How the pandemic has refocused benefits strategies

As we focus on benefit strategies in a post-pandemic world while still recovering from the economic fallout, employers and their benefits brokers have an opportunity to bolster workers’ overall sense of security, stability and wellbeing.

 

The COVID-19 pandemic has affected virtually every aspect of our lives. While the most immediate impact initially involved quarantine and an expansion of remote work, an ongoing and often overlooked consequence has been the negative impact on employees’ sense of security and wellbeing. Many businesses quickly faced major revenue shortfalls and responded with cost-cutting measures, including layoffs and furloughs. Consequently, many Americans lost their sense of security regarding their jobs, economic standing, and overall health.

As we focus on benefit strategies in a post-pandemic world while still recovering from the economic fallout of the past few years, employers and their benefits brokers have an opportunity to bolster workers’ overall sense of security, stability and wellbeing. To attract and retain employees (most of whom are struggling to balance competing demands), brokers and employers must be more creative with their benefit strategies. New offerings will increasingly include remote work options, flexible schedules, wellbeing programs, and other types of work-life management support.

What do employees look like across age groups in a post-pandemic world?

The U.S. workforce is comprised of four main age groups, each of whom have survived different challenges. According to Alight Solutions’ 2021 Employee Well-Being Mindset Study, the pandemic caused all generational groups to shift gears in relation to work and personal goals, including which employment benefits are most valuable.

Baby boomers, born between 1946–1964, have traditionally valued salary and dependably robust health insurance and retirement plans. While many opted for retirement during the pandemic, those remaining in the workforce now prioritize staying within budget, growing retirement income and wealth, remaining healthy through regular screenings and managing health conditions, and balancing work and personal commitments.

Gen Xers, born between 1965–1980, have traditionally valued salary, 401(k), job security and advancement, and work-life balance. Because this group is especially burdened by the competing responsibilities of midlife, post-pandemic concerns include caring for children and aging parents, decreased retirement contributions, higher financial stress and the need for increased emergency savings.

Millennials, born between 1981–1996, have traditionally valued benefit choice and flexibility, ability to work remotely, and work-life balance. Post-pandemic concerns, however, focus strongly on finances and needing to save while also paying off debt. They also value well-being benefits more than older generations and are 3 to 5 times more likely to use these types of programs than their elders.

Gen Z, born between 1997–2012, is the most flexible and tech-savvy generation. They typically value technology and are adept at utilizing newer benefits such as digital health tools, virtual benefits services, and remote work. But having experienced financial and career-related disruptions due to the pandemic, post-pandemic concerns involve mental health support, gaining additional job skills, advancing their career positions, and staying within budget. 

How do employers adapt to such a variety of personalities and priorities?

Across generations, the pandemic made people feel unsettled, unsafe, and often, physically or mentally unwell. All age groups have expressed the desire for more employer support for workers in certain areas of their personal well-being. These include: 

While traditional insurance coverage provides some protection from medical-related financial struggles, the workforce is demanding more. Studies show that employees are thinking about their current challenges and reviewing options to improve their overall well-being. For example:

Employers who find creative ways of providing access to tools that support these concerns may achieve better work results from their employees. Further, employers must provide easy-to-understand benefits explanations, along with publishing regular updates, “tips and tricks” guidance, and more. When employees do not fully understand their benefits package, they’re unlikely to fully utilize it. This can affect employee productivity and waste employers’ money on benefit plans that do not return enough value.

What do these trends mean for brokers and TPAs?

In the past, employers could provide traditional group insurance, start a 401(k), and basically be done. With the rising demand for both expanded benefits and more creative options, businesses need help. This is where benefits advisors and third-party administrators (TPAs) can provide immense value by helping employers carefully select plans and develop creative benefit programs that will appeal to the multi-generational, post-pandemic workforce. They can help manage the programs and participant communications to alleviate employer workload.

Related: The must-have benefits as we emerge from COVID-19

If brokers and TPAs aren’t already doing so, they need to consider flexible benefit options such as: 

Moving forward

The COVID-19 pandemic has changed the way we live and work. This shift has significantly changed employee wellbeing priorities to focus more on security, mental health, relationships, and overall wellness. In response, benefits advisors and tje employers they work with must become more patient and mindful of the needs of employees, while continuing to determine how to successfully operate businesses in an altered world. Benefits brokers and TPAs can lean into this paradigm shift by recommending options that answer employees’ calls for security, flexibility, more robust benefits, and better communication. Carefully considering these options to craft a benefits strategy that helps employees regain a sense of security and wellbeing is not just smart business, it’s the right thing to do. 

Bo Armstrong is a national conference speaker and author of numerous white papers and articles on the health care benefits industry. As DataPath’s Chief Marketing Officer, Bo focuses on identifying emerging market trends within the benefits industry and advocating for customers and their needs within DataPath.

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