The post-pandemic future of employee benefits is a work in progress, with many variables driving its trajectory. What specific actions do they take? The right succession plan will guide your training and development plans and prepare employees for their future role. Professional services firm PwC has added a new leave option that allows employees to take on no work for up to six months while maintaining their benefits and collecting 20 percent of their salary. With that in mind, heres a look at what employee benefits will look like in 2023 and beyond. The COVID-19 pandemic is likely to bring long-lasting changes to life in the United States, and those changes will be reflected in employee benefits.. How COVID-19 could affect health, retirement and other benefits even after the pandemic is over is discussed in James A. Klein's article "The Impact of the Coronavirus Pandemic on Employee Benefits" in the second quarter issue of Benefits . Learning from the Employee Benefits Pandemic Experience var temp_style = document.createElement('style'); Latest Increase In Debt Ceiling Underscores 6 Ways To Avert A Crisis, Artificial Intelligence Series 2 Of 5: AIs Influence On The Workforce, Strong Employment, Inflation Means Fed Has To Keep Hiking Interest Rates In 2023, Why Outsourcing Is The Future Of Remote Work, The New Old 4 Models & Muscles For Your 100-Year Life, The 2021 PwC Financial Wellness survey revealed that, leaders should ask themselves, does their culture de-stigmatize mental health, 40% of employers updated their health plans since the start of the COVID-19 pandemic to expand access to mental health. Employers around the country are seeking to fill a near. 16th Jul 2020 After analyzing telemedicine utilization data, ChampionXs Prettol is concerned that some employees could be left out. Please confirm that you want to proceed with deleting bookmark. Implementing more-flexible time-off options requires more than just crafting more-liberal policies. Interestingly, we found almost half of employees feel their current company prioritizes their overall well-being, however, in examining this finding by generation, the research finds fewer Boomers (30%) felt their company prioritizes their well-being compared to Gen-X (48%), Millennials (50%), and Gen-Z (55%). Its clear that there is still a great deal of change yet to happen. And 29% believe there is a negative perception associated with taking leave. The Great Resignation has made attracting. The Future of Employee Benefits: Predictions and Trends to Watch This gap in care is likely to lead not only to a greater-than-normal number of cases, but also to an increase in cases of greater severity. The post-pandemic future of employee benefits is a work in progress, with many variables driving its trajectory. Validity Capital plans to lay off half its staff after its financial backer decided to cut investments in the litigation finance firm. Amy Danise. These changes have been reflected in an increase in companies who have a Board level sponsor for their health and wellbeing strategy; suggesting that more employers are planning to focus on and invest in employee wellbeing as part of their long-term plans. For the longest time, most employee benefits programs have consisted of one-size-fits-all group policies for health and life insurance. Tab will move on to the next part of the site rather than go through menu items. Research from LIMRA-EY4 indicates that three-quarters (76%) of employers think their employees will expect a wider variety of benefit options in the future, and this proportion is greater for employers who have more remote employees. Get our editors' tips and stories delivered weekly. In 2021, the millennial generation overtook Generation X and baby boomers[12] as the dominant working population between the ages of 30 and 60 in the U.S., and will soon be joined by members of Generation Z. This new way of working, and how work and life intersect, also introduces new employee health challenges. With employees plotted on the 9-Box grid, you can begin crafting targeted development plans that address the unique needs of each employee category. The 2021 report, The Future of Time[7], found this desire for a flexible approach in all seven surveyed countries: the U.K., U.S., Australia, New Zealand, France, Germany, and Japan see Figure 2 below. Utilization is just part of the picture when it comes to telemedicine and digital tools. Giving employees control over their time can also be a powerful employee benefit. As such, businesses would do well to recognize remote work as a core part of their business strategy. They are not cutting back, but rather trading off: 98% of leaders are introducing new benefits that employees value and will have a greater impact on the way they now work. Your session has expired. There are still things we are trying to figure out., Ensuring consistent quality of telemedicine and digital health care tools is another concern. Nevertheless, workplaces moved slowly in responding to these evolving employee needs. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { While overall employee well-being appears to be rebounding after a slump at the height of the pandemic, workers now expect support for their mental, physical, and financial well-being as part of their benefits package. People were faced with situations they never thought would happen to them, which created a greater focus on the foundational employee benefits that can provide financial support when people need it most. Trends in structuring employee benefits of the future - from surviving to thriving Here's how progressive companies are spending their benefits dollars to retain and attract a healthy. Employers and employees have signaled a strong desire to make benefits enrollment a more personal and tailored experience. For employers, this has the benefit of eliminating the hassle of having to conduct monthly reconciliation reviews. Katie Dunnington, Head of Absence Management for Group Benefits at The Hartford, Jonathan Bennett, Head of Group Benefits at The Hartford, Adele Spallone, Head of Clinical Operations for Workers Compensation and Group Benefits at The Hartford. In part due to COVID-19, were also seeing a lot of change across both strategy and employee expectations; in Aons 2021 UK Benefits and Trends Survey, 79% of companies responded that they believed they would need to change their benefits offering to meet the needs of future generations. Employers can hire geographically distributed talent and reduce overhead expenses, while employees can gain flexibility, save time, and reduce transportation and some child-care costs. So far, our employees have said that its been monumental for them as a way to let go of their stresses, find better balance, and allow them to take their best selves home. Editor. Unorthodox benefits programs such as these tend to be very popular with younger generations and will likely see exponential growth in the near future. It may be that due to homeworking these methods are not as engaging as they once were; employees may have an element of communications overload and technology fatigue. For example, employees with the option to work remotely are generally more efficient and willing to work longer hours. so that people could choose the one that worked best for them. For instance, when asked about their benefits preferences, employees have repeatedly said that they would like to see more employers offering innovative programs like financial planning workshops, mental health courses and tuition assistance, to name just a few. Starting in 2021, a movement known as the Great Resignation swept through the U.S. workforce, leading to millions of employees quitting their jobs and finding new employment at an unparalleled. Sabbaticals. It fosters growth in future leaders and protects organizational health when key contributors leave. Listen to free podcasts to get the info you need to solve business challenges! Considering the upward trend in companies reporting they believe their EVP has a positive impact on employee engagement, retention and recruitment, its not surprising to see that a further 43% of respondents are planning to formalise an EVP for the first time. Registered in England and Wales. The Future of Workplace Perks: 12 Trends in Employee Benefits Last updated: May 9, 2023 Time to read: 15 minutes Trends in employee benefits have changed radically over the past few years as companies better understand the importance of supporting their workforce beyond a paycheck. 2021 Future of Benefits Study Do Not Sell or Share My Personal Information |. Major banks, such as Deutsche Bank and HSBC, anticipate moving toward a hybrid working model where possible. Traditional . That was better than the 25 percent to 30 percent expected. 3. Too often, leaders fall into a well-being "perks and policies" trap, wondering why their people are burned out and stressed despite access to the latest benefits like company provided standing desks or virtual exercise programs. Nearly half (43%) of organisations have permanently expanded the population of employees who qualify for remote working. The future of employee benefits: flexible, personalised, digital However, this return-to-the-office drive has been met with a lot of pushback from employees who have grown used to the benefits of working remotely. We truly feel that partnering with FutureBenefits of America has increased the value of our 401 (k) program to our employees while making the process seamless and manageable for our staff. This has put a lot of pressure on employers to devise new ways to find and retain talent, with wage increases being the preferred option. Here are 11 underlying trends that will shape workplace volatility in 2022: 1. Google employees are seen at a company cafeteria. The Future of Employee Benefits and the Role of Consultants We also remind employees regularly to use their PTO, says Jamie Coakley, Electrics vice president of people. The Hartford's Future of Benefits Study J.S. We mentioned that the majority of employees would jump ship for better learning opportunities. Joanne Sammer is a New Jersey-based business and freelance writer. Please enable scripts and reload this page. For example, publishing company John Wiley & Sons Inc. in Hoboken, N.J., saw a 35 percent utilization rate when it introduced a mental health app to help its 7,000 employees manage burnout and workplace stress, says Danielle McMahan, Wileys chief people officer. It will be up to HR managers to decide on competitive benefits offerings for enticing employees, as well as insurance agents when it comes to designing their services. While such group policies are easy to put together, they often come with meager payouts and dont transfer when an employee switches jobs. These changes in family structures have also created a generation where many people are sandwiched between caring for children and caring for elderly parents. The COVID-19 pandemic and resulting lockdowns forced many businesses to place all or most of their employees on a remote model. Beyond navigation, the path to achieving personalization is understanding more of what employees are experiencing and better meeting those needs. The Hartford is not responsible for and makes no representation or warranty regarding the contents, completeness, accuracy or security of any material within this article or on such sites. While some companies have already moved away from one-size-fits-all benefit solutions, many more must create a personalized approach to benefits. Employers with a hybrid or remote-first work strategy may want to offer reimbursement for home-office furniture and supplies. SAP North America has overhauled its entire PTO system by uncapping the number of sick days available to employees, simplifying the process for obtaining a leave of absence and doubling its crisis leave allocation from five days to 10. LIMRA and EY[4] research found that six in 10 employers predict that a substantial percentage of employees will work remotely at least some of the time in the next five years. It has to be clear that caring for a sick child is not just a workday at home with a sick child.. This diverse product and protection demand creates pressure on employers and insurers to develop solutions that meet all needs and evolve with employees to accommodate every stage of life. The pandemic created fertile ground for the implementation of virtual tools to support employees physical and mental health. And such remote work can benefit both employers and employees, experts say. Such technology is already a part of many workplaces and will continue to shape the labor market. Bob Gaydos, is the CEO and founder of Pendella, a company that offers a digital life insurance and disability insurance shopping system designed for professional employer organizations. Regardless, research . As I/O psychology explains, the elements that make specific companies productive are as diverse as the companies are themselves. By embracing customization, leveraging technology, prioritizing well-being, and navigating compliance challenges, organizations can create robust benefits packages that attract and retain top talent. 4. In addition to connecting employees with traditional counseling services, Canidaes EAP will focus on life management programs, including child care resources, elder care assistance, homebound-education support, and weight and nutrition resources, says Karen Casey, the companys head of people and culture in Stamford, Conn. Recognizing the stress employees are under, a growing number of organizations are tweaking their allocations and policies on paid time off (PTO) as they prepare for a post-pandemic world. Planning Benefits for a Post-Pandemic World While telemedicine and digital tools have helped to fill some of the health care gaps recently, many people skipped nonemergency health care altogether, including annual preventive screenings for conditions such as high cholesterol, high blood pressure, diabetes and cancer. . The Hartford's Future of Benefits Study, which polled U.S. workers and human resources benefit decision makers in early March 2020 just before the COVID-19 outbreak in the U.S., and again in mid-June, found 73% of employees now say they value the insurance benefits their company offers them, down from 80% three months earlier. Employers also appeared to be tuned in with employee needs; 91% said they believe employee expectations are changing, and nearly half (40%) said they believe their current benefits do not meet the needs of the existing generations in their workforce. If employers continue supporting remote or hybrid work arrangements among their . The Hartfords latest Future of Benefits Study, taken nearly a year after the onset of the pandemic, offers a glimpse into the future workplace and trends in employee benefits. Workplace coverage will be easier to move. The future of employee benefits holds tremendous potential for organizations committed to enhancing employee well-being and engagement. The company has been reducing hours for some on-site cafes. Trend Name. Whats important to understand is that these trends are largely being driven by intense competition in the workforce as employees increasingly recognize that they hold a lot of negotiating power when deciding on an employer. As disruptions from the pandemic continue, more workers are reporting symptoms of prolonged and acute stress. Group health insurance and retirement savings accounts are not enough. One that leads us into the new realities of workplace culture and benefits. Understand the importance of financial wellness benefits and be clear about what your company offers. The goal needs to be creating an inclusive well-being benefits package that meets the needs of all segments of workers. For additional details, please read The Hartfords legal notice at www.thehartford.com. Thats one of the reasons SAP North America introduced pet-related benefits during the pandemic. On the topic of personalization, its important to hone in on what specific segments of your workforce may need. Companies can start this process by conducting regular surveys and segmenting the data by groups such as generation, work environment (in-person, remote, or hybrid), or gender to identify where there might be benefit gaps and opportunities. A lot of kids were out of school for a year, says Parker, manager of employee benefits and relocation at retailer Costco in Issaquah, Wash. She notes that 35,000 of the companys 165,000 employees have children under the age of 16 and some of them are going to need help once the pandemic abates. A Benify survey[8] in Europe found that employers need to enable employees to more easily fold work into their lives, rather than vice versa. What will your future workforce want and need? Better still, the use of digital payment mechanisms means that employers can increase their array of benefits without increasing their administrative burden. To help in that effort, Workhuman publishes the Human Workplace Index, a monthly survey of 1,000 full-time U.S. workers. Reuters. Costco, for example, enhanced and expanded its diabetes management program to provide free equipment for monitoring blood sugar, as well as materials and coaching for employees with either Type 1 or Type 2 diabetes. Employers that offer flexibility in how, when and where work gets done are likely to be viewed more favorably by current and potential employees. In 2022, we will see an increase in the strategic importance of employee relations (ER) because of the need to create fair and transparent workplaces. Employers will continue to expand their use of employee surveys, find new ways to study the data they already have (reviewing utilization of existing benefits and determining if they should offer something different), and look to partner with companies that can provide a more holistic view of a companys data. 1. Your article was successfully shared with the contacts you provided. The majority of Americans looking for new jobs expect their prospective employer to offer paid parental leave (67%), commuter benefits (66%) and a childcare stipend (52% . Our goal is to make benefits as flexible and personalized as possible, says Dan Healey, SAP North Americas vice president of human resources. The second wave was fielded from June 15-June 30, 2020 and included 567 employers and 1,038 employees. They need to address employees overall well-being in more meaningful, holistic ways that are also easy to use and cost-effective. The Future of Employee Benefits - Labor Law Education Center: Learn Access to mental and behavioral health support is likely to be ongoing as employers consider post-pandemic employee benefits. SAP North America introduced mental health days as a way to promote awareness of and de-stigmatize mental illness. This study, which was fielded in February 2021 and previously in March and June of 2020 - is part of The Hartfords ongoing effort to deliver new insights about U.S. workers and their benefit preferences, as well as trends in the benefits employers provide to their workforce. This was especially true for Gen-Z, where 67% strongly agree or agree that well-being benefits will be a priority for them in evaluating new job offers. Electric, an IT provider in New York City, mandates that its 290 employees take a companywide day off on the first Friday of each month. One in five workers said their mental health is worse than it was this time last year, according to a survey by the American Psychological Association. Employers around the country are seeking to fill a near record high 11 million job openings. The company also offers options such as working a 70 percent to 80 percent schedule instead of full time, as well as compressed, four-day workweeks. Even as the pandemic recedes, challenges could still emerge from localized outbreaks that close schools or create new restrictions in communities. The Future of Employee Benefits | The Chicago School The 15 Best Employee Benefits to Offer in 2023 For optimum engagement, employers will have to integrate into their overall financial wellbeing strategy whether they are utilising financial education, technological support such as apps or more physical support such as workplace saving schemes. The MetLife Employee Benefit Trends study[11] reported that more than 70% of employers predict employee wellbeing will have the greatest impact on the workplace of the future, followed by remote working, and employee mental health, stress, and burnout. Providing a mix of digital tools and personal guidance can help employees understand their options and maximize their benefits. Thats no longer good enough. As a result, telemedicine and digital tools have gained levels of utilization and acceptance in just a few months that would have taken years to achieve pre-pandemic. Fairness and equity will be the defining issues for organizations. Perhaps as a result of the financial uncertainty caused by the COVID-19 pandemic, we have also seen that 75% of companies are planning to enhance their communications around financial wellbeing. Is the four-day week the future of work? You may opt-out by. In the past 2 years, employers have been through a rollercoaster of ups and downs. A survey by Aon[2] in the U.K. found that 70% of the workers surveyed expect to be in the office for some days each week: This is evenly split between 1-2 days and 3-4 days a week. Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com, Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment. Were in the midst of a shift in how companies view employees; were seeing more companies adopt an employee-centric model in how they approach employee benefits and the wider employee experience. Despite the challenges, its clear that the change is not completely water under the bridge. By testing and evaluating the effectiveness of a variety of new channels all in partnership with their insurance and technology providers they were able to makebenefits education more accessible and understandable. When employees were surveyed on what their employer could do to improve their overall well-being, in addition to additional paid time off, the top benefits identified were fairly evenly ranked as: improved mental health support (29%), adequate staffing (28%), better health insurance (28%), and financial wellness training (27%). No one had a playbook for the pandemic, Prettol says, so we used the playbook on employees returning from maternity leave as the cornerstone in how we trained managers on remote-work management.. Let's connect and come up with better solutions together. Watershed moments. Surveys by Aon[5] and Capgemini[6] found that flexible working/working from home and more flexible working hours are two of the top employee expectations coming out of the pandemic. At Electric, Coakley is digging deeper into aggregate user data for insight into how and how often these tools are used. Employees had every reason to sign up for such policies since they didnt require a medical exam or and employees didnt have to answer any health questions to qualify. Our Pulse Survey research shows that for nearly three-quarters of organisations, over half of their traditionally office-based workforce are now working remotely. Benefits traditionally have been mainly a one-size-fits-all model. Is your organisation ready? Your article was successfully shared with the contacts you provided. Neither references to third parties, nor the provision of any link imply an endorsement or association between The Hartford and the third party or non-Hartford site, respectively. Key Benefits are Expanding and Shifting Those we spoke to confirmed the toll the pandemic has had on their employees and their business: decreased productivity and retention, increased. Enter and space open menus and escape closes them as well. When ChampionX was transitioning to remote work in the early days of the pandemic, managers found that digital tools designed to support employees returning to work following childbirth were helpful when managing a newly remote workforce. Phased retirement, which has been advocated in recent years as a way to keep individuals from leaving the work force entirely, could now shift to. As employers try to curb spending wherever possible ahead of a feared recession, well likely see more centralization of HR teams use of tech platforms and corresponding human support options. Since then, they seemingly have reimagined or rewritten almost every workplace policy, from hiring and onboarding to remote working and business travel. Recent market activity shows momentum across three areas: product solutions, platform solutions, and a distribution trend we call the retail-ization of benefits. The future of employee benefits consulting in 2023 promises exciting developments that prioritize personalization, mental health, financial wellness, remote work, and technology. Our 2021 UK Benefits and Trends survey showed that only 28% of companies have a clear Employee Value Proposition (EVP). The Future Of Work: Offering Employee Well-Being Benefits Can Whether it's daycare at the office like Patagonia offers or a subsidized service for back-up care, child care assistance is a growing perk as companies are finding more ways to help working parents. Employees are now prioritizing mental health programs, virtual healthcare platforms, care programs (for both children and elders), and services that support work-life balance, such as home cleaning or grocery delivery. A survey of HR leaders and C-suite decision-makers in the U.S.[10] revealed that 89% of employers are deprioritizing at least one type of benefit as a result the pandemics impact on traditionally centralized workforces. We check in with employees who have not scheduled or taken their PTO.. As we have explored in this detailed article, personalization, mental health support, financial wellness, work-life balance, and technology-driven solutions are key trends that will shape the landscape of . The New York firm has so far laid off six of its roughly 20 employees and plans to maintain between seven and 10 workers going forward, Ralph Sutton, the chief executive officer, said in an interview. With that in mind, the future of benefits is likely to see a reallocation of employer funds away from wage increases and toward more modern and customizable benefits. Roy Strom. Do they understand their mental health benefits? 2. These 4 trends will define the future of employee benefits Family structures around employees have also changed. Benefitfocus 2022 State of Employee Benefits | Large Employer Edition The first wave was fielded from Feb. 27-March 13, 2020, just before the pandemic escalated in the United States, and included 761 employers and 1,503 employees. This is a BETA experience. However, while this shift is already under way, employers are already asking themselves where employee benefits will be in the next few years. Unless employees can bring home things like office supplies, stationery, desks and chairs, companies may want to consider providing an allowance or budget from which workers can purchase necessary provisions, says Kelly Chance, director of national benefits delivery with Insperity, a professional employer organization based in Houston.