Employee benefit trends in 2021: Flexible benefits for a flexible workforce
This past year has caused many businesses to re-examine the nature of work.
The month of December is a time of reflection, where we look back at the events of the past year as well as forward to what we can expect in the year to come. Though no one likely would have predicted the chaos of 2020, from it, we can see a few key themes that will have a long-lasting impact on the nature of work and employee benefits.
Related: Is flexible working a positive for employers and employees?
This past year was marked by what many have called the Great Work-from-Home Experiment. As businesses and states quickly shut down during the initial stages of the pandemic, many employers were forced to adopt remote work policies on the fly, while others adjusted operations and staffing strategies. Many of these changes will have a lasting impact on how we view the nature of work.
Gen Z drives demand for new types of work perks
As more Gen Zers enter the workforce next year, we’ll see greater demand for customizable benefits and perks. This is a generation, after all, that is used to customizing every part of their lives–from makeup tutorials to TikTok dances. If employers want to attract and retain this segment of fresh talent, they’ll have to cater to this preference for choice and customization. Employers will increasingly look at marketplaces of perks (as opposed to pre-packaged offerings) which put the choice in the hands of the employee.
–Jordan Peace, CEO at Fringe
Remote workforces will spur a shift to flexible benefits
The vastly accelerated and broadened use of virtual care spurred by the pandemic will become permanent. Although it started with one-off check-ins or virtual mental health coaching, 2021 will see the continued rise in the use and efficacy of virtual care services once thought to be in-person only such as maternity, postpartum, pediatric, and even tutoring. Employers are taking notice of this shift with 32% indicating that expanded virtual health services are a top priority, and this number will quickly rise as employers look to offer flexible and convenient benefits in support of employees and to drive productivity.
–Sarahjane Sacchetti, CEO, Cleo
Retraining, reskilling, redeployment
It is true that economic downturns, particularly deep and sustained ones, do prompt layoffs as a response to precipitous losses in revenue. And as this trend continues into 2021, properly executed outplacement can be a lifeline for redundant workers, and an important pillar in an organization’s employer brand. Outplacement support (for employee lay-offs) is only one option in an array of workforce management strategies. Other cost-effective options—such as retraining, reskilling and redeployment—will continue to grow in popularity next year. Employers will be more committed to building a workforce of the future by helping employees acquire new skills so the companies can absorb downturns and market shifts without having to resort to the costly fire-and-hire cycle.
–Michelle Anthony, chief revenue officer at LHH
Remote work will make finding talent exponentially more difficult
As more and more companies make the transition to permanent remote or hybrid models, competition for talent will become increasingly difficult. When Facebook and Twitter announced earlier this year that employees no longer needed to come into the office, this not only gave current employees a chance to relocate but it also gives Facebook and Twitter the opportunity to tap into talent that is located anywhere in the world. For well-established brands, this likely means access to more talent. For everyone else, it means more competition for their traditional talent pools. Talent acquisition teams will instead need to find new ways to compete like offering remote or hybrid models themselves or extending their talent search beyond their own geographic walls and adopting a virtual recruiting strategy.
–Ed Barrientos, CEO of Brazen
Rethinking the employee value proposition
As businesses change and evolve, post-pandemic, companies will reexamine and revitalize their employee value propositions. With changing business models and economic forces, organizations will revisit their incentive compensation models and talent management strategies. Flexible work arrangements and job sharing will be part of the new normal, requiring employers to revisit time off and absence management policies.
– Betsy Woods Brooks, principal of engagement practice at Buck
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