The competition for attracting talent to an organization isn’t only about who pays the most anymore — it’s also about who supports employees the best. With several strategies for employers to show they care about their employees’ long-term wellbeing, one of the clearest signals is implementing a group savings plan.
The good news is that a group savings plan does not need to be complex or costly to make a meaningful impact. With the right design and support, it can become a practical, high-value part of your total rewards strategy, helping you attract and retain talent without relying solely on salary increases.
Employees are looking beyond salary
Today’s prospective candidates are evaluating total compensation, not just salary, when deciding where they want to work. Group savings plans are becoming an increasingly important part of that package and consistently rank among the most valued workplace benefits for Canadian employees.
The Healthcare of Ontario Pension Plan’s (HOOPP) 2024 Canadian Employer Pension Survey backs up the importance of offering retirement benefits like group savings plans, reporting that:
- 69% of employers believed these benefits would help them recruit talent in the labour market1
- 78% of employers felt these benefits would help them retain current employees1
The connection between financial wellbeing and retention is also clear from the employee’s perspective. Morgan Stanley at Work’s 2026 State of the Workplace Financial Benefits Study reports that 85% of employees are more likely to stay with an employer that actively supports their financial wellbeing.2
Together, these findings point to a simple truth: employees want security, flexibility, and support for the financial goals that matter to them. By implementing a group savings plan, you show employees your organization is invested in their future, not just their output.
It’s also important to recognize that employees increasingly want support that goes beyond retirement. A well-designed plan can help them save for both short- and long-term financial goals, such as:
- Home purchases, including first homes supported through FHSAs
- Education
- Emergency funds
Giving employees the flexibility to direct contributions where they benefit most can make the plan feel more relevant, often resulting in stronger participation and appreciation.
Modest employer contributions can still make an impact
Across companies, employees are increasingly asking about employer contributions during the hiring process. It’s worth noting, though, that employer contributions don’t need to be large to be valuable.
Even a modest employer contribution, such as 1% to 3%, can help boost participation, strengthen employee loyalty, and differentiate your organization in a competitive talent market.
For employees, an employer contribution gives them a reason to engage with the savings plan and helps them build confidence in their financial future. Employers can also build flexibility into the plan by allowing employees to direct contributions toward options such as an RRSP, spousal RRSP, or TFSA to support long-term savings.
Flexible options to build a group savings plan that fits your organization
You don’t need to overhaul your compensation structure to offer a competitive group savings plan. Many employers choose to introduce a match to their savings plan through one of the following methods:
- Offering a smaller merit increase and redirecting a portion into a savings match
- Starting with a modest match, such as 1%, and increasing over time
- Implementing a capped match to control costs while still offering value
There is always a way to design something sustainable that still resonates with employees. The key is meeting them where they are, because a plan that’s easy to understand, supported by clear communication, and feels relevant to their real‑life financial goals is a plan they will actually use.
Support that lightens the administrative load
For organizations without an existing group savings plan, administration can feel like one of the biggest barriers.
This is where Cowan can make your life easier. We act as an extension of your HR team, taking on the heavy lifting involved in launching and managing a group savings plan so you don’t have to. Our support can include the following:
- Plan design and benchmarking
- Implementation and onboarding
- Ongoing administration support
- Governance and compliance
- Employee education that connects with people
In other words, you do not have to figure it out alone. Cowan helps handle the complexity, so your organization can focus on the value the plan brings to employees – and get the credit.
Moving forward with implementing an effective group savings plan
A group savings plan doesn’t have to be expensive or time‑consuming to make a difference. With the right approach, it can be a simple, yet effective method of modernizing your total compensation package for employees. The result is a significant and meaningful impact on not only attracting and retaining top talent, but also boosting employee wellbeing. Additionally, when employees feel the plan reflects their needs today and their goals for tomorrow, participation and appreciation naturally rise.
If you’re wondering what a group savings plan could look like for your organization, Cowan can help you explore plan design, benchmarking, and implementation options that fit your goals and workforce needs.
