Post-pandemic employee benefits: 3 areas to watch
Here are three areas of work and employee benefits that HR professionals should be focused on.
HR experts across all industries are starting to reflect back on what they have experienced during this pandemic, while also looking forward as work continues to change. In this new world where employees are constantly on the go, it’s more important than ever before that companies offer benefits and policies that can accommodate lifestyle changes.
Related: 3 ways to attract and retain your best employees in 2022
In August of 2021, a survey of benefits professionals was conducted by Benefit Resource to better understand their priorities and plans moving forward. Given the survey and taking what we’ve learned from the past two years of the COVID-19 pandemic, there are three areas that professionals are focused on: compensation and benefits, health care utilization trends for 2022, and changes to the ways we work.
Compensation and benefits
Let’s begin by looking at compensation and benefits. The pandemic has certainly shifted people’s needs and expectations from a couple of years ago. Employers now must focus on challenging the status quo and search for creative ways to not only keep up with cost increases but also to leverage their benefits to retain employees. The key to containing costs is managing the health insurance plan. If your organization offers an HDHP paired with an HSA, it can help employees pay for their increasing out-of-pocket expenses.
Digitalization of employee benefits
Employee communication is crucial. Instead of the standard open enrollment meeting followed by a few lunch ‘n learns with the vendors, the pandemic has taught us this isn’t nearly enough. Employers and HR professionals need to expand beyond the previous communication trends. Start open enrollment season by sending a postcard with a QR code in the mail to access all digital enrollment materials.
Additional ideas for digital benefits support include:
- Email campaigns
- Digital signage within the office
- Links to digital enrollment materials
- Clickable digital enrollment guide
- Live benefits webinars with vendors
- Short mini videos (3-5 minutes)
- Recorded benefits presentations accessible throughout the year
Redefining benefits
The combination of the pandemic and the hiring environment is changing what we define as a benefit. Traditional benefits packages have been designed around the thought that if the worst should happen, benefits have you covered. To employees, this is helpful but not an everyday benefit that causes benefits to be forgotten until you need them. Ultimately, this leads to a lack of knowledge about benefits and what the company provides for employees. Employees need to be more involved with their benefits, beyond open enrollment. Employers need to redefine what benefits are. If someone asks an employee why they stay at a company, their answer probably won’t be because of the life insurance or long-term disability; it’s for some other reason.
Corporate culture or a day off for pet bereavement are just a few benefits that employees take into consideration when making annual open enrollment decisions. Employers need to restructure personalization and passions into their employee benefits package. Then, the next time the employee is asked why they stay with the company, they can share about losing their dog a few months ago and how it meant so much to them that their company gave them the day off. Restructuring benefits to include the “little things” allows employees to enjoy their work environment and have a meaningful appreciation for their benefits.
Health care utilization
Pre-pandemic employers were focused on preventive care in order to help employees identify early chronic disease, potential risk factors, or other health-related challenges. Two years after the pandemic, deferred care may be a cause for concern as people have elected to avoid health care facilities due to the risk of infection or close contact with others in a public space. Employers are now faced with the potential of delayed care due to the pandemic. This can result in at-risk employees and more expensive claims down the road.
To better help employees get the most of out their health care and stay healthy:
- Remind employees to take care of themselves and encourage them to regularly engage with a primary care physician. A small problem now could result in a significant health condition if left untreated.
- Encourage a virtual appointment. Virtual medicine for preventative care has become widely accepted and more popular during the past two years and can be essential for employers in keeping their workforce healthy.
- Pick out a couple of times throughout the year to communicate benefits rather than just around Open Enrollment.
- Look at the data to drive employees in the right direction regarding health care and benefits.
Potential increases on the horizon
In 2020, COVID caught health care systems by surprise. In 2021, they had to consider repricing their procedures because a majority of the elective surgeries and minor procedures weren’t coming through the door anymore. In 2022, it’s anticipated that the catastrophic claims will make up a more significant percentage and at even higher costs. Certain events are unexpected and unavoidable, like getting hit by a bus or developing late-stage cancer. The health care system may be beginning to price those events to make up for the more minor procedures that are no longer streaming in at the same consistency. This change can result in higher renewals because of the cost of the catastrophic conditions. Employers should continue to plan ahead for unforeseen changes regarding health care utilization.
The way we work
The way we work has likely changed forever. Employers have been forced to change assumptions and practices in a hurry. Things such as location used to be a driving factor for employment and opportunity. There has now become a decreased focus on flexibility as the Gartner Survey found that 59% of workers indicated they would consider a new position that allows them to work from their chosen location. Additionally, 20-25% of the workforce could work remotely 3-5 days per week without losing effectiveness.
Employers also need to keep in mind that not all employees can work remotely. While the pandemic has undoubtedly made the work-life easier for most remote employees, don’t lose sight of the employees whose jobs cannot be done remotely. Pay special attention to those employees and look for ways to make their lives easier, too. This could include flexibility with their start time or end time or include different benefits that even the playing field for them when compared with remote workers. Along with changes in location preference and workplace flexibility, job seekers are looking for a diverse workforce. The increase in DEI (diversity, equity, and inclusion) is becoming a more prominent factor for candidates evaluating companies and job offers.
While the pandemic has certainly shifted the way we work, a flexible work environment and robust benefits are values that seem to stand the test of time. Employers should keep the lines of communication open with employees as we begin to shift to the post-pandemic ways of life. Most importantly, don’t forget to take what you’ve learned about being successful after the pandemic and use these steps to move forward in this complex work landscape.
Becky Seefeldt is vice president of strategy at Benefit Resource LLC (BRI), a leading provider of dedicated pre-tax account administration and COBRA services nationwide.
Read more: