Canadian HR professionals face rising benefit costs and tech skills shortages as the economy evolves
Human resource professionals in Canada face rising health benefit costs and a shortage of workers with essential technology skills, as per the Financial Post.
The MercerMarsh Benefits’ People Risk Report 2024 reveals health benefit costs are the primary concern.
Factors such as mental health challenges, the COVID-19 pandemic, and declining health-care systems are driving up the global costs of benefits packages.
In Canada, benefit costs are surpassing inflation due to chronic conditions and high uptake rates, with 40 percent of HR and risk professionals concerned about managing these costs.
“Our benefit programs, which we use to protect our employees in times of need, have traditionally been focused on care for the ill,” said Alex Boucher, workforce health, safety, and growth leader at Mercer Canada. “We now know that there’s immense value and savings in supporting preventative and more holistic care.”
Canada Life notes that benefits packages can cost small businesses up to 15 percent of their payroll, while larger companies might spend up to 30 percent. Additionally, the lack of tech skills and sub-optimal HR technology are significant concerns for Canadian HR professionals.
The report highlights that a shortage of highly skilled workers in rapidly evolving fields like artificial intelligence challenges employers' competitiveness. “Organizations that are not tech organizations are now finding that they need tech skills,” Boucher said.
“Tech is now becoming part of every workplace.” The absence of cybersecurity expertise also worries 39 percent of Canadian HR professionals about potential cyberattacks. “There isn’t an organization that isn’t exposed to tech risk,” Boucher added.
Earlier this month, a cyberattack at London Drugs Ltd. forced the retailer to close for over a week, as it was “unwilling and unable” to pay a $25m ransom.
