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Jan 3, 2022
Brenda R. Smyth, Supervisor of Content Creation
The amount of money employers spend on employee benefits continues to rise, but COVID-19-fueled shifts are taking place in the benefits employees and employers value most … and in the attention employees are paying to what’s included. In general, it’s back to the basics — the “old school” or “staple” benefits that provide financial support and care — according to thehartford.com and a 2021 Future of Benefits Study. After all, how important is a nap room or a concierge service that picks up your dry cleaning now that 50 percent of the workforce is working remotely?
At its core, a robust benefits package helps support workers and keep them healthy and productive. Secondarily, it shows workers an organization is interested in their overall health — helping attract and retain talent. Up until recently, organizations were getting extreme with the perks for this second reason — to appeal to and lure workers (particularly younger workers) who saw insurance, retirement programs and paid leave as “a given.”
The pandemic caused employees to revisit those “givens.” “Am I covered?” “Can I take leave to cover childcare?” “I wish I were saving more so I felt financially secure.”
Those “staple” benefits workers have previously come to expect — maybe even, taken for granted — include various kinds of insurance, retirement benefits, paid leave, flexible working, learning & development and profit sharing. The “extras” encompass things like fitness incentives, childcare, student loan repayment, pet insurance, onsite gyms, and yes, nap rooms and snacks.
Of course, the costs have been gradually increasing as well. Today, a the U.S. Bureau of Labor Statistics September 2021 report, puts the workplace benefits price tag at 31% of an employee’s total compensation or $12.06 per hour for civilian workers and 29.4% or $10.76 per hour for private industry. SHRM.org reports the increase in health care spending alone from 2019 to 2021 at $197 per employee, with the projected cost of $15,500 per employee, with large employers covering about 70 percent of those costs and employees bearing the other 30 percent.
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The pandemic has changed how we work and live. It’s changed our focus.
More workers are at home, more have issues with childcare or care for elderly parents and need job flexibility. There’s more absenteeism and declining mental health, according to hbr.org. The pandemic also spotlighted the vulnerability of our finances and savings. Employee benefits are shifting because of all these new concerns.
What are your employees’ benefit expectations? Certainly, the pandemic has made many workers more aware of their benefits packages. It’s also caused certain components to rise in importance … and others to fall by the wayside. Keep your finger on the pulse of employee expectations.
By supporting employees’ evolving needs and paying attention to what’s capturing their attention, you can continue to keep them healthy, productive and loyal. Then, never assume employees are aware of what’s available to them. Promote your offerings.
Related article: Is Your Employee Benefits Package Working as an Incentive?
Brenda R. Smyth
Supervisor of Content Creation
Brenda Smyth is supervisor of content creation at SkillPath. Drawing from 20-plus years of business and management experience, her writings have appeared on Forbes.com, Entrepreneur.com and Training Industry Magazine.
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