Nonprofit work is driven by mission and people dedicated to making a difference. But chronic underfunding, high caseloads and crisis response fatigue have caught up with the sector’s workforce. Thirty-four percent of Canadian charities identified staff burnout as a top challenge heading into 2026, alongside mounting pressure from increased service demand (36%) and persistent difficulty recruiting and retaining qualified staff (31%).1

When financial pressure mounts, benefits programs can seem like an easy place to cut costs. A strong benefits strategy is one of the most direct ways nonprofits can support nonprofit employee retention and engagement. Organizations that invest thoughtfully in their people, even with limited budgets, are better positioned to deliver on their mission.

Meeting your workforce where they are

Understanding nonprofit workforce challenges is the first step toward building a more effective benefits strategy. The sector experiences higher long-term disability and chronic illness rates than for-profit organizations, driven by the sustained stress of mission-critical work with limited resources. Nonprofit employee wellbeing benefits utilization has increased significantly, in part because telehealth has made services more accessible.

Employee assistance programs (EAPs) are among the most valuable yet underused tools available. A well-structured EAP gives employees confidential access to short-term counselling, mental health referrals, financial guidance and legal support, typically at a cost comparable to a dental or vision plan. The challenge is that many employees don’t know what’s covered or how to access the services available through these programs. Organizations looking to strengthen their employee support have several practical options:

  • Wellbeing spending accounts: Flexible employer-funded accounts that employees can use for mental health services, fitness or stress management give organizations a low-cost, high-visibility way to demonstrate investment in nonprofit employee wellbeing.
  • EAP communication: Actively and consistently promote what your EAP covers and how employees can access it. Awareness within your organization drives utilization.
  • Manager training: Equipping managers to recognize early signs of burnout and connect employees to available resources is one of the most effective ways to improve mental health outcomes and EAP utilization.
  • Digital mental health tools: Platforms offered through your benefits provider at little or no cost can extend support beyond traditional EAP services.
  • Flexible work arrangements: Hybrid or remote work options give employees greater flexibility over their schedules and are low-cost wellbeing investments with meaningful returns.

Strengthening financial wellbeing and benefits value

Employee financial stress can significantly drive disengagement in the nonprofit sector, where compensation typically lags behind the private sector. Employer contributions to group registered retirement savings plans (RRSPs) and defined contribution pension plans remain an important driver of retention. Organizations that can’t commit to higher match rates should consider offering financial education and retirement-planning tools to show investment in their people’s long-term stability.

Voluntary benefits like accident insurance, critical illness coverage and supplemental life are practical and valuable resources for employees that don’t require major budget commitments. Available at favourable group rates, these options help employees manage financial risk and reduce stress.

Prioritizing workplace mental health also makes financial sense. Burnout costs employers $5,500 to $28,500 per employee per year, depending on role. For a company with 500 employees, that’s $3.4 million per year in lost productivity and salaries.2 With employer health benefits costs projected to rise by approximately 7% in 2026, mental health investment is one of the few benefits decisions that can help offset that pressure rather than add to it.3

With clear communication and intentional design, even a modest investment in benefits protects nonprofit employee retention and engagement.

Connect with HUB International’s nonprofit and employee benefits specialists to explore benefits strategies that support your workforce without stretching your budget.

1 Carleton University, “Setting Priorities, Building Strength: How Charities Are Entering 2026,” February 12, 2026.
2 Mental Health Research Canada, “Mental Health in the Workplace 2025,” accessed June 2026.
3 CPA British Columbia, “Inflation Update 2026: What’s in Store for Employee Benefits Plans,” December 9, 2025.