benefits and pensions to include the risk of the physical and mental health of staff and ensuring employees are set up properly for retirement.
Read: IMAX awarded for education campaign during transition to flexible benefits plan
While consultants may negotiate savings in the short term, rates eventually reset, says Wilkins. His goal is to create long-term strategies for plan sponsors on overall costs year over year, so they have a better ability to budget.
One area the consultancy is promoting is modular, flexible plan design. Employers can start with a base plan, he notes, and offer add-on options with varying cost-sharing models, which are particularly useful for a diverse workforce.
Communicating EAPs
Another area of critical importance is clear communication around employee assistance programs, says Allen, noting a key part of that communication is helping employees understand the value and purpose of those services.
Sarah Beech, chief executive officer of Arthur J. Gallagher and Co., says anxiety levels among employees are so high that some employers are inviting EAP providers to hold listening sessions. For example, one employer hosted a session where employees could ask questions, vent and share what they’re concerned about, she adds.
“There was so much anxiety, [employees] were paralyzed and they weren’t functioning at the levels they normally were.”
After the session, employees realized their employer had no immediate plans to make changes at the company, says Beech, noting it helped staff shut out the outside noise and focus on what was going on internally instead.
Canada’s benefits gaps
• One in five working Canadians aged 18 to 34 said they’re unclear about what their employee benefits actually cover.
• Nearly a third of Canadians with chronic physical (31%), developmental (31%) or mental-health disabilities (28%) said they’re benefits don’t go far enough, leaving them with out-of-pocket expenses they can’t afford.
• 75% of women said they want or need benefits that support women’s health, including services for fertility and menopause.
Source: RBC Insurance survey, 2025
She suggests employers take the time to listen to employees, whether it’s through online channels, weekly meetings or around the lunch room. “Just assuming your people are fine or they’re not anxious isn’t a fair assumption. That’s how turbulence, paralysis and a lack of focus can happen in an organization.”
Prioritizing mental-health support
One of the most significant benefits for employees right now is mental-health support, says Allen. “Not that physical [health] isn’t as important, but if we’re talking about moving through a time of disruption, mental health takes a bit of precedence.”
Five years ago, the coronavirus pandemic kick-started a significant movement towards emphasizing mental-health support, with many people facing isolation and loneliness alongside illness and grief, says Beech.
During that time, many employers started to consider mental-health support as separate from traditional paramedical practitioners and looked at ways to increase their maximum coverage. Both Allen and Beech note this is an area where employers can increase communication.
For Mental Health Month in May, for instance, many organizations took the opportunity to give employees an extra day off or encouraged walking meetings instead of sitting. Some employers also created a mental-health resource guide that explained what’s in the benefits plan, while also including mental-health tips.
It’s more than building tools, says Beech, it’s about making sure people are aware of what’s available and know how to access them.
Building financial resilience
Employers are also much more focused on financial wellness, such as providing employees with tools to help with budgeting or debt management.
Alternatively, they may expand their retirement plans to allow more flexible savings options, says Edelist, noting some plan sponsors are offering the government’s new first-home savings account or a student loan repayment program.
Read: C.F. Crozier supporting employee financial wellness amid uncertain times
“Employers are turning to a more holistic view of their employees because they realize it isn’t just the programs they provide; they need a holistically well employee — mentally, physically and financially.”
Developing emergency savings programs can also be an important tool to help employees build a safety net, adds Allen. Along the same lines, she suggests employers consider offering discount programs to help employees spend less than they typically would on regular items, like utility bills or insurance.
It’s also important for employers to provide financial education, adds Wilkins. “It’s making sure people understand what’s happening with their money. There’s a lot of stress that comes along with not understanding your retirement plan or retirement goals.”
In addition, career counselling can factor into an employee’s financial future, says Allen, noting many people don’t know that EAPs include these services.
And employers can offer upskilling, secondments or other training sessions to help employees build knowledge and consider opportunities outside of their business unit, she adds. “When people feel like they’re growing, it helps them get a sense of resilience.”
Providing tailored support
Discussions between consultants and employers are now going beyond benefits and pension support to explore how economic uncertainty is impacting the business as a whole, says Wilkins, and it’s crucial for consultants to be listening and asking the right questions.
Key takeaways
• Employers are reassessing benefits to ensure they meet employee needs and offer high value, sometimes shifting to more flexible plans.
• Amid economic uncertainty, support for mental health, emergency savings, financial education and career counselling is more important than ever.
• Consultants are no longer just making sales pitches; they’re trusted advisors helping employers navigate volatility through planning, tailored solutions and a holistic view of employee well-being.
“It’s important we’re not showing up with sales sheets and pitching new offerings they should try. We want to ask the right questions and make sure we understand what’s happening with them. If we’re being reactive, we’re probably behind the curve a bit in terms of what needs to be done, as opposed to coming in and being proactive and helping them find those solutions.”
Organigram’s relationship with benefits consultants over the past few years has evolved into a partnership where they’re almost an extension of the team, says McFadden. “We can’t afford to bring in house the kind of depth and expertise they have.”
It’s more than just finding providers that offer good value for the right amount of money, she adds. “They need to understand our unique industry and team needs so they can bring solutions to help us meet some of the challenges we’re facing. I can’t imagine going back to the traditional approach we had a few years ago, where benefits consultants brokered deals compared to the partnership experience.”
Leah Golob is a freelance writer.