In the upcoming years, we can likely see significant changes to how employers provide benefits for their employees. According to the survey by the International Foundation of Employee Benefit Plans (IFEBP), employee benefits are expected to change in 2022 and beyond. This includes an increase in employer-provided health insurance, retirement savings plans, and so many other things. The study also predicts that more employers will offer paid parental leave, flexible work schedules, and other family-friendly policies to attract millennial workers.
Benefits for employees are not just about salary and wages. Employee benefits serve to attract the best talents in the market and keep them engaged with a combination of financial and non-financial benefits, including flexible work arrangements and other perks. In this article, we won’t cover all of the speculations on employee benefits trends. So instead, let’s take a closer look at only some inevitable ones to see what you can expect for your business’ future benefits package! The following forecasts on employee benefits trends may define the way employers treat their staff in the future.
Flexible Work Arrangements Due to the Focus on the Gig Economy
One of the notable employee benefits trends we expect to see in 2022 is the concentration on the gig economy. The gig economy has risen, leading to an increase in numerous companies offering flexible work arrangements. As a result, employees who are not in management or highly specialized roles are increasingly able to work whenever, wherever, and how it suits them. This includes working from home during specific times, working full-time for multiple companies to get more hours, and other arrangements that give an employee more control over their schedule. In short, we will see a significant increase in work-from-home opportunities in the future, especially after what the Covid-19 have done to the world.
Companies like Uber and Lyft are slowly changing the way we work. As millennials continue to become more comfortable working in the gig economy, employers will need to offer flexible benefit packages that meet their needs, no matter how remote or unconventional they may be. Failure to do so could result in their talent pool dwindling.
Employer-provided Health Insurance Reform
Healthcare reform is expected to have many effects on the healthcare industry. Many large firms will still provide employees with access to affordable health insurance, but small and mid-sized companies may be forced to offer coverage because they do not have as many financial resources. The new legislation would require employers with at least 50 people working for them to provide health care or face a penalty. However, this could lead some smaller entities who cannot afford it to close their doors altogether if enough workers opt-out of participation in exchange for fewer hours (and therefore no longer qualifying). In brief, the healthcare cost will be projected to increase in 2022.
An Increase in Remote Work Opportunities
Technology is foreseen to have a significant impact on the workforce by 2022, including AI and robotics. There are predictions that technology will increase the number of remote work opportunities available to employees. Also, the gig economy is predicted to increase with technology, meaning more people may freelance or contract for work rather than being employed full-time at one company. One of the main benefits of this would be the ability for employees to take care of their health by working remotely while still maintaining productivity. They are also able to keep the benefits of health care coverage even if they are working remotely.
Increased Focus on Employee Financial Health
In the survey, the International Foundation of Employee Benefit Plans predicts that there will be an increased focus on employee financial health in 2022. This means that employers will offer, among other things, retirement savings plans for their employees. In addition, more employers are also providing health insurance coverage to their employees.
The main goal is for companies to promote good health and healthy habits among their staff members. As a result, they are offering paid parental leave, flexible schedules, and other family-friendly policies. This attracts millennial workers who are more concerned with balancing work and family life than previous generations were.
Mental Health Benefits Will Continue to Grow
Mental health care can sometimes be overlooked, but it is just as important as physical health. And perhaps it will become one of the employee benefits trends rising in 2022 and beyond. Over half of all companies surveyed by Aon Hewitt have increased their mental health coverage to keep up with employee demand in the past five years. Maintaining high levels of mental wellbeing helps improve work performance and reduces overall healthcare costs for employers and employees alike. Employee assistance programs can also help companies and individuals struggling with mental health issues. Aon Hewitt predicts that by 2022, employers will continue to prioritize offering mental health benefits and provide more generous coverage than they currently do for these types of services.
More International Opportunities
More employers are also looking at ways they can attract employees from different countries with the use of technology. Now, it is possible for companies to communicate through real-time messaging, where English-speaking managers can communicate with non-English-speaking workers via video chat. This enables employees to improve their language skills and overall communication abilities in a safe environment to get real-time feedback.
More Emphasis on Lifestyle and Work-Life Balance
This is already a top-of-mind issue among employers, and it will be even more important in 2022. The current economy has led to an increase in job competition and uncertainty for new college grads. In the future, many companies will aim to attract talent by offering more amenities related to a balanced lifestyle outside of work. This includes things like transportation cost assistance, daycare benefits, and other perks that can be used to alleviate stress from families or individuals.
Employers are rapidly moving away from traditional benefit models, so we should look out for numerous employee benefits trends coming. These changes are expected to continue throughout 2022. By examining the trends of what benefits are getting popular, we can get a sense of where both employers and employees may be headed in 2022 and the following years.
As these changes happen over time, it is important for organizations to stay ahead of the curve by constantly researching new ways to address their employee’s needs and engage with their talents. On the employee side, you should stay up to date with how the employee benefits may be changing in the future in order not to miss out on the rightful benefits you deserve.