Despite offering generous benefits packages, many Canadian employers are seeing key benefits go unused or remain effectively invisible to employees, say several experts.
A recent report by ADP Canada on employee satisfaction found compensation and benefits scored just 6.1 out of 10, the lowest-rated workplace satisfaction factor among Canadian employees. The gap between what’s offered and what’s actually used points to a deeper issue around benefit design, communication and trust, often resulting in so-called ‘ghost benefits’ that look good on paper but go unused in practice, the report noted.
“If a benefit is hard to access or employees don’t believe it’s really available to them, they’re not going to use it,” said Dr. Parbudyal Singh, professor of human resource management at York University, in an emailed statement to Benefits Canada.
Employers may underestimate the complexity of benefits plans, particularly when it comes to mental health. Paula Allen, global leader of research and client insights at Telus Health, pointed to a major barrier uncovered in recent research by the organization. “The biggest barrier is a lack of clarity about what’s actually covered. When 22 per cent of workers are unclear about their healthcare coverage, it’s no surprise that valuable mental health supports go unused.”
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Many employers rely on dense plan booklets or one-time overviews, but complex language and fragmented information often leave employees unsure of what they can access and how to access it.
Some companies are starting to close that gap by using digital platforms that improve visibility into benefit usage. “One of the best things about offering benefits digitally is the ability to track usage and get real-time insights,” said Andrea Wynter, vice-president of people at ADP Canada, in an emailed statement to Benefits Canada. “With five generations in the workforce, you’ve got people at very different life stages. That data helps tailor offerings so they’re meaningful to everyone.”
Wynter said organizations that combine usage trends with data on engagement, absenteeism and workforce demographics are better equipped to meet employee needs. “That allows them to adjust what they offer or run targeted awareness campaigns. You’re not just offering benefits and hoping something sticks. You’re creating support that helps with both retention and recruitment.”
According to Telus Health’s findings, younger workers are especially likely to face uncertainty. “Workers [younger than age] 40 are twice as likely as those [aged 50 and older] to be unclear about their coverage,” said Allen. “This reflects both a digital experience gap and an onboarding issue.”
She noted younger workers expect mobile-first, intuitive tools but often encounter outdated systems that feel disconnected from the apps and platforms they use daily. “Gen Z and millennials want self-serve platforms that are as easy to use as booking travel or ordering food.”
Wynter agreed that benefits literacy remains low in many workplaces. “The biggest reason people underuse their benefits is that they don’t know what they have access to or how to use it. A lot of the time, the information just isn’t delivered in a way that feels simple or relevant.”
Singh added communication strategies should be tailored by generation and delivery style. “You’ve got to meet employees where they’re at. That means using plain language, breaking information into digestible pieces and delivering it in ways people actually engage with, like short videos or micro-learning modules.”
Allen said effective communication combines visuals like comparison charts and infographics with multi-channel delivery, including email, mobile apps and in-person touchpoints. “People are far more likely to pay attention during life events like onboarding or open enrolment. You want to meet them in those moments with timely, clear information.”
She also noted peer recommendations and manager-led walkthroughs can help bridge gaps in understanding. “Employees often trust information from colleagues more than formal [human resources] communications.”
Remote and contract workers often face additional barriers. “It’s harder for them to feel connected to the full scope of what’s available,” said Wynter. “That’s why we’re seeing more flexible benefits like virtual health services, childcare and elder care. It’s not just about perks. It’s about giving people what they actually need to do their jobs well and live their lives.”
Singh said ghost benefits are both a structural issue and a cultural one. “They result from poor design and low workplace trust. If benefits aren’t clearly explained or easy to use, people won’t bother. Add long wait times or confusing steps and it becomes a bureaucratic wall. In workplaces where trust is already low, people might not even believe the benefits are real. So they stay on paper but out of reach.”
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