Canada groceries and essentials benefit: a new opportunity for Quebec SMEs

With the rising cost of living and pressure on purchasing power, Canadian employers are looking for new, practical ways to help their employees. Among these solutions, the “groceries and essentials benefit” is rapidly gaining popularity in Canada. For Quebec SMEs, this movement represents a strategic opportunity to stand out in the war for talent, while remaining aligned with the economic reality of their teams.

According to a 2024 Statistics Canada survey, over 60% of Canadians say that food has become one of their most difficult expense items to absorb. Meanwhile, a 2024 Mercer report indicates that nearly one in three employers in North America is considering adding cost-of-living benefits (groceries, transportation, essentials) in the next two years. Integrating a groceries & essentials benefits program is therefore no longer a “nice to have”, but a concrete lever for attracting, engaging and retaining your employees in Quebec.

1. Understanding the groceries & essentials benefit in Canada

The groceries and essentials benefit is a package of benefits offered by employers to help employees pay for essential expenses: groceries, hygiene and household products, and sometimes even certain over-the-counter medicines or baby products. It is appearing in several forms in Canada:

• Monthly or quarterly grocery allowances.
• Gift cards or prepaid cards for use at local grocery chains or markets.
• Partial reimbursement on presentation of receipts for targeted products (food, household essentials).
• Integration into a flexible lifestyle spending account, including the essentials of daily life.

In Canada, several signals confirm the rise of this type of advantage:

• Food inflation remained well above overall inflation in 2022-2023, and although the pace is slowing in 2024, high prices persist, according to Statistics Canada.
• HR firms such as Mercer and Willis Towers Watson report that the No. 1 priority of North American employees is now direct financial support in the face of the cost of living, ahead of traditional office benefits.
• Pilot internal food subsidy programs (grocery vouchers, monthly credits) achieve employee satisfaction rates of over 80% in several industry surveys.

For a Quebec-based SME, the challenge is not to imitate the big groups with massive budgets, but to structure a targeted, measurable advantage aligned with the corporate culture. This is where technology (CRM, automation, e-commerce, employee portals) becomes a key ally, and where partners like Nuaweb can support the implementation of effective digital tools.

2. Statistics 2024-2025: why this advantage is becoming a major HR lever

To understand why the groceries & essentials benefit is particularly relevant for Quebec SMEs in 2024-2025, we need to look at some recent figures.

First, on the household side:

• Statistics Canada’s 2024 data show that the share of household budgets devoted to food continues to rise, especially in low- and middle-income households.
• More than 1 in 5 Canadians say they have had to reduce the quality or quantity of their food purchases over the past 12 months because of rising prices.
• Quebec households in the regions are particularly hard hit, with sometimes limited access to affordable fresh produce.

Then, on the corporate side and talent retention:

• North American HR studies show that one in two employees now consider “cost-of-living benefits” as a determining factor in staying with an employer.
• Organizations that offer targeted financial support (groceries, transportation, housing) see a reduction in turnover rates of up to 5 to 10 percentage points, according to some Mercer analyses.
• A clear, personalized benefits program also increases engagement scores in internal surveys (eNPS) by 10 to 20 points in several cases studied.

In Quebec in particular, the demographic and economic context reinforces the interest in this type of advantage:

• The job market remains tight in many sectors (services, technology, healthcare, manufacturing). SMEs have to compete with larger companies offering higher salaries.
• The cost of housing combined with rising food prices is putting pressure on employees, especially in major centers like Montreal, Quebec City and Gatineau.
• Young talent (aged 25-35) places increasing importance on concrete, flexible benefits rather than symbolic advantages (free fruit in the office, designer offices, etc.).

For an SME, offering a well-structured groceries & essentials advantage can :

• Increase the perceived value of total compensation without necessarily exploding the payroll.
• Reduce turnover costs (recruitment, training, lost productivity).
• Strengthen the employer brand by communicating a real commitment to employees’ financial well-being.

To maximize impact, it’s essential to plan, track and measure these benefits. A CRM management system or connected employee portal can help you centralize data, automate allocations and analyze the use of these benefits.

3. How Quebec SMEs can structure a groceries & essentials program

The main concern of SMEs is often budgetary: “Can I really afford this type of benefit?”. The answer is yes, provided you structure a program adapted to your reality and take advantage of digital tools to limit the administrative burden.

Here are a few concrete models that Quebec SMEs can adopt:

3.1. Monthly or quarterly allowance

You define a fixed amount (e.g. $40 to $80 per month) that each employee can use for groceries or essentials. This allowance can be :

• Paid via a reloadable prepaid card.
• Reimbursed on presentation of receipts via a portal or online form.
• Integrated into a flexible expense account where the employee chooses how to use the money.

Using a CRM-type tool or a connected HR portal, it is possible toautomate the sending of reminders, the collection of receipts and the validation of reimbursements. This is the type of workflow that the Nuaweb team can help you set up, with customized integrations.

3.2. Partnerships with local and online retailers

Another option: negotiate agreements with grocery stores, local markets or e-commerce platforms. For example:

• Exclusive discounts for your employees at selected partners.
• Dedicated promotional codes for the purchase of weekly grocery baskets.
• Bonus loyalty programs when purchases are made via a specific portal or online store.

In this scenario, having a solid digital infrastructure is crucial. A well-designed e-commerce platform, coupled with a coupon or points system, can facilitate the management of these benefits and provide a seamless experience for employees.

3.3. Integration into a larger lifestyle account

For greater flexibility, some SMEs choose to group several benefits (groceries, transportation, wellness, training) into a single flexible spending account. Employees can then decide which portion to allocate to groceries or essentials, depending on their personal situation.

This requires a good digital user experience. A clear, mobile-accessible portal with reimbursement history, available balance and simplified rules is a major asset. The creation of customized, secure web platforms is one of the services Nuaweb can deploy for this type of initiative.

In all cases, the key for Quebec SMEs is to :

• Define an overall budget and an average amount per employee.
• Choose a model that’s easy to explain and manage.
• Use digital tools (CRM, automation, portals, integrations) to reduce manual management.
• Clearly communicate rules and benefits to employees.

4. Digitizing and automating your benefits program with AI and CRM

A well-thought-out groceries & essentials benefits program can quickly become complex if everything is managed by hand (Excel files, e-mails, paper receipts). For an SME, the risk is to turn a good idea into a heavy administrative burden. This is whereAI, CRM and web solutions become strategic allies.

4.1. Centralize employee data and benefits in CRM

A CRM adapted to internal management can serve as a central point for :

• Store employee profiles (status, seniority, benefit category).
• Track monthly and annual allocations used.
• Generate reports on program adoption and costs.
• Segment your employees to test different benefit levels.

With Nuaweb’s expertise in CRM management, you can set up automated workflows for sending alerts, validating receipts or updating balances, considerably reducing the time spent by your HR team.

4.2. Using AI and chatbots for employee support

Artificial intelligence and chatbots can simplify the experience for your employees:

• An internal chatbot (on your intranet or Teams/Slack) can answer frequently asked questions: amount available, eligibility rules, deadlines, etc.
• An AI assistant can analyze submitted receipts (photos or PDFs), automatically extract amounts and categorize eligible expenses.
• Smart reminders can be sent to employees who don’t use their benefit, toincrease programadoption.

On the Nuaweb website, you’ll find information on the implementation of AI and chatbot solutions tailored to the needs of Quebec SMEs, including the automation of HR and administrative processes.

4.3. Benefits portal or website

To provide a seamless experience, many SMEs opt for a dedicated benefits web portal, accessible at all times and in French, where employees can :

• Check your groceries & essentials benefits balance.
• Submit receipts or claims.
• Access clear FAQs, guides and policies.
• See partner offers (discounts, promotions, online stores).

Custom website design allows you to build this type of portal perfectly aligned with your brand image, secure, and integratable with your CRM, HR systems or even your e-commerce platform if you offer food baskets or essential products via an online store.

By combining CRM, AI and intuitive web interfaces, you can turn a simple financial benefit into a consistent, rewarding employee experience, while keeping control over costs and management.

Conclusion: turning cost-of-living pressures into a competitive advantage

The 2024-2025 context in Canada and Quebec is clear: the cost of groceries and essentials is weighing heavily on households, and employees increasingly expect concrete support from their employers. Quebec SMEs that know how to implement a structured, transparent and well-communicated groceries and essentials benefit program will stand out in a highly competitive job market.

Rather than endure the situation, you can transform this reality into a strategic advantage for your company:

• By offering targeted financial support that really improves your employees’ quality of life.
• By strengthening your employer brand and your ability to attract and retain talent.
• By leveraging technology (CRM, AI, web portals, e-commerce) to automate and manage your program without overloading your teams.

If you’d like to explore how to structure or digitize a groceries & essentials benefits program for your SME, the Nuaweb team can help you: diagnose your needs, choose the right tools (CRM, AI, web portal, e-commerce), customize integrations and automations.

Ready to turn your employee benefits into a real growth driver? Schedule a free consultation now with Nuaweb by visiting the Contact section, and find out how we can adapt groceries and essentials benefits to the reality of your Quebec SME.