Boost Employee Retention with Group Retirement Services (GRS)

In the current economic climate, with the rising uncertainty caused by measures like tariffs, it is easy to feel overwhelmed and apprehensive.

As Canadian employers seek to retain top talent and reduce turnover, offering a Group Retirement Savings Plan (GRS) can become a key differentiator in your compensation package. At Wescan Insurance, we help businesses implement retirement solutions that are flexible, tax-efficient, and designed to grow with your team.

Choose the retirement plan that suits your business from the options below.

The Power of Profit Sharing: Deferred Profit Sharing Plans (DPSP)

A Deferred Profit-Sharing Plan allows employers to contribute a portion of company profits directly to their employees’ retirement savings. What makes it especially attractive is that contributions are entirely employer-funded; employees don’t have to put in a dime to benefit. These contributions grow tax-free, meaning employees won’t pay taxes on them until they are withdrawn.

The Flexibility of Group Registered Retirement Savings Plan (RRSP)

A Group RRSP allows employees to contribute automatically through payroll deductions. Employers can choose to match a portion of these contributions, boosting the employee’s retirement savings and demonstrating an investment in their long-term well-being.

For employers, Group RRSPs are straightforward to set up and maintain, making them ideal for companies seeking a low-barrier to entry into the retirement benefits. Matching contributions can be structured around budget constraints and hiring goals, offering flexibility in both design and cost. As a recruitment and retention tool, Group RRSPs deliver both impact and practicality.

From an employee perspective, the appeal is clear: lower taxable income, tax-deferred growth, and the flexibility to access funds. Employees also have complete control over how their savings are invested, enabling them to tailor their investment strategy to align with their personal financial goals and retirement plans.

Furthermore, employees benefit from a lower Management Expense Ratio (MER) – the administrative fee charged for managing investments – compared to what they would typically pay when contributing to an RRSP through retail investment channels, such as traditional banks or mutual funds.

Long-Term Security with Defined Contribution Pension Plans (DCPP)

The Defined Contribution Pension Plan offers a structured and secure path to retirement. Both employers and employees contribute a set percentage of salary into the plan, with the final retirement benefit depending on the investment returns over time4. Because these funds are locked in until retirement, DCPPs create a strong incentive for employees to make a long-term commitment.

Employees benefit from pooled investment options, often with lower fees, and the peace of mind that comes with a disciplined, employer-backed savings plan. From the employer’s perspective, DCPPs offer predictable contribution costs, helping with long-term financial planning and budgeting. This helps promote stability and loyalty.

WHY INVEST IN A GROUP RETIREMENT PLAN?

The Return on Investment (ROI) in Retirement Benefits

Investing in group retirement plans isn’t just beneficial for employees; it’s also a wise business investment. Studies consistently show that comprehensive benefits, including retirement savings plans, lead to increased employee engagement and productivity.

When workers feel more financially secure, they’re more focused and less likely to seek employment elsewhere. Moreover, offering a GRS plan can extend the average job tenure by 6 years, helping your company avoid problems with employee retention.

A Strategic Advantage for Employers

When designed thoughtfully, group retirement savings plans do more than tick a box – they drive results. Employer contributions are fully tax-deductible and exempt from certain payroll costs. Vesting periods in DPSPs and the locked-in nature of DCPPs encourage long-term retention., Group RRSPs offer employees investment control and short-term liquidity, attracting employees with more diverse needs. By personalizing your benefits strategy, you can tailor your plans to your team’s unique needs.

And perhaps most importantly, offering retirement plans helps position your company as an employer of choice. In a landscape where employee expectations are rising, the ability to support their financial future can be a powerful differentiator.

Citations

1. Income Tax Information Circular. Canada Revenue Agency.
2. RRSPs and Other Registered Plans for Retirement. Canada Revenue Agency.
3. Group Retirement Savings. Common Wealth.
4. DCPP, DBPP and employer pension withdrawal rules. Canada Life.
5. Employer-sponsored pension plans supporting increased employee productivity: Survey. Benefits Canada.