Employee Benefits Survey
Clothing and department stores account for 17 per cent of total retail sales, which has remained constant over time.
After four years of contraction, employment rebounded in the first two quarters of 2019.
Both British Columbia and Ontario have seen relatively constant growth since 2010.
Quebec’s share of clothing and department store retail has been sliding since 2010, likely due to the province’s population aging more rapidly than the Canadian average.
Large retailers continue to close stores, with Gap, Home Outfitters (Hudson’s Bay), and J.Crew all expected to close locations in Canada in 2019.
Fast-fashion giant Forever 21 will shutter all 44 of its Canadian locations by the end of the year.
The industry has been challenging for both very small and very large players, with significant declines in the number of businesses with fewer than 10 employees and more than 100 employees since 2015. By contrast, there are now 1,000 additional Canadian clothing and retail stores with 10 to 19 employees.
The median annual income for sales representatives is $17,800, while for cashiers it is $9,900. Together, they represent half of the industry’s workforce.
Since the industry relies on low-wage workers, recent minimum wage increases in Ontario and Alberta have put upward pressure on operating costs. Ontario’s retail trade employees saw a
5.2 per cent increase in wages between December 2017 and April 2018
GDP growth is expected to be weak, averaging just under 2 per cent from 2020 to 2024. This is due to larger economic trends that affect Canadians’ wealth—higher debt levels, rising interest rates, and weaker home prices.
Employment will enjoy a strong boost this year, growing 8.5 per cent in 2019. However, this will be short-lived. A 2.1 per cent decline is in the cards for 2020, and little to no growth is expected between 2021 and 2024.
As COVID-19 distancing measures continue into the year, Canadian organizations are exploring ways to reduce any overhead they can. How is this affecting employee benefits coverage?
The Conference Board of Canada asked organizations across the country how they are managing employee benefits—both for active and laid-off employees.
Note: Survey responses were collected on Monday, April 27, 2020. These findings are part of a Conference Board series on work and pay during the COVID-19 pandemic. Stay tuned for updates as this situation evolves.
Working Through COVID-19
Most organizations staying the course on employee benefits
Q: What changes has your organization made to the following types of coverage?
Have made or are considering making changes
Have not made changes
32%
68%
(n = 333; percentage of organizations)
Source: The Conference Board of Canada.
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Working Through COVID-19 series.
Here’s what we found.
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of organizations have not made—nor are they considering making—any changes to the employee benefits offerings we surveyed.
68%
Leading the pack, 46 per cent of utility companies have made or are considering making changes to employee benefits coverage. Retail trade follows at 44 per cent of companies. Almost all organizations in these industries are looking to increase coverage as opposed to reducing it.
Across all organizations that have made changes, 46 per cent increased their paid sick leave.
The employee benefits offerings we surveyed
Group benefits:
Health care spending account
Prescription drug coverage
Vision care coverage
Hospital accommodation
Out-of-country emergency medical care coverage,
Orthopedic supports
Paramedical services (e.g., massage therapy, chiropractic coverage, physiotherapy)
Dental plan(s)
Life and accident insurance plans:
Group life insurance
Accidental death and dismemberment insurance
Critical illness insurance
Long-term care insurance
Disability and casual absence plans:
Paid sick leave
Short-term disability
Long-term disability
In response to COVID-19, some organizations are tweaking their benefit offerings to include virtual healthcare—no waiting room or commute to a clinic required.
How common is this offering?
Q: Has your organization added either of the following services as a result of COVID-19?
Source: The Conference Board of Canada.
(n = 333; percentage of organizations)
Benefits go virtual
15%
30%
12%
43%
45%
15%
18%
22%
What about benefits for laid-off employees?
Q: Is your organization continuing benefit coverage for laid-off employees?
Note: Total does not add to 100 due to rounding. Source: The Conference Board of Canada.
(n = 129; percentage of organizations)
Most laid-off employees still covered
Health Care Spending Accounts (HCSA) allow for more flexibility around health benefits for employees. They can also function as an additional benefit beyond traditional group benefits.
As some organizations may consider HCSAs an additional expense, several are choosing to no longer provide this benefit to their laid-off employees.
Of the organizations that are still continuing benefits coverage for laid-off employees, nearly three in four have kept the same cost-sharing arrangement. Another 20 per cent are now taking on the full cost of premiums for laid-off employees where they hadn’t during their active employment.
Q: During the layoff period, what is your benefit premium cost-sharing arrangement for
laid-off employees?
Note: Total does not add to 100 due to rounding. Source: The Conference Board of Canada.
(n = 113; percentage of organizations)
One in five employers now picking up the tab
Q: For employees who have been laid off, is your organization continuing to
provide Health Care Spending Accounts?
Source: The Conference Board of Canada.
(n = 129; percentage of organizations)
Some cuts to Health Care Spending Accounts
Yes, full amount
Yes, reduced amount
No
69%
28%
3%
Cost-sharing arrangement remains the same
Employer now fully covering 100% of premiums (wasn't previously)
Employer covering a smaller share of premiums
71%
20%
4%
6%
Employer covering a greater share of premiums
Yes, for all
Yes, for most
Yes, for some
68%
12%
9%
12%
No
May 4, 2020
Amanda Holmes
Kelsey Coburn
Senior Research Associate
Research Associate
types of coverage?