The 3 Biggest Trends in Employee Benefits for 2020
As the decade ticks over, it’s time to evaluate whether your employee benefits plan offers the value it should.
As generations transfer out of, and into the workforce, the demand for benefits as a form of remuneration continues to change. Not only do families look different today than they did 10 years ago, but the pursuit of health and wellness has also changed. That change combined with the racing pace of technology has caused a shift in the value of benefits.
By keeping up with this change, you can offer better compensation to your employees that will continue to draw the best talent available.
To help keep you up to date with your workforce’s desires, we’ve compiled a list of the top three trends we see changing the way we do benefits packages in 2020.
The benefits your employees are looking for in 2020
Before we get into the particulars, it needs to be said that a benefits package is not about monetary value. If that were the case, simply increasing pay should be enough. Instead, benefits are about showing employees they are valued and heard, as well as using the cooperative power of the workforce to give employees more than they can purchase by themselves.
That means by aligning your benefits package with your employee’s desires, your company can offer a benefits package that is more effective than your competitors, without necessarily paying more.
For 2020, the three main trends we see gaining steam are:
- A holistic approach
- Customization options
- Telehealth (otherwise known as virtual health)
Let’s break this down and look at each point in greater detail.
A holistic approach
If your benefits package only includes dental and pharmacy coverage, it’s time to rethink your approach. Today’s workforce takes a more holistic view of health that not only includes mental health, but more intangible aspects as well, such as work-life balance.
In fact, according to a survey from Aon, “Today's employees expect more flexible working hours (84 per cent), support to achieve work-life balance (79 per cent), a clear approach to employee mental health (78 per cent), more agile home and work options (77 per cent), a high degree of benefits personalization (56 per cent).”
This range of benefits can be difficult for employers to cover. However, close communications with your employees along with an experienced benefits consultant can help you prioritize the benefits that your employees value most. This will allow you to tailor your benefits package to your employee’s wants and needs.
We live in an age where choice is king, and that desire for a broader array of options is changing the way employees interact with their benefits package.
While in the past, employees stayed within the bounds of the benefits offered, today, they want the choice to get more – even if they have to pay for it.
According to that same study from Aon, "Employee demand for more flexibility and choice is growing, with the top five voluntary insurance benefits (fully employee-paid) offered by employers including optional life (90 per cent), optional accidental death and dismemberment (72 per cent), supplementary travel (71 per cent), critical illness (49 per cent) and retiree health (44 per cent)."
This one-stop-shop approach to benefits is becoming more popular as it gives employees a streamlined process that offers value in time and effort saved.
Technology, just as last year and probably next year, continues to drive benefits forward. While there are many new technologies threatening to change the industry, the biggest trend we see is the adoption of telehealth, otherwise known as virtual health.
Offering convenient access to a variety of services, from mental health to on-demand health advice, telehealth offers health care through a mobile app. By offering round-the-clock, available-anywhere support, telehealth continues to gain popularity in the benefits sector.
With its pace, we think it will continue to pick up steam and change how both employees and employers interact with health benefits as we move into the new decade.
Keeping your benefits package current
By focusing on trends, and getting out in front of those trends, your business can attract today’s top talent, and tomorrow’s, too. This forward-looking approach will save you from losing your best employees to businesses that anticipate employee needs, instead of reacting to employee complaints.
For more information on how to get ahead of the curve, and surprise your employees with benefits that anticipate their desires, call Bayview Financial today.