Reassessing employee benefits: 3 key trends
As employee needs evolve, employers need to have a well-thought-out long-term strategy to meet each team member’s unique needs.
Across industries, worker shortages continue to persist, in a much-discussed trend some are calling “The Great Resignation” and others more euphemistically label “The Great Reassessment.” Regardless of what you call it, there’s no denying that we’re in the midst of a major re-evaluation of work/life balance and personal priorities. In a tight labor market, a benefits package that is truly tailored to the needs of employees can provide a competitive edge in retention and recruitment.
Related: Turning the Great Resignation into the Great Retention
As employee needs evolve, health care costs rise and the pandemic continues to reshape how we work, employers need to have a well-thought-out long-term benefits strategy that can meet each team member’s unique needs while keeping program costs in check. We’re observing three key trends that are worth keeping in mind when assessing benefits programs.
1. Engagement and education
Benefits packages represent a significant investment, more than 30% of an employee’s total compensation, according to the U.S. Bureau of Labor Statistics. This is precisely why it’s increasingly important to ensure that employees have a say in what they’d like in their benefits package. A straightforward way to take the pulse on employee engagement is by circulating an anonymous survey that collects honest feedback from your employees. Understanding what benefits are important to them and understanding their overall impression of the company benefits package is invaluable. If getting employees to respond to a survey proves challenging, incentives like gift cards can be helpful.
Engagement can’t be discussed without also addressing education. Employee benefits are a year-round service, so it’s critical to provide employee education throughout the year — not just during renewal — so they can understand all the great offerings available to them and easily access benefits when needed. That starts with a comprehensive explanation of benefits through a variety of channels, including virtual information sessions and digital communications, and continues with streamlined access to individual plan information. Partnering with benefits technology vendors to offer employees a central hub of all benefits information – prescriptions, spending and more — is quickly becoming commonplace.
2. Price transparency
The Transparency in Coverage rule released by HHS went into effect in January. Being implemented in phases, this new legislation is designed to help consumers find the most cost-effective care, with enforcement for plans and issuers of individual/group insurance beginning July 2022.
Among other requirements, health care providers will need to publish prices for common services, insurance cards will need to list deductibles and out-of-pocket maximums, and employers will need to provide an advanced explanation of benefits and take responsibility for surprise out-of-network billing. These changes are significant but necessary, so identifying the right solution to help members easily utilize their exact plan benefits and shop for in-network services in advance of scheduling care is crucial.
3. Preventative care
As we continue to navigate the effects of COVID-19 and experience a rebounding demand for non-emergency care, tools to manage the physical and mental health of employees proactively and holistically remain a key priority for employers. Successful organizations must look at an employee’s whole health to maximize the investment in benefits and build a strong and productive company culture.
To identify and address emerging population risks, some organizations are pairing wearable devices or biometric screenings with nursing services to help employees collect and act on personal health data. Easy access to care, such as convenient telemedicine services, is also important to fill in gaps and provide prompt attention. As the demand for mental health care continues to rise, organizations are including these services as part of their benefits plans in support of employees’ overall well-being.
As always, staying ahead of the latest employee benefits trends helps ensure that employees are equipped with the tools and offerings to make the most of their benefits, while feeling fully supported and productive.
Mitch Heckert is vice president of employee benefits at Graham Company.
Read more: