Developments in Employee Benefits for 2023 and Beyond

The workplace of 2023 is set to look very different than the workplace of today. With technology evolving and changing, so do the ways companies provide benefits for their employees. With the world of work increasingly becoming digital, companies can now offer their employees a wide range of benefits beyond traditional offerings.

FREMONT, CA: The twenty-first century has been marked by opportunity and anxiety for many employees. Numerous workers left their employers for better opportunities elsewhere during the Great Resignation. At the same time, rising living expenses, particularly in the healthcare industry, make it difficult for employees to hover over their work and family responsibilities. The wish to work from home, sparked by the pandemic, stays a high priority for many employees due to its role in promoting their overall well-being amidst all this turmoil.

Employers must perform a balancing act. They wish to attract and retain top talent by keeping up with trends in employee benefits. An HR Survey revealed that, compared to the year preceding the COVID-19 pandemic, organizations had increased their usefulness by an average of 22 percent. Inflation necessitates that businesses carefully evaluate and invest their benefit dollars and be inventive in meeting employee requirements.

Employers should acquaint themselves with employee benefits industry trends to inform decision-making as we enter the new year. It goes a long way towards retaining happier, healthier, more productive, and more loyal employees when employers review and react to arising developments in employee benefits.

Improving the Affordability of Healthcare

Among the trends in employee benefits, health benefits that reduce the cost of healthcare have become standard. It is a straightforward idea. A healthy workforce is the footing of productivity, creativity, and positive work culture. Yet, the rising cost of healthcare and difficulty finding time to receive treatment during a relentless, demanding work schedule may prevent workers from obtaining care when required. The deferral of care today will increase claims in the future. And it goes beyond simply treating a condition. Access to preventative care is likewise essential. A company that actively works to make health care more affordable and accessible demonstrates its concern for the well-being of its employees. There is another factor to consider. Employers who do not provide health insurance constitute a minority. Seventy-two percent of companies offer health insurance, according to the Pulse of HR Survey.

There are many strategies that employers can employ to reduce the cost of healthcare. Providing employee health benefit accounts, a robust healthcare plan, and virtual healthcare can maximize opportunities for employees to save on healthcare expenses. Health benefit accounts also help employees save money by lowering their tax liability and allowing them to manage their healthcare costs now and in the future.

Mental Health and Well-Being

Providing benefits that promote enhanced mental health and well-being is associated with lowering the cost of healthcare. The relationship between mental and physical well-being in the workplace is inextricable. According to the CDC, melancholy increases the risk for various physical health issues, particularly chronic conditions such as diabetes, heart disease, and stroke. The CDC also notes that chronic conditions can increase the likelihood of mental illness. It becomes a feedback loop with dire consequences for those trapped within it.

Employee mental health benefits were trending ahead even before the pandemic. Over 1,000 employees were surveyed to see how the pandemic affected their mental health. Fifty-one percent of respondents indicated that their mental health had deteriorated during the pandemic. Approximately one-third of respondents indicated they could not attain their typical level of productivity due to their mental health. In the protracted aftermath of the pandemic, recruitment, retention, and productivity will likely favor employers who offer mental health benefits.

Providing services encouraging healthful behaviors, such as good sleep hygiene, regular physical activity, smoking cessation, and addiction treatment, is a current trend in employee benefits. These benefits can significantly enhance employees' mental health and enable them to live a calmer, more fulfilling life. When employees are emotionally, socially, and financially fit, they will be more engaged and contribute to an enthusiastic, positive workplace that excels in creativity, problem-solving, and a can-do attitude. Employee assistance programs (EAPs), biometrics education programs, and behavioral health education programs, along with suicide awareness training for managers, are all helpful support resources.

It is essential to note that mental health benefits are significant to Gen Z employees. According to research among Gen Z, a greater proportion cited mental health benefits as the top benefit that would keep them with a company for a long time.