Employees and employers alike felt some level of discomfort in 2022. Though we are now two years past the onset of COVID, new stressors stemming from the rippled effects of the pandemic coupled with economic uncertainty have forced a mass employee exodus many know as the “Great Resignation.” While individuals struggle to find roles that align with both their career goals and personal needs, employers are forced to find new ways to engage and retain their existing workforce. Kyla Heap, VP of Growth Resources, at FBMC notes, “As an employee-driven labor market with rising healthcare costs continues to trend, it’s crucial to find a way to offer employees meaningful benefits while also protecting your companies budget.”
One of those methods? Robust benefits packages. Companies that improved their benefits package found it easier to attract new talent while remaining competitive in fierce job markets.
Through reevaluating traditional benefits and introducing unique, voluntary offerings, companies appear more appealing and can differentiate themselves from their competitors.
As the competition for talent increases, it’s a consensus that employees have an elevated expectation toward benefit selection. Reexamining benefits packages once isn’t enough – employers will need to consistently refresh and review their offerings to meet ever-shifting needs. As 2023 approaches, we’re digging into the anticipated benefit trends for next year to see which offerings will be top priority.
It’s no surprise that there’s a direct correlation between health and happiness. Companies that invest in robust and flexible healthcare have seen success in retaining employees. Employers are placing a greater emphasis on providing more affordable and accessible healthcare coverage options as they plan for 2023. Some companies are even going as far as covering 100% of healthcare premiums to ensure their employees are protected against the projected 5% increase in cost in 2023.
Likewise, companies are making room for preventive care options within their benefits matrix. This includes genomic testing, colonoscopy alternatives, early-detection blood tests, reimbursement for travel costs, and extra PTO days for annual wellness exams. Other trends in health, including an increase in late-stage cancer diagnoses, are similarly impacting health care offerings: 50% of employers report that they will cover centers of excellence for cancer treatment in 2023.
13% of respondents in a recent study say they are already seeing more late-stage cancer diagnoses, and 44% anticipate that they will begin to see more in the future.
Family-Friendly Benefit Offerings
With a higher demand in workforce and priorities being redefined by COVID, family-friendly options such as paid family leave, childcare help, fertility assistance, and more are trending benefits to offer.
Family planning and reproductive benefits are a priority for many employers going into 2023 as companies look to maintain or increase their spending in this category. These specialized offerings may include high-risk pregnancy support, lactation support, preconception family planning, postpartum support, pregnancy loss support, and menopause support.
Personalized Voluntary Benefits
“With five distinct generations in today’s workforce, employers are challenged with delivering benefits that resonate with each group. One size does not fit all.” says Heap. Providing an assortment of alternative benefits gives employees the opportunity to customize their package, and helps employers appear attuned to the unique needs of different demographics. Benefits may range from travel expenses, pet care, tuition reimbursement, student loan financing assistance, education continuation, supplemental life insurance, to individual disability insurance. By addressing individual expectations, employers can boost morale and reinforce a positive corporate culture.
Beyond the expanded menu of choices, employers can also benefit by offering employees the ability to opt in or opt out of offerings. For example, working parents might appreciate childcare benefits particularly as childcare prices have increased by 41% over the past two years. Meanwhile, pet parents have shown an elevated interest in pet insurance, with 56% opting into the option in 2022 – a 22% increase from 2020.
Employers are Honing Plans for 2023
For employers, benefits are a vital tool to build positive relationships with existing employees and to attract new talent. Likewise, offerings are increasingly becoming an indication of company values and ideals. As the new year approaches, take a moment to listen to your employees – and see how you can provide benefits that engage them.
Ready to enhance your benefits and stand out from the crowd? Get in touch with our FBMC team to get started and create a benefit plan that works for you.