The Navigator

Boosting Engagement with Employer Matching Contributions


Helping employees prepare for their financial futures is one of the most meaningful ways to nurture loyalty. Employer fully or partially matching the contributions made by employees to Group Retirement Savings Plans (GRSPs) not only offers financial support but also creates an environment where employees feel secure and valued, encouraging long-term engagement with the company. 

Why Employer Matching Contributions Matter 

Matching contributions show employees that their future financial stability is a priority. As the cost of living rises and retirement planning becomes more complex, employers can provide a significant benefit that extends beyond standard compensation. 

Here are some key reasons why employer matching contributions matter: 

Financial Security Fuels Engagement: Employees who can grow their retirement savings with employer support are more likely to invest themselves fully in their roles. Matching contributions not only demonstrates that the company cares about their long-term financial well-being but also creates a sense of stability and trust. This strategic investment in employees’ futures leads to increased engagement and ultimately enriches workplace culture. 

Thoughtful Benefits Create Loyalty: While competitive pay is essential, the true differentiator lies in a benefits package that prioritizes employees’ futures. Research consistently shows that employees are far more likely to remain with companies that offer solid retirement benefits. For instance, a recent study by the Canadian Payroll Association, found that 68% of employees say they would be more loyal to employers who invest in their financial wellness. This demonstrates that employer matching contributions reflect a commitment to financial health, significantly encouraging job satisfaction and retention.  

A strategic approach to retirement benefits indicates that employees are viewed as long-term partners rather than short-term resources.

Maximizing Employee Earnings Through Matching 

A strategic option to consider is how employer matching can stretch an employee’s raise even further. For instance, instead of offering a 4% salary bump, consider splitting it into a 2% salary raise and a 2% contribution match to their GRSP. This approach provides more financial value than a full 4% raise on its own. 

Why? Contributions into an RRSP come with tax advantages. Unlike regular income, which is taxed immediately, GRSP contributions grow tax deferred. This means employees end up keeping more of their earnings, and their retirement savings compound faster. It’s a financial strategy that optimizes employee take-home pay while building future security. 

For more information on the tax advantages of Group Retirement Savings Plans (GRSPs), see our blog on Navigating the Tax Advantages of Group Retirement Savings Plans. 

Final Thoughts: Small Actions, Big Impact 

Incorporating employer matching contributions into your retirement savings package is a simple yet powerful way to increase employee loyalty. It fortifies financial security, increases engagement, and sends a clear message that you’re invested in their long-term success. By applying GRSP matching, you can turn salaries and raises into effective instruments that nurture both your workforce and your business objectives. 

As you plan your compensation strategy, don’t underestimate the impact of matching contributions. It’s a practical way to enhance employee satisfaction, reduce turnover, and build a prosperous workforce. A small investment in their future today leads to significant rewards tomorrow, for everyone involved. 

At Navigate Benefit Solutions, we’re here to help you maximize your Group Retirement Savings Plan. Let us design a tailored strategy or matching program that aligns perfectly with your organizational goals and empowers your employees to secure their financial future. Reach out today to get started! 

Navigate Benefit Solutions: Supporting your business in attracting and retaining top talent through expertly managed group benefits.