The focus is on mental wellness, flexibility and inclusivity
A couple of months ago, I did a blog on what people tell us they want from their benefits plans, based on survey results and what I’m hearing in the field from clients. Since then, a lot of people have asked me what that means in terms of changes taking place the world of benefits.
So, I thought it would also be interesting to look at the trends that we’ve seen in the last few years as well as some that may just be starting to take shape.
Employee benefits plans do seem to be evolving rather quickly, and I think there are a number of factors that have come into play.
One of the biggest drivers of change was the massive shake-up of all things employment-related as a result of the COVID pandemic. Status quo and business-as-usual were out the window. I think we all had a feeling that nothing would ever be quite the same again.
Other pressures on employment relate to the many changes taking place in the labour market – things such as generational change, evolving attitudes toward the employment relationship, the influx of new Canadians and, of course, the ups and downs in our economy.
I think the overall trend, if I can generalize very broadly, is that plan members now tend to be better informed about their benefits – and more interested. Rather than sitting back and taking benefits for granted, they are asking, “What can my benefits do for me?”
The trends I see reflect a focus on overall well-being, the healthy workplace, flexibility, inclusivity – and perhaps a little innovation. Here, in no particular order, are 10 trends that seem to dominate a lot of our benefits conversations.
Mental health support: The biggest change in dealing with issues of mental wellness in the workplace, I think, is the growing acceptance of the fact that mental wellness issues can affect anyone and that there should be no stigma attached to seeking help.
Things such as stress, burn-out, anxiety, and depression, which were not so long ago considered to be personal problems, are now front and centre in the efforts to build the “well workplace,” and are addressed by a range of possible benefits programs.
Employers are now offering comprehensive mental health benefits, including employee assistance plans (EAPs), live counseling, on-line or video counseling, therapy apps, and extended coverage for psychological consultation.
Health spending accounts: A lot of plan sponsors are offering health spending accounts that give plan members the flexibility to use their spending account on whatever benefits they prefer – be it spending more on glasses, adding massage therapy or whatever they prefer. I think this idea is particularly attractive to younger workers, who may want to have more control over how they use their benefits. This could make it attractive to employers who see their benefits as key to their recruitment and retention strategies.
Wellness programs: We’ve often talked about wellness programs — holistic wellness initiatives, gym memberships, virtual fitness classes, nutrition coaching, preventive screenings, and so on. One thing that I’ve noticed over the years is that wellness programs of various kinds, pretty much regardless of their specific features, tend to have their biggest impact in building a sense of community in the workplace – and that feeling of buy-in is one of the main goals of the well workplace.
Paramedical and extended health coverage: It’s one of the biggest things people are asking for, and many plan sponsors are doing their best to offer broader coverage for services like physiotherapy, massage therapy, acupuncture, and virtual healthcare – often with higher annual limits to meet rising healthcare demands.
Enhanced retirement savings plans: Improvements to RRSP matching, group RRSPs, and pension plans are just a part of it. Many plan sponsors are also putting a focus on financial education and auto-enrollment to address financial stability and retirement security.
Gig and contingent worker benefits: As the gig economy grows, some employers are extending portable benefits like health coverage and retirement options to part-time, contract, and freelance workers.
Parental and family leave enhancements: This is another possible benefit that is very high on the wish list for many employees with complex family responsibilities. Beyond statutory requirements, plan sponsors are offering topped-up maternity and paternity leave, and even things like adoption assistance.
Technology integration: We’re starting to see more and more digital platforms for benefits management, AI-driven personalization, and apps for claims processing. On one level, this makes the claims process more user-friendly for plan members, but it also makes managing the system – administering, screening, planning, reporting – easier and more responsive for the plan sponsor.
Financial wellness tools: Providing assistance in building financial wellness can be an important part of the well workplace. Programs can include financial literacy courses as well as things like debt counseling, budgeting assistance and financial planning.
Sustainability-focused benefits: Many workplaces look for eco-friendly perks like green commuting subsidies (such as for electric vehicles or public transit), carbon offset programs, and sustainable investment options in retirement plans.
I think it’s fair to say that most plan members are more engaged with their benefits than they were in the past. But I think that’s only a part of the story. Plan sponsors are also much more attentive to the importance of the benefits they offer and are much more demanding in the results they expect from their plans. Benefits are now a key factor in defining the employment relationship and plan sponsors want to see tangible results in terms of recruitment, retention, morale, buy-in and productivity.
Well… another year seems to have come to a rather snowy end – at least in my part of the world. I hope you will have a chance to spend time with family and friends over the coming holiday and, from all of us here, I wish you peace, joy and all the very best this festive season.
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I really appreciate comments, ideas, suggestions or just observations about the blog or any other topics in benefits management. I always look forward to hearing from readers. If there’s anything you want to share, please email me at bill@penmorebenefits.com.
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