Retaining Top Talent in Ontario’s Shifting Economy
As we are now in the final quarter of 2025, Ontario’s economy is growing slowly, and many organizations are hiring cautiously. That being said, retaining your best employees is more critical than ever; turnover is costly, both financially and culturally.
At a recent Durham Networking Association meeting, James Dempsey presented "How Group Benefits Drive Growth and "Attract Top Talent." This presentation prompted me to reexamine the measurable benefits that group benefits can bring when discussing job opportunities with candidates. Employees who feel supported, through health, wellness, financial, and lifestyle benefits, are more engaged, loyal, and motivated to stay.
In this month’s newsletter, for employers, I share how investing in group benefits can strengthen retention, boost engagement, and give your organization a true competitive edge. For candidates, it’s time to gain insight into what skills employers are seeking and prepare for those roles.
Elaine
What Ontario’s Economy Means for Hiring This Fall.
According to the Ontario Budget Report (budget.ontario.ca/2025), the provincial economy is navigating a period of modest growth, and organizations and candidates alike are feeling the effects. Understanding these trends is key for both employers planning their hiring strategies and professionals evaluating their next career move.
Ontario’s GDP grew by approximately 0.8% in 2025, reflecting steady but slowing economic activity. Unemployment ticked up to 7.9%, signalling slightly more available talent, though top-tier technical and specialized candidates remain scarce.
What This Means for Hiring
Cautious Hiring Patterns. Many companies are focusing on critical hires rather than broad expansion. This presents an opportunity for flexible staffing solutions such as contract, consulting, or fractional talent to meet project needs without long-term commitments.
Demand for Specialized Skills. With productivity growth stagnating, organizations are prioritizing talent that can innovate, streamline operations, and adopt new technologies.
Resilience in Infrastructure and Public Projects. Large infrastructure projects continue to drive hiring.
Strategic Talent Sourcing Is More Important Than Ever. Companies are scrutinizing recruitment ROI more closely.
How Candidates Can Navigate the Market
For job seekers, the current environment presents opportunities for contract, consulting, and high-value specialized roles. Those with skills in process improvement, technology adoption, and project delivery will stand out.
Bottom Line
Ontario’s economy may be growing slowly, but strategic hiring and talent acquisition remain essential. For organizations, this is a time to focus on critical roles, leverage flexible staffing, and invest in high-performing teams. For candidates, it’s a time to position themselves for the future where their specialized skills deliver measurable impact.
Retaining Top Talent Through Group Benefits.
In today’s competitive job market, attracting skilled professionals is only half the challenge — keeping them is just as critical. For many organizations, group benefits play a key role in employee retention, helping employees feel valued, supported, and motivated to stay long-term.
Why Group Benefits Matter. Group benefits go beyond health coverage. They represent a company’s commitment to employee well-being, financial security, and work-life balance. Employees increasingly look for benefits that:
Cover health and dental needs
Support mental health and wellness
Offer retirement planning and financial security
Provide flexible or lifestyle perks, such as telehealth or fitness programs
When employees feel their employer invests in their holistic well-being, they are more engaged, loyal, and productive.
The Retention Connection.
Research consistently shows that employees who are satisfied with their benefits are more likely to stay with their employer. High turnover is costly, both financially and culturally.
Companies that prioritize comprehensive, meaningful benefits can:
Reduce turnover costs, including recruiting, onboarding, and training
Build stronger, more stable teams
Increase employee engagement and job satisfaction
Foster a culture of trust and loyalty
Designing Benefits for Retention.
Not all benefits are equally effective for retention. To maximize impact, organizations should:
Tailor offerings to workforce needs - Survey employees to understand which benefits matter most.
Communicate clearly and consistently - Employees only value benefits they understand and can access.
Include wellness and mental health support - These have become top priorities post-pandemic.
Review and update regularly - Benefits should evolve with employee needs and market trends.
Investing in your team through group benefits is more than an expense; it’s a competitive advantage. By prioritizing people, you attract top talent, retain high performers, and drive engagement, all while reducing turnover costs, boosting productivity, and supporting employees and their families. A thoughtful benefits program not only strengthens your employer brand but also protects your business for long-term growth, often in a more tax-efficient way than cash compensation.
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