A fresh start for benefits in 2021

Here are four key trends coming out of 2020 that will benefit both advisors and HR professionals in the new year and beyond.

Workers know they will want the right benefits readily available when their lives intersect with important events or are disrupted by unexpected scenarios.

If there’s anything we’ve learned this year, it’s to expect the unexpected. We’ve seen companies across the U.S. adapt to a myriad of pandemic-driven realities in the workplace, ranging from staff layoffs to more employees working virtually than ever before.

Related: In our NOW normal, be a partner to partners

These changes have compelled employers to rethink benefit offerings and rediscover that showing empathy and demonstrating greater recognition of employee needs goes a long way. Looking ahead to 2021, that same willingness to actively listen, objectively evaluate and course-correct as needed will be paramount. Here are four key trends coming out of 2020 that will benefit both advisors and HR professionals in the new year and beyond.

Demonstrating the full value of a benefits program

Employers are taking a holistic view of their benefits program, rather than looking at individual components. It’s been a tough year for many companies, so absorbing the costs associated with adding more benefits may be out of reach for some organizations. One way to provide more value without added cost is to help educate employees on all that the current benefits provide, both core and voluntary.

“We are seeing clients putting more emphasis on the whole package, not just the individual pieces,” says Brian Billings, director of client management at ARAG. “Educating your team about the value of your benefits package will show how the different pieces can work together—providing peace of mind and coverage when they’re needed most. And it also helps you remain competitive in a still-tough job market.”

It’s also an opportunity to personalize the employee’s benefit experience. Educating staff on a versatile benefits portfolio can help address the changing demands in peoples’ lives, touch on the entire family’s needs, and speak to an increasingly dynamic and diverse workforce.

Elevating health and well-being solutions

Understandably, employees are experiencing a great degree of stress during the pandemic, from concerns about the economy and job security, to worries over their own health and their loved ones’ well-being. Fortunately, discussions of mental health and health care in general are less taboo, and companies are increasingly looking for ways to help their team with this growing issue.

This was illustrated in a recent COVID Benefits Survey conducted by Willis Towers Watson that asked employers about benefit plan changes or ones they expect to make. As Mark Hebert, their national practice leader of voluntary benefits notes, “The most common planned changes were enhancements to health care benefits (47%) and well-being programs (45%).” He adds, “As a key component of health care and well-being, we expect voluntary benefits demand to increase post-pandemic.”

Telehealth in particular has seen a huge jump in use since shelter-in-place and social-distancing measures started. While the accuracy of diagnosis is still a cause for some concern, a rapid introduction to telehealth last spring has led to more people likely using it in the future. It’s no surprise then that 62% of companies plan to invest more in telehealth services going forward.

One of the biggest ways telehealth has made a difference is as a mental health resource. In April 2020—one month after social distancing began to take hold—a 1,000% increase in calls was registered at a federal emergency hotline for those experiencing emotional distress. That same hotline also received around 20,000 text messages, and a poll from a few months later showed that nearly half of adults in the U.S. report a negative effect on their mental health due to stress about the virus.

This is an area where companies appear to be adapting quickly, with 80% of employers planning to invest more in mental health and wellness services. Mindfulness, stress management and resilience are also likely to see an increase in investment. Hebert states that at Willis Towers Watson, they’ve seen a heightened demand for supplemental medical insurance to protect against adverse health conditions.

These are all pieces of a benefits plan that could help employees prosper in the coming year. And what’s good for your clients’ staff is good for their bottom line, particularly as 70% of workers say that concerns and distractions about the virus are affecting productivity.

Caregiving is another issue facing many workers and affecting their well-being, as 1 in 6 were serving as a primary caregiver before the pandemic. This responsibility is hitting even harder as those who act as caregivers navigate remote work and social distancing, with Gen Xers and millennials affected more than others. And the stress won’t go away any time soon, as people make decisions about schooling for younger children and whether long-term care facilities are safe for loved ones.

Applying an agile approach to benefit options

You’re probably somewhat familiar with the “agile” process, where a team manages a project by breaking it up into several stages, inviting constant collaboration, continuous improvement and iteration at every point. This approach, which allows for rapid delivery of high-quality and timely solutions, has not typically been employed by the benefits industry.

But to remain competitive in the battle for talent and retention today, staying current and nimble is more important than ever. This could mean applying agile principles like moving to implement benefits more quickly, being more receptive to input from employees, or moving to off-cycle enrollments. In other words, adding flexibility.

This will be particularly important in the near term, as nearly half of working people are uncertain about what to expect in the next two years. Based on what they’ve experienced in the “new normal,” workers know they will want the right benefits readily available when their lives intersect with important events or are disrupted by unexpected scenarios. Here are a few ways organizations have demonstrated adaptability to their employees:

That last point is especially important going into 2021, as the social justice movement sweeping the country inspires companies to live the brand values they promote and work to be a part of the long-term solution.

Breaking through the communications clutter

Sharing relevant, timely information should always be a priority, but its importance grows dramatically in times of uncertainty. In 2020, the nature and frequency of communications increased, both in terms of what information was delivered and how.

Communications should go out consistently, not just after employees ask for it, anticipating employees’ concerns and using as many channels as possible. Companies will continue to rely on a wide range of vehicles, from the intranet, to messaging and social platforms, to videoconferencing, email, and even traditional snail mail.

As the reentry and recovery begins, communications can engage and strengthen the connections with employees. Clearly, sharing information about how the business is performing, COVID-related and other safety updates, and progress on diversity and inclusion initiatives will continue to be important topics to address.

In addition, there’s an opportunity to help educate employees on their benefits options. Hebert notes, “From our survey, we learned that one of employers’ top HR priorities in the next six months is to communicate more on existing benefits.” He adds, “We have also seen clients focus communications to employees about features that could be especially relevant during this challenging time.”

Here are a few specific benefits that may warrant added messaging during these times of uncertainty:

Many companies are already moving in this direction. A recent study from Wellable shows that 87% of companies plan to spend more money on health education and literacy in the coming year. Financial literacy, employee assistance programs, childcare options, flexible working hours or any other valuable offering may benefit from informational refreshers, too. Research shows the more educated employees are about benefits, the better prepared they are to make good decisions.

Finally, communicating with empathy and understanding will go a long way toward building trust and confidence.

Looking forward

2020 was a year none of us are likely to forget, but looking ahead to the future affords new opportunities we may have never even considered before. As Hebert notes, “While the unprecedented events of this year have been problematic, we are inspired by the resiliency of our clients. They’ve remained focused on meeting the benefit needs of their employees. Most importantly, they’re looking for benefit carriers that are in this together with them.” Based on that assertion, I’m all in. How about you?

Dennis Healy, a member of the ARAG® executive team, focuses on group voluntary benefit products sales to employer groups of all sizes through brokers and consultants.

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