Beneficial trends: 3 areas to watch in 2020
A common theme running through benefit offerings today is that providers must be ready and willing to adapt and evolve.
It may be easier to sit back and think that compensation packages only need occasional refreshing, but to stay in line with others in a constantly evolving industry climate, you’ll need to help employers meet ever-changing staff needs.
Based on my years of work as a voluntary benefit provider, I can say that while there has been increased interest from employers and brokers, voluntary benefits are still not offered by the majority of companies. This rise in interest illustrates the need for expertise among brokers who understand that the needs and wants of employees are unique.
Related: 3 things every modern benefits brokerage needs
But what can brokers, employers and benefits providers look forward to in the coming year? Here are three topics to watch.
1. Technology and data
Nearly a quarter of the way through the 21st century, the tech boom that began decades ago shows no signs of slowing down. This is both good and bad for companies, because while capabilities are growing, so is the need to stay on top of these changes in technology.
Going into 2020, the push/pull of artificial intelligence will also continue. While it can make the hiring process easier, there is still rightfully some concern about the inherent biases of the technology. The same goes for algorithms used for recruitment, which are only as competent as the builders behind them.
Directly related to benefits, telemedicine and telehealth options are likely to continue gaining market share in the next few years. More than half of all hospitals make use of it already, and the advantages are numerous. Cost reductions, ease of use and accessibility make telemedicine an obvious choice for inclusion in health offerings. Providing more efficient ways to get care will be an asset to any organization.
Moving everything online is a great way to keep people connected—at least virtually, if not physically. But living online also opens up personal data to sometimes nefarious consequences. Data security and compliance concerns should be near the forefront of any decision. From initial research of new plans to contract negotiations, enrollment, and continued use, consider how and why benefits providers will be using employees’ information.
But don’t let these considerations scare you off. There are many ways to leverage technology to create an improved user experience. Using data to target specific groups for communications can drive participation. And document automation can free up time for employees to focus on other projects. When put to good use, technology can help companies move beyond the ordinary—an attractive goal in today’s competitive hiring climate.
2. Personalization
A key part of staying competitive is remembering to consider the whole employee experience. If your clients provide a well-rounded benefits package, that’s a good start. But not all personnel are the same, and a one-size-fits-all approach isn’t what they’re looking for. The American workforce is highly diverse, and that diversity provides opportunity to think outside the box. Voluntary benefits allow room for movement here.
Workers will take the time to evaluate these and other options before accepting a new job or choosing to stay at a company. If someone else is offering flexible work hours or student loan reimbursement, what are your clients providing as an incentive to choose their organization? Other things to consider could be:
- Are there options focused on those without dependents and families?
- Do offerings cover all aspects of life, including mental and physical health, financial wellness, etc.?
- Is there flexibility, such as being able to work from home or bring a pet to the office?
- Will workers at every stage of life find things that work for them?
Fortunately, we’re seeing more customization options coming from insurance providers, so there is cooperation from top to bottom here. If employees are working in a store or restaurant with no access to a computer but access to a cell phone, employers and brokers might customize the plan offering to meet the needs of that population differently.
Once it’s understood that there are nuances and diversity in staff needs, that recognition should be taken a step further to acknowledge the importance of meeting those demands across the board. A user of our company’s legal insurance benefit, for example, specifically called out “the range of options for different kinds of needs” as an advantage.
3. Work-life balance
Hand in hand with personalization of benefits is ensuring that employees are able to maintain a healthy and productive work-life balance. A focus on rewarding positive behaviors—with more emphasis on prevention—could be key.
A recent ARAG study found that employees are seeking out information about benefits, making themselves better educated consumers and also discovering how to best make use of their options. Obviously, household budgets and personal finances play a huge role in those decisions.
For a few years now, the focus on financial wellness has been increasing, and it’s a trend that won’t be going away any time soon. Organizations are trying to make sure their employees are looking at things like this in advance and advocating for such benefits.
Human resources professionals have also seen more engagement from employees when it comes to overall wellness—not just financial. Whether through a worker’s own initiative or automatic enrollment in programming, it’s clear that the black and white obligations of home and work are actually a solidly gray area.
This may be especially true for one portion of the workforce in particular. Generation X (those born roughly between 1965 and 1981)—sometimes referred to as the “sandwich generation”—increasingly finds itself between two worlds. Even while occupying more and more seats in management at the office, this age group is also shouldering an immense burden at home: that of caregiver to both children and aging parents.
Caregiving can be mentally, physically and financially exhausting. While the hope is that employees can handle these duties in addition to their professional careers, in the office, there is rarely a way to know if the stress and responsibility are becoming too much. Added to this, long-term care insurance is generally expensive and can be cost prohibitive.
Companies can provide assistance both through other voluntary benefits or through services to help caregivers navigate the documentation, lifestyle changes and emotional toll that caregiving entails. Suggested programming to assist with these matters could include workshops that cover everything from what to expect as a caregiver, to mental health and coping mechanisms for stress.
Looking to the 2020s
A common theme running through benefit offerings today is that providers must be ready and willing to adapt and evolve. It may be easy to make generalizations about employees for future planning, but it’s hard to predict how technology, the economy and a myriad of other variables will affect your clients’ organizations and the lives of their teams.
Even when open enrollment has already passed, it’s never too late to implement a benefit—the key is finding what is right for your clients and their employees.
Right now, the steady economy and employment rates mean that workers have more options and breathing room. Employees are looking for unique perks and they are actively asking questions—even though they may not be going directly to HR with inquiries. Instead of maintaining the status quo, embrace the diversity of your clients’ workforces to explore the options that are the right fit for them.
That diversity can also mean evolution from continual adaptation, and it will likely become even more prevalent in the coming years. To attract and retain top talent, the advantages offered by companies must be continuously competitive. One way this can be achieved is by maximizing value while minimizing the cost to employees—and voluntary benefits are an easy way to get started.
Dennis Healy is a member of the ARAG® executive team. Dennis is a passionate advocate for legal insurance because he has seen firsthand how it helps people receive the protection and legal help they need. He has more than 25 years of insurance industry experience, with a primary focus on the sale of group voluntary benefit products to employer groups of all sizes through brokers, consultants and employee benefit exchanges.
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