5 Employee Benefits Trends You Can’t Afford to Ignore This Year

Over the years, employee expectations have changed regarding how they value their compensation plans and the benefits packages they receive. While in the past, most employee benefits strategies maintained the same overall structure, today, there are more unique needs that businesses should be aware of.

Below, we’ll cover five of the trends commonly found in benefits offering strategies and how these should play into your own objectives.

Priorities Placed on Personalized and Flexible Benefit Offerings

Employees today often seek employers that are flexible in all respects. This applies not only to scheduling requirements but also to the types of benefits they’re offered. To meet this growing demand, businesses should consider modular or tiered benefit structures to give employees more choice in areas such as healthcare coverage and retirement savings.

There are a few ways businesses can help add this level of flexibility. For example, Lifestyle Spending Accounts (LSAs) have become increasingly popular with companies and provide employees with funds for wellness or personal development initiatives. This can cover anything from gym memberships to massage treatments.

Another way to provide some more financial flexibility is to pair benefits with a Section 125 plan. This structure allows employees to pay for specific premiums or qualified benefits using pre-tax dollars, helping them to reduce their overall out-of-pocket costs.

The Ongoing Need for Employee Mental Health Support

Over the last several years, mental health awareness has continued to increase in workplaces. This has led many employees to have higher expectations of their employers regarding specific initiatives to support this.

One way businesses can support their employees in this area is by providing access to Employee Assistance Programs (EAPs) as part of their benefit offerings. Depending on the initial limits of some of these programs, businesses could also choose to extend their coverage to include greater access to personal therapy, coaching, or digital wellness tools.

Still, while these solutions are effective, hearing directly from your employees is often the best way to gauge how you can continue to support their needs. Anonymous benefits surveys are highly effective here. They help organizations gain clear insights into the types of benefits employees value and areas where they can improve their offerings.

Increased Financial Wellness Support Requirements

Financial stress can be a constant distraction for employees, especially younger generations who may not have the same access to savings as older ones. While these are personal situations that every employee must work through on their own, businesses can take steps to help their teams gain better control over their finances.

Offering a 401(k) retirement savings plan is one way businesses can help their teams improve their long-term financial wellness. However, they can also drive some short-term initiatives.

For example, some businesses are now building student loan repayment assistance into their benefits offerings. Similar to retirement savings plans, businesses can contribute a set amount annually to employees seeking to repay their loans, providing additional support in getting out of debt.

The Desire for Expanded Caregiving and Family Support

Many employers are modifying their benefits plans to better support employees who are starting and raising a family. A significant portion of the workforce is now part of the “sandwich generation,” defined as individuals caring for young children and aging parents.

To help prevent burnout among these individuals, businesses are exploring benefits offerings that specifically support these employees. Some benefits may include care concierge services that help employees access additional support when sourcing and paying for assisted living facilities, enrolling in Medicare, or selecting in-home care providers.

Other benefits include expanded maternity and paternity leave, childcare services, and on-site daycare facilities to support working parents.

Higher Adoption of Technology-Enabled Benefits Administration

Benefits programs are also evolving as more technology becomes available. This has created several advantages and increased efficiency for both HR teams and employees.

Advanced benefits administration (BenAdmin) platforms now help centralize all employee benefits data in one place. They also leverage artificial intelligence and automation to deliver a more personalized experience, with real-time recommendations on benefits coverage options and improved human resources planning. This not only makes it easier for employees to make benefits decisions they’re ultimately happy with, but also frees up HR teams to focus on other important initiatives.

For leadership, the real value of these tools is in the business intelligence they provide. Real-time analytics allow HR teams to track utilization and measure the ROI of benefits plans over time.

This gives them the actionable insights needed to make innovative improvements to benefits offerings while ensuring the business remains competitive with the latest industry benchmarks.

Keep Your Benefits Offerings Relevant

Employee expectations have continued to shift regarding preferred benefits. While your business may not be able to justify all of these improvements, it’s essential to continue evaluating how well your offerings align with your employees’ needs. This not only helps you remain more competitive in the industry but also helps you reduce turnover and build stronger, more loyal relationships with your teams.

Frank Mengert

Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm, a leading provider of employee benefits solutions. Frank has built the business by bridging the gap between insurance and technology driven solutions for brokers, consultants, carriers, and employers nationwide.