Why benefits and pensions must be preserved amid economic strain

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Co-operators’ Joan Ganas on why pulling back on benefits during economic uncertainty may cost more than it saves

WHEN ECONOMIC pressure builds, it’s not unusual for employers to re-evaluate costs line by line − but Joan Ganas, vice president of group benefits at Co-operators, cautions those considering employee benefits as a lever to pull for short-term savings. “Security is what matters most to employees in periods of uncertainty,” she says. “They need to feel confident that there are systems in place to protect them and their families. It’s not just about access to care; it’s about knowing that care is there when they need it most.”

The Co-operators Group Limited is a leading Canadian insurance and financial services co-operative with more than $62 billion in assets under administration. Co-operators provides financial solutions and security through multi-line insurance, wealth management products, institutional asset management, and brokerage operations. Co-operators is a group of companies with one common goal: creating financial security for Canadians and our communities. Because it is a co-operative, business decisions are guided by Co-operators’ values of inclusion and responsible and sustainable development.

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“That’s when employee assistance programs, wellness resources, and even short-term disability support become critical. These programs can speed up recovery, reduce time away from work, and allow people to return to productivity with the right resources in place”

Joan Ganas, Co-operators

Ganas sees firsthand how economic conditions influence employee needs and expectations. In times of stress, she explains, benefits become more than a contractual offering, they become a signal of stability. Employees who don’t feel supported may begin to look elsewhere for that sense of protection, and in a competitive labour market, that can quickly become a retention issue. Those pressures are amplified when workers face challenges to their physical, mental, or financial health. And those challenges rarely occur in isolation. “This is precisely when well-being is tested,” says Ganas. “That’s when employee assistance programs, wellness resources, and even short-term disability support become critical. These programs can speed up recovery, reduce time away from work, and allow people to return to productivity with the right resources in place.” Employers who respond to economic pressure by scaling back support, she says, may see short-term financial relief but open the door to longer-term consequences. High turnover, presenteeism, absenteeism, and burnout are all potential outcomes of removing a benefits structure that keeps workers grounded.

The hidden costs of cutting back

Published June 16, 2025

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People

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Benefits

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External contributors

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“Treating benefits and pensions as expendable can create a lack of trust at the exact moment employees need to feel valued. That’s the real concern”

Joan Ganas, Co-operators

Ganas points out that the consequences don’t end with the employees who leave. “The ones who remain are often left to fill in the gaps, and that makes them more susceptible to burnout,” she says. “That’s especially true for high performers, the people you most want to retain.” Without the right supports in place, productivity and morale can deteriorate across the team. “Treating benefits and pensions as expendable can create a lack of trust at the exact moment employees need to feel valued,” she says. “That’s the real concern.” What benefits offer, Ganas emphasizes, isn’t just financial coverage, it’s access: knowing they can get health and dental services, mental health resources, disability protection, and critical illness support gives employees confidence that they can manage what comes their way. That sense of preparedness directly contributes to financial resilience that extends beyond the workplace.

Group retirement and savings plans are part of this ecosystem as well. While they may not address an immediate crisis, they remove a different kind of stress: the fear of financial instability down the line. “During challenging times, the mental load people carry is heavier,” she notes. “Offering long-term financial support helps ease that burden.” This blend of support structures doesn’t just improve individual outcomes; it helps preserve organizational cohesion. When people feel protected, they are more likely to stay engaged. When they feel abandoned, they disengage or worse, they leave. “During a recession, we sometimes see disability claims decrease,” Ganas notes, “but that doesn’t mean people aren’t struggling. There are other incentives keeping them at work.” In her view, it’s not a sign of improved health, but

rather of unspoken strain. This underscores the importance of having wellness and mental health programs in place to help employees quietly recalibrate without needing to take extended time away. Ganas puts it plainly: “Employees remember who met them with support during a downturn. That memory translates to loyalty.”

Co-operators is driven by its purpose of financial security for Canadians and their communities. Through its values-based approach, it also applies a critical lens to how each action and decision – from insurance products and solutions to investments and partnerships – can help Canadians to embed resilience in a way that contributes to long-term prosperity and societal betterment. That’s why Co-operators has partnered with other purpose-driven organizations like Prosper Canada and the Financial Resilience Institute to better understand its role in helping its clients and communities become more resilient to economic stressors. According to the Financial Resilience Institute’s index model, only one in four Canadians is considered “financially resilient,” meaning they could endure a financial shock with little effect on their overall financial resilience. That leaves the majority exposed to the fallout of unplanned life events. Group benefits and retirement plans, Ganas says, are essential tools for closing this gap. “Everything we do is viewed through the lens of building resilience,” she explains. “We want to make sure people are able to withstand hardship and come through stronger.”

Walking the talk: supporting resilience from the inside out

Even the best-designed programs won’t have impact if employees don’t know they exist or don’t understand how to use them. That’s why Ganas says communication is just as critical as coverage. The employees you have today are the ones keeping your business steady in uncertain times − driving resilience, continuity, and even growth. But their impact only lasts as long as they stay. Not sure which benefits your employees value most? Don’t

Communication and cost efficiency go hand in hand

guess − ask. Direct feedback ensures you protect the programs they truly care about, rather than cutting support that could drive dissatisfaction or increase turnover. “Employers need to leverage what they already have,” she says. “If you’ve got an employee assistance program, promote it. If you have wellness resources, whether through us or elsewhere, do make sure employees know what’s available. “Just pointing people in the right direction can make a huge difference, and it costs nothing. The more proactive employers are, the better the outcomes. Less presenteeism, less absenteeism, less turnover. That’s where the productivity gains come from.” Co-operators has also structured its offerings to help employers navigate these challenges in a sustainable way. Those who place both their group benefits and group retirement savings plans with Co-operators can access preferential pricing. The company has also implemented a five-pillar drug management strategy aimed at reducing costs while maintaining support for employees. One of those pillars − a biosimilar and generic pricing model − has proven especially effective. It can save employers 25−50 percent per person per year on some of the most expensive biologic drugs, getting employees the medication they need but in a more sustainable, affordable way for the overall plan. “We always find a way − it’s not about cutting support, it’s about delivering it better.” As employers look to the months ahead, Ganas urges them to think beyond immediate budget pressures and consider the workforce they want to retain and rely on in the future. “Benefits aren’t just a cost, and they’re certainly not a discretionary expense. They’re a commitment,” she says. “They tell your employees that you see their value, even when times are tough.” And in difficult times, that message may matter more than ever.

Short-term cuts, long-term risk: Saving now can lead to turnover, burnout, and low morale. Benefits show commitment: In tough times, support signals stability and care. Resilience needs real support: Health and financial programs help employees cope and stay productive. Communication drives value: Promoting existing benefits boosts usage and impact. Smarter savings options: Co-operators offers cost-saving strategies without reducing coverage.

Why cutting benefits can backfire