Savvy business owners understand the importance of maintaining an attractive employee benefits package. As employee benefit trends tend to change from year to year, it is vital to regroup and consider what modifications can be made to your benefits package to attract new talent. Here is a look at some of the most sought-after employee benefit trends that have already created a buzz in 2020.
Top 5 Employee Benefit Trends in 2020
A strong employee benefits package can give businesses a competitive edge and draw in top talent. As employee expectations have changed drastically over the last decade, it is more important than ever for businesses to find new and creative ways to keep their workers happy, healthy and productive. Benefits that are unique and provide real value can help businesses retain existing employees and bring in new workers who expect companies to keep up with the trends.
While there is no one-size-fits-all approach to employee benefits, companies should take the initiative to create an employee benefits package that meets the demand of modern employees. From greater work flexibility to the implantation of a health advocacy program, here is a closer look at the top employee benefit trends this year.
1. Greater Emphasis on PTO & Work Flexibility
Leave benefits have become a main topic of discussion in the last year. Paid time off (PTO) is a crucial benefit that allows employees to better balance a fulfilling work career with their personal life. When you offer your employees PTO, it shows them how much you care about their wellbeing.
Work flexibility has also been a focal point across businesses in all industries. There has been a steady rise in telecommuting among both part-time and full-time employees which has shown great promise. According to the Society for Human Resource Management, ad-hoc telecommuting was offered by 69 percent of organizations in 2019. One-quarter of organizations also allowed for full-time telecommuting. These numbers will likely increase during 2020 as more businesses permit telecommuting.
2. Retirement Benefits to Become More of a Focus
Today, just over half of all companies based in the U.S. offer some type of retirement program, such as a 401k. Only a small percentage of these employers offer a match of six percent or above with the most common match at just three percent. However, this number is likely to rise as retirement benefits become more of a focus across businesses in all industries.
When searching for a job, the majority of workers look for important benefits like retirement accounts with employer matching. To keep pace with the businesses that currently offer these benefits, it is important to look over your current benefit offerings and determine if your retirement benefits are competitive. Consider adding more retirement account options or increasing the match amount on existing accounts.
3. Improvement of Financial Wellness Tools
All employees want to maintain healthy finances, regardless of their salary. By providing employees with the financial wellness tools they need, they can learn to more effectively budget, pay down debt and save towards their future. Today, there are countless resources available to employees who need assistance with various areas of financing, such as credit cards, student loans, retirement savings and childcare.
One of the biggest employee benefit trends in 2020 is the delivery of valuable financial wellness trends. This may include services like access to financial advisors that can help employees develop a budget and make smarter money choices. Investing assistance is also a popular financial tool that can benefit many employees who wish to grow their money outside of a standard savings account.
4. Use of Proactive Health Plans
Healthcare costs continue to rise and most businesses are searching for ways to reduce insurance premiums and overall healthcare costs for their employees. In addition, many employees are relying on their employers to help them cover their healthcare needs. Proactive health plans aim to help employees stay healthy for a longer period of time which reduces the amount of major medical bills that accumulate after an employee becomes injured or ill.
Proactive healthcare occurs when both a provider and the patient take an active role in managing the patient’s health. This involves the patient practicing “self-care” activities, such as drinking plenty of water daily, exercising regularly, taking any prescribed medications and vitamins, maintaining a healthy weight, scheduling wellness exams, and similar proactive measures for good health.
5. Implementation of Health Advocacy Programs
Receiving a bill for services that you did not receive or a bill with inflated service costs can be extremely stressful for employees, especially those with ongoing medical needs. When faced with these bills, patients are forced to make phone calls to the insurance company, healthcare provider, or sometimes both to try to determine where the error was made. This can often be a long process and the results are not always satisfactory.
Employees do not always understand what medical services are covered by their insurance or where to go to find the best prices on healthcare services. This is where health advocacy programs can be useful. With health advocacy programs, employees can gain access to trained professionals who can help them better understand what treatment services are available. These professionals will also negotiate with insurance companies and healthcare providers on behalf of patients.
Learn More About Employee Benefit Trends Today
Today, many businesses are stepping away from traditional benefits and building employee benefit packages that offer a wealth of innovative benefits that draw in new talent. These benefits have been found to increase job satisfaction among workers and can help employees maintain better health and overall wealth. In turn, this can have a direct impact on employee morale and productivity in the workplace.
While the importance of building an attractive employee benefits package is important, it can also be challenging for growing businesses to implement. An experienced employee benefits consultant can guide you in the right direction as you create a benefit package that meets your needs and budget. Contact the Business Benefits Group today to get started.