As the new year rapidly approaches, employers are grappling with increasing health care expenses, scarcity of qualified candidates, inflation, and recession fears. Despite these challenges, it is incumbent on businesses to balance the needs of the business with those of current and future employees in their benefits package.

Talent shortages and inflation woes

Mineral's 2023 State of HR Report found that the talent shortage was the #2 trend business leaders were worried about, with 68% of leaders worrying it will negatively affect their business. Benefits play an important role in attracting and retaining employees. More employers are considering ways to provide benefits to part-time workers, like offering individual coverage health reimbursement arrangements (ICHRAs).

Inflation is a huge consideration for both employees and employers, and an opportunity for financial wellness benefits to thrive. Employers who offer retirement plans likely have a huge resource already available and built into their plan to provide financial education and planning support. Employees are vocal about wanting flexible work options, but even those businesses that cannot offer flexible work can make their in-office employees feel appreciated by providing commuter benefits as attractive incentives.

Small employers generally don't entertain a self-funded arrangement for health insurance due to the risk involved; however, level-funded plans are an alternative to traditional fully insured plans. Level-funded plans are great options for small and mid-size employers to reduce costs without sacrificing quality benefits, and help to keep employee contributions or deductibles low.

Health and wellness

Fortunately, employers have caught on to the importance of providing health and wellness benefits and its connection to employee retention. According to Mineral's 2023 State of HR Report, "improving health and wellness benefits" was the #2 improvement employers are planning to increase employee retention over the next 12 months. The shape of those benefits, however, can prove challenging. News sources and social media are contributing to the hype around the trending glucagon-like peptide 1 antagonist (GLP-1) medications (i.e., Ozempic and Wegovy) for weight loss. Employers are in a precarious position on whether to cover the high cost of GLP-1 drugs, and how.