COVID-19 abruptly changed various aspects of the workforces in our lives, so it’s not a surprise for us to see several shifts in the employee benefit trends. Employee benefits refer to the various perks and compensation that an employer provides to their employees in addition to their regular salary or wages. These benefits are meant to attract, retain, and motivate employees. Studies have shown that an employee who feels motivated and appreciated by their employer is more likely to be productive and stay in the long run for the organization, hence making employee benefits an important aspect.
Offering attractive employee benefits is one of the best ways to attract top talent and retain your current employees. Employees who are satisfied with their benefits package are more likely to be happy with their job overall. This can lead to increased productivity, better job performance, and a positive work culture. Employee benefits such as health insurance, wellness programs, and mental health support can improve the physical and mental well-being of employees. Employee benefits can also lead to cost savings for both the employee and the employer.
Based on current trends and predictions, here are the top 10 employee benefits trends for 2023:
Telemedicine/ Telehealth: Telemedicine is a substantial change in delivering the healthcare service that allows patients to receive medical consultations and treatment remotely, through video conferencing, messaging, and other digital communication tools. Patients can consult with medical professionals from the comfort of their own home or office, rather than having to visit a clinic or hospital in person. Providing telehealth services can help employees get the care they need when they need it, which can lead to improved health outcomes and increased employee satisfaction. It helps reduce employee absenteeism and presenteeism by allowing employees to receive medical care without taking time off from work. This can lead to increased productivity and reduced healthcare costs for employers.
Schedule Flexibility or Remote work: We all know Flexible working schedules is a game changer for the employees, not a new concept but has been under limelight since pandemic. Offering a range of benefits that can positively impact their work-life balance, productivity, and overall well-being. Allowing employees to work when they are most productive and alert, flexible working hours can lead to increased productivity. Employees can schedule their work around their most productive times of the day, and they can take breaks as needed to refresh their minds and maintain focus.
Behavioral and Mental health: Mental health will always be a top priority as the rising inflation levels adding up financial risks to the workplace. There are many reasons why an employer should invest in the employee’s mental health. Wellness coaching, gym memberships, mental workshops are some efforts that an employer can provide. Indeed, employers are increasingly recognizing the importance of mental healthcare and are offering mental health benefits to their employees. This not only helps an employee but also benefits the employers, as employees with good mental health are more likely to be engaged and productive in their work.
Diversity, equity, and inclusion (DEI): This is a conceptual framework that promotes fair treatment and full participation of all employees in the workplace, including the one who have been under-represented and are discriminated against because of their background, identity, or disability. Due to the complexity of these issues in society, DEI is not simple to achieve. Employers can promote diversity and inclusion by actively recruiting and hiring employees from a variety of backgrounds, and by creating an inclusive workplace culture that celebrates differences and encourages open communication.
Generous leave policy / paid time offs: A generous leave policy is a great way for employers to show their commitment to their employees’ well-being and work-life balance. One way to create a generous leave policy is to offer paid time off (PTO) for employees to use for vacation, sick time, personal days, or other reasons. PTO can be accrued over time or provided upfront. Parental leaves can also support employees to balance work and family responsibilities.
Increased Caregiving options: This is the most essential need for working parents who must juggle between work and family responsibilities. Providing increased caregiving options for employees is an important way for employers to support their employees and help them balance their work and caregiving responsibilities. Employers can provide paid caregiving leaves, flexible schedules, local caregiving services or on-site childcares to make it easy for the employees.
Home Office Reimbursement (WFH Stipends): What if you are told to pay for the work at home expenses from your pockets, would you agree? Doing this would cause the employee’s salary to fall even below the minimum wage. The fair labor standard act covers this law and as a result home office reimbursements or remote stipend have risen in popularity even among companies that don’t have to offer it. This is particularly true in states like California where, under state labor laws, employers must reimburse employees for any expenses necessary to fulfill their job duties.
Financial wellness benefits: Financial wellness benefits are a great way for employers to support their employees’ financial health and well-being. Employers can offer financial education programs, workshops, or seminars to help employees develop financial literacy skills and better understand personal finance topics, such as budgeting, saving, investing, and retirement planning. Another facility an Employer can offer is flexible spending accounts (FSAs) to employees, which allow them to save pre-tax dollars to pay for eligible healthcare or dependent care expenses.
Work-life balance benefits: Overall well-being of an employee and creating a healthy workplace culture has become a necessity for the companies. In order to achieve this, providing work life benefits to employees is a must. Employee assistance programs (EAPs) is a way through which employers can offer counseling and support services to employees who are experiencing personal or work-related problems. Time management training can also provide great help to employees to learn how to manage their time more effectively and balance their work and personal responsibilities.
Employee Recognition: When an employee puts his heart and soul into his work, he expects appreciation from his employer. When employees feel valued, they’re more engaged, motivated, and likely to go the extra mile for their company. Organizations with formal recognition programs have 31% less voluntary turnover than organizations that don’t have any program at all. This trend enables the employees to ask for benefits such as awards and certificates, monetary rewards, and career development opportunities for their efforts towards the organization.
Employers must consider the needs of their employees by providing them with the perfect benefit. After The Great Resignation climate, the market was left with 10.1 million job openings and employers were making every effort to find the right employee benefit to retain top talent. This shows how important it is to have an appealing employee benefits package. 2023 has made employers adapt to the economic and social pressures, implementing new methods while managing costs and providing value to the employees at the same time.
What employee benefit attracts top performers to your organization?
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