Pandemic-accelerated changes in employee benefits
Where are changes being seen most as a result of the coronavirus?
Long gone are the days when “medical, vision, and dental” entirely summed up employee benefits packages. As time marches forward and more companies are invested in a happy and healthy workforce, benefits programs have evolved, as well. In addition to workforce and recruiting-driven changes, major external events have shaped employee benefits offerings. Case in point: COVID-19.
Related: Uncertainty and financial stress driving closer scrutiny of employee benefits
The pandemic has accelerated the deployment of certain offerings and boosted the visibility and importance of others. Where are changes being seen most as a result of the coronavirus?
Screening, contact tracing and testing
As employers face the complex and unique challenge of developing a safe return-to-workplace strategy and plan for their employees, customers and vendors, we have seen a significant deployment in COVID-19 screening, contact tracing and testing solutions. These types of services are leveraging technology to scale their solutions very quickly within the U.S. marketplace and beyond.
Telehealth
Arguably the most significant impact resulting from the pandemic has been seen in the telehealth space. While usage had been gradually increasing, its availability, scope, and utilization skyrocketed in April as much of the United States shut down, and in-person doctor’s visits became extremely limited. This closure forced people to examine just how far telehealth could go and sped up how these programs were extended to employees.
Many companies that were in the process of rolling out telehealth programs expedited their timelines, and those who may have been on the fence were pushed to decide to offer this option. However, telehealth is not limited to just physical medicine.
A Centers for Disease Control survey from June found that adults reported “considerably elevated adverse mental health conditions associated with COVID-19.” The combination of increased mental health issues and a lack of in-person doctor availability has expedited the rapid expansion of behavioral telehealth offerings. In addition to new and emerging digital-based behavorial health solutions, we’re also seeing the next phase of Employee Assistance Program (EAP) evolution.
Employers are increasingly recognizing the link between employee health and well-being and organizational performance. and the pandemic has amplified this realization. The “next generation” of EAPs are utilizing more advanced technology, are providing multiple access points and are doing a better job at integrating other health and behavioral health vendors. In addition to evolving solutions specific to stress, depression and anxiety-related conditions, the market continues to develop greater specificalization in areas such as cognitive behavioral therapy, resiliency, and autism.
After the pandemic, the delivery of care is likely to return to some of the previous norms, but the utility and efficiency of telemedicine are here to stay. For example, in behavioral health, users have an immediacy in which they can access care, which, when combined with modern technology like video conferencing and camera phones, could have a lifesaving effect.
Wearable technology
Digital health solutions are popping up at a rapid pace and the pandemic has accelerated growth in certain areas. One area that was “under construction” before the pandemic but has rapidly been brought to market has been “wearables,” both in terms of the technology itself and how it is used. For example, Apple recently debuted the latest model of its Apple Watch, which within its health app, can generate an ECG reading, track your sleep patterns and detect blood oxygen levels. Beyond the benefit to the user, this type of technology can also have broader impacts.
With wearable devices rapidly expanding their medical tracking capabilities, given appropriate permissions, this data can be incorporated into employee wellness programming, helping to take medicine from reactive to preventative. For instance, if an employee’s device indicates consistently poor readings in a particular area, it can send a trigger notification directing that person to a specific resource within an employer’s healthcare plan or a specific point solution. While many large employers have been actively integrating new technology, it is only with the pandemic that we have seen this trickle down to middle-market employers.
Child care and financial literacy
A Boston Consulting Group survey found that amid the pandemic, 60% of U.S. parents say they have had no outside child care. According to the 2019 Society for Human Resource Management’s (SHRM) Employee Survey, only about 8% of employers offer either subsidized child care or non-subsidized on-site, company-affiliated child care.
Remote learning has also emerged as a key concern with parents and is having a direct impact on employee productivity. But even as schools reopen, parents will likely still face difficulties not only paying for but even finding adequate child care. This struggle, and the realization that employees are losing focus and productivity as they also manage children in the home, may lead to more employers offering child care assistance options. With that said, we are starting to see an increase in client inquiries and RFP activity specific to primary and back-up childcare and eldercare services.
As the pandemic puts many in a tight spot monetarily, financial literacy programs are also growing in popularity. Financial stress can quickly lead to burnout, having adverse mental and physical health impacts. Not only can these programs improve the health of employees, but also, according to SHRM, they are shown to boost employee focus, productivity and understanding of overall benefits packages.
The evolution of employee benefits is an ongoing process that will inevitably continue to shift as the world and employees’ needs change. Employers, with the help of a knowledgeable broker, must keep their fingers on the pulse of this change and maintain flexibility. For a happy, healthy, and productive staff, and thus an overall improved bottom line, the best employee benefits programs evolve to meet the needs of those they serve.
Paul Rogers is senior vice president and regional president of employee benefits for Brown & Brown, Inc.
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