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EMPLOYEE ENGAGEMENT BROAD

Higher wages, toxic workplaces shaping employee attraction, retention in 2026: experts - Benefits Canada.com

unknownDecember 11, 2025 2 min read
retention employee attraction toxic workplace leadership compensation benefits pay transparency canada 2026 workforce trends

Editorial summary. This is our text summary of an article published by gnews-employee-engagement-broad. Charts, figures, and the author’s full voice are at the original — read it there .

Editorial verdict

Credible industry survey data. The retention drivers are well-supported and consistent with broader HR literature, but the findings reflect Canadian employer trends specifically — generalise with caution beyond that context.

Executive summary

This article reports on findings from a Conference Board of Canada survey presented during a recent webinar, focusing on the key drivers of employee attraction and retention heading into 2026. The central argument is that while compensation remains the dominant reason employees leave or consider leaving their jobs, toxic workplaces and poor leadership represent a substantial and strategically significant secondary driver. Key findings include: approximately 80 per cent of departing employees cited higher pay, 58 per cent cited better benefits, and nearly half attributed their departure to poor leadership or toxic environments. Additionally, 83 per cent of employees identified good leadership as important to job satisfaction. On the compensation side, average pay increases of 3.4 per cent in 2025 and 3.2 per cent projected for 2026 slightly outpace inflation. The article also highlights that one-third of organisations prioritise benefits as a strategic attraction and retention tool, and 39 per cent are increasing investment in benefits communication. The implication drawn is that leadership quality and effective benefits communication are as strategically important as wage levels in shaping workforce stability.

reportRelevance: 7/10Multi-Region

Key insights

  • 1Approximately 80 per cent of employees who changed jobs cited higher pay as the primary driver, while nearly half also cited poor leadership or toxic work environments as a reason for leaving.
  • 283 per cent of employees report that good leadership is important to job satisfaction, linking leadership quality directly to engagement, productivity, and retention risk.
  • 3Average employer pay increases of 3.4 per cent (2025) and 3.2 per cent (2026) slightly outpace inflation, but benefits communication is emerging as a critical gap — with 39 per cent of organisations increasing focus in this area.

Practical takeaways

  • Organisations treating benefits as a strategic retention tool are also identifying communication gaps as a priority — strong benefits programmes have limited impact when employees do not fully understand what is available to them.
  • Poor leadership and toxic workplace culture are not only exit drivers but also engagement and productivity risks among employees who are merely considering leaving, suggesting early intervention in leadership quality has measurable workforce stability implications.

References

  1. Conference Board of Canada (2025).Conference Board of Canada Employee Attraction and Retention Survey.

Source & Provenance

Verified
Publisher / Source

gnews-employee-engagement-broad

Author

Not specified

Publication Date

December 11, 2025

Article Type

Industry Report

Geography

Multi-Region

Content Type
Unknown Source Type
Original Source

Original source metadata is preserved. AI analysis is generated separately.

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