Trends to Watch for Employee Benefits in 2022

Over the past two years, work has changed. The pandemic, and other economic conditions, have altered the dynamic between employers and employees.

Last October, an estimated 3% of the US workforce resigned. That trend will continue into 2022.

So what does this mean for benefits and compensation?

The conversation is essential for companies because retaining talent is more complicated. Employees are lured away to other firms or leaving to start their own business. Prioritizing what employees want from an employer will make a difference-maker in which organizations emerge in the competitive talent landscape.

Companies will need to follow the benefits trends to meet employer demands. For example, flexibility is a frequent request from employees, which will change how employers manage benefits enrollments.

Infertility care is an important offering to consider. And mental health services continue to top the list as employees manage difficult circumstances in their personal lives.

And with these changes comes an increased reliance on technology for enrollment deployment.

What employees want in 2022

Remote work is here to stay. While the hybrid work model may seem to benefit employees, it can serve as a powerful trust-building tool between the organization and its workforce.

Employers will need to be prepared to manage and support employees no matter where they live. If an organization has not developed a policy around hybrid work, it needs to happen soon as employees will search for firms that offer flexibility.

The emotional and financial cost of infertility is high for employees. As a result, medium and large firms are offering better coverage to help their workforce pay for and manage this difficult time in their lives. For example, research for Mercer shows a dramatic increase in companies covering treatment such as egg freezing.

The number of large firms (more than 20,000 employees) not offering coverage for infertility has remained the same at 23%. In comparison, companies with 500 employees or more have seen a decrease in the number not offering coverage, from 40% to 39%.

As the topic is more normalized in our society, people will be looking for support from their employer to cover costs.

Stress increased over the past two years, and it’s up to many employers to support mental health. According to SHRM, the costs of depression are high for organizations-between $17-$44 million in lost productivity.

Employers will need to look at additional means of support for employees to manage their mental health and be more effective.

The technology you’ll be using (and offering) next year

Benefits are changing, and so is the technology used to support employees.

As the workforce becomes more remote, traditional in-person benefit counseling will be less common. Instead, employers will leverage decision-making technology to help guide employees through their enrollment. For example, smart tools can prompt questions based on employees’ lifestyles and families to help them choose the right coverage.

Telemedicine is common with most carriers, but utilization will increase as more people move to rural locations or areas with limited access to healthcare.

Having the right benefits administration and HR software will be critical for employers as they provide benefits to employees and manage a remote workforce.

Change is Constant

One thing we can rely on is constant change. The next few years will see more shifts in the way we work. To be prepared, it’s best to have a partner you can rely on to deliver sound advice and help you make the right decisions for your company.

Reach out to our team and find out how we can be your partner as you navigate the shifting world of benefits in your organization.