Using the longitudinal Workplace and Employee Survey of Canada, we examine the association between the provision of work-life benefits and various employment outcomes in the Canadian labour market. Whilst the theory of compensating wage differentials proposes an inevitable trade-offbetween higher wages and non-wage benefits, the efficiency wage theory suggests otherwise. The empirical evidence broadly supports the efficiency wage theory, and disfavours compensating wage differentials theory. If bundled appropriately, it appears that work-life benefits are positively associated with increased wages, in addition to a greater number of promotions, enhanced employee morale in the form of job satisfaction, and improved employee retention. The study concludes that employers and employees can both profit when work-life benefits are offered.