How benefits advisors impact workplace wellbeing
Brokers and advisors can help employers build holistic benefit packages that not only attract top talent, but also foster a culture of wellbeing and security within the organization.
Lincoln Financial Group found that 86% of employees surveyed saw insurance benefits other than medical insurance as a “must have” in an employer’s offerings, underscoring a significant shift in employee priorities.
The changing landscape of employee benefits
Demand for non-medical insurance benefits, such as disability insurance, life insurance and critical illness coverage, is on the rise. The shift is caused by several key drivers, including the current economic climate and the impact of COVID-19. In an inflationary post-pandemic world, 82% of employees surveyed said they were seeking financial protection against expenses or lost income in case of an unexpected event, according to Lincoln’s research. The current economic climate has also led 83% of workers surveyed to reevaluate at least one aspect of their life, finances, work or retirement. An even higher proportion of Gen Z (91%) and millennial (89%) workers said they were reevaluating their finances and goals, which is especially notable as millennials make up more than a third of U.S. workers
Additionally, and unsurprisingly, 92% of Gen Z and 88% of millennials surveyed are interested in receiving financial aid from their employers, as 58% of surveyed employees hold credit card debt and, on average, workers in their 30s have the highest number of competing financial priorities. Knowing this, there are several benefit options employers can choose from to help lessen the blow of an unforeseen and costly life event their employees may face.
By understanding the sentiments of today’s workforce, employers and their advisors can craft a benefits package that protects employees in unforeseen and costly life events.
Offer diverse benefits packages to attract and retain talent
Offering financial wellness benefits may lead to an increase in employee satisfaction, boosting employer loyalty, according to 56% of employees surveyed. Research shows that 80% of employees said being offered holistic group benefits – including life insurance – positively impacts their loyalty to their employer.
While financial wellness benefits gain popularity, having a robust benefit offering is important, as dental and vision benefits remain the second and third highest ranked benefit offerings, respectively, just behind medical insurance.
Small businesses are at the forefront of adapting to new benefits trends, with more than a quarter (28%) of small business owners surveyed offering better benefits to attract and retain talent following the pandemic.
Examples of non-medical insurance solutions employers can provide to be an employer of choice are:
- Disability insurance provides paycheck protection. If an employee is unable to work due to an illness or injury, they won’t lose all their income.
- Accident insurance helps pay for expenses that are incurred as the result of an accident including emergency room, x-rays and physical therapy
- Critical illness insurance provides cash to cover day-to-day expenses – such as mortgage payments, childcare, food and more – while someone is recovering from an illness.
- Life insurance helps plan for the future by protecting loved ones.
Advising employers to meet evolving employee demands
Choosing the right benefits packages and educating their employees can be a complicated process for employers. To help employers get new hires through the door – and keep them there – it’s important to communicate how benefits offered at the workplace can protect an employee’s finances today and help secure their tomorrow. Benefits brokers and advisors help fill the knowledge gap and are an important resource for both parties, especially during open enrollment periods.
In an era of digital communications, administering on-demand digital resources, virtual documents and digital tools showcase how employees can get the most from their benefits. Providing digital guides also reduces frustration, empowers workers to confidently make informed decisions, and further establishes trust with their employers. Being a resource for both an employer and their employees can boost benefits enrollment by over 54% if workers can better understand their benefit options – and that number increases for Gen Z (58%) and millennials (62%).
In collaboration with insurers, brokers and advisors can help employers build holistic benefit packages that not only attract top talent, but also foster a culture of wellbeing and security within the organization.
Heather Deichler is senior vice president of Product and Underwriting for Lincoln Financial Group Protection business.