In June 2022, NFP published the US Benefits Trend Report. They found that “…a growing war for talent and rapidly escalating healthcare costs – have caused employers to re-think their benefits policies, plan design and offerings.
Nearly half of employers (45%) list ‘challenges related to rapid growth and/or higher than normal turnover’ as their primary Human Resources strategic obstacle. And, with US health expenditures projected to grow by 47% by 2028, two-thirds of employers say they want to implement an innovative benefits cost containment solution.”
Additionally, “Against a backdrop of rapidly growing healthcare expenses, two-thirds of employers want innovative cost containment solutions. More than half (53%) would need the cost savings percentage to be between 11% and 15% to implement a cost containment solution.”
With this in mind, here are 9 employee benefits that we predicted are important in 2023:
1) Increased focus on wellness and preventative care:
With the rise of chronic diseases such as obesity and diabetes, companies are starting to see the importance of investing in employee wellness programs.
In 2023, we predict that more employers will offer health screenings, nutritional counseling, and even fitness subsidies to help their employees stay healthy.
2) More flexible employee benefits packages:
Flexible employee benefits packages are becoming increasingly popular as employers seek to offer more tailored solutions for their workers.
Employees can customize their own benefit package, choosing from a range of options that best suit their needs. This could include health savings accounts, child care assistance, or even commuter benefits.
3) Growing focus on employee engagement:
Employee engagement has become an important part of any organization’s success in 2022 and 2023 will be no different.
Companies will continue to invest in employee experience programs such as employee recognition awards and social activities to help keep their employees engaged and motivated.
4) Increased transparency about employee benefits costs:
More companies are becoming transparent about employee benefits costs.
This will help employees better understand how much they are paying for their employee benefits package, and allow them to make informed decisions when selecting the right plan for them.
5) More emphasis on work-life balance:
With the rise of telecommuting and flextime policies, employees are placing a greater emphasis on work-life balance.
We expect to see more companies offering employee benefits packages that focus less on employee productivity and more on employee satisfaction.
6) More generous executive compensation packages:
Executive compensation is one area where companies are increasing their spending in 2023.
Many employers are offering higher salaries, stock options, and other incentives to attract top-tier talent.
7) Greater emphasis on employee learning and development:
Companies are beginning to understand the importance of investing in employee learning and development.
We anticipate that more employers will offer training programs, continuing education opportunities, and even mentorship programs to help their employees succeed.
5) Cost control initiatives:
As employee benefit costs continue to rise, companies are looking for ways to keep them under control.
In 2023, we expect to see more employee benefits packages that focus on cost-saving measures such as employee wellness programs and flexible spending accounts.
6) More employee-focused financial benefits:
Employers are starting to realize the importance of employee financial health.
We anticipate that more employee benefit packages will include retirement planning services, debt management tools, and other ways to help employees achieve their financial goals.
7) Increased emphasis on employee engagement:
Employee engagement is becoming a priority for companies in 2023.
We expect to see more employers offering employee perks such as team building activities, recognition programs, and employee appreciation days.
8) More employee-friendly technology:
Technology has become increasingly important in the employee benefits landscape.
We expect to see more companies investing in employee-friendly software such as digital learning platforms and online wellness tools.
9) Greater focus on environmental sustainability:
As environmental awareness becomes more prevalent, we anticipate that more employers will offer plans that focus on sustainability initiatives.
This could include things like green transportation options, workplace recycling programs, and other eco-friendly practices.
To sum up, we expect to see employers offering more generous compensation packages, improved work-life balance initiatives, cost savings measures, educational opportunities, employee engagement activities, and eco-friendly practices.
Companies that take advantage of these emerging trends will have a competitive edge when it comes to attracting top talent and keeping employees happy.
At Prosperity QB, we keep your company’s insurance updated. We will review your coverage, seek gaps, and ensure your limits are where they need to be to solidify the best insurance services for your needs. Visit our website or to enquire, contact us today.
