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How The ‘Great Resignation’ And Other Factors Are Affecting Employee Benefits

Forbes Human Resources Council

Alan Fergusson is Global Employee Benefits Practice Leader at the Worldwide Broker Network (WBN).

The tidal wave that was the worldwide pandemic has well and truly shifted employee expectations of what they want most from employee benefit packages.

The much-reported “Great Resignation” has turned out to be more of a “Great Realization” as people chose to amend their lifestyles and incorporate work as part of more fulfilling lives.

Now the global cost-of-living crisis is keeping the pressure on employers to deliver benefits that will continue to give value, attract talent and satisfy existing employees.

What benefits are in highest demand?

Benefits centered around life insurance, disability insurance, health and retirement aren’t taking up the spotlight to the same extent they used to. They’re still important to employees, but they’re now just as focused on those benefits that have an immediate effect on the quality of their lives. Things like wellness, mental health and the associated well-being applications are now the ideal, as evidenced by the findings of the latest 2022 survey conducted by the U.K.’s Chartered Institute of Personnel and Development (CIPD).

We’re seeing a large number of providers and carriers teaming up with wellness providers to embed services in their policies. And employers are doing more to show employees what’s in there and how it can help them. The result is the means to uplift social, physical, digital, mental and financial well-being.

Another impact on the benefits landscape is that employees and their families are looking to employers to make sure they’re provided for and protected. So, a sound retirement plan that also reflects the values and culture of the company is high on the list of desirables.

How has remote and hybrid work affected benefits?

For employees working from home, there’s no cachet in benefits that are solely based at the company’s office premises.

With more job vacancies advertised as fully remote, the “work from everywhere” culture is here to stay. Employers are now looking at related benefits including a work-from-home allowance and providing equipment such as laptops, desks and chairs. Providing the right desk and chair means employers are both putting employee comfort first and helping to avoid future claims.

Access to telemedicine has reached record levels. A McKinsey study carried out in July 2021 revealed that the use of telemedicine stabilized at 38 times the level it was pre-Covid-19. It’s an incredible statistic and a clear call to employers to make sure it’s part of their benefits package if they’re to remain ahead of the curve. And if they do, they need to make sure they’re clearly showing employees how they can access these services.

More frequent dialogue between employers and employees is seeing greater personalization of benefits coming to the fore. What employees are being offered is actually what they want, and it’s more reflective of where they’re at in their careers. Flexible benefits and the platforms and means to deliver them are essential tools in the battle for talent.

What does innovation look like in this new landscape?

Sometimes innovation just sneaks up on you. As recently as five years ago, no one had as much access and interaction with their employee benefits package as they do today. Employees don't have to wait for an annual statement anymore—they can access their benefits at the click of a button.

The pandemic saw a lot of people take the time to drill right down into what was on offer. And from that increased attention and interest has emerged a focus on flexibility across things such as work trips, paid time off and the frequency and length of vacations.

Assistance in the form of menopause and fertility specialist care and treatment plans and pay-on-demand in times of employee financial hardship are relatively new on the employee benefits radar. Employers are also making inroads around employee mental health and helping employees alleviate stress.

Then there are the cost-of-living increases, globally, that we’re seeing for the first time in a long time. It’s also proving to be an area where employers can help and leverage existing benefits to encourage their employees to save money. Discounts on products and services are often available.

None of these statements around employee benefits can ignore the fact that cultures within workplaces are being formed and evolved as we talk. These stories are far from over.

Whichever way you look at it, the employee benefits landscape when seen through an employer’s lens has shifted a great deal. Then again, as an industry specializing in the well-being of people, if we can’t learn from the impact of the pandemic, the Great Realization and the cost-of-living crisis, we’re in the wrong profession. Thankfully, our sector has been robust and resilient in its response to these developments. Necessity, as the saying goes, is the mother of invention.


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