Starting in 2021, a movement known as the Great Resignation swept through the U.S. workforce, leading to millions of employees quitting their jobs and finding new employment at an unparalleled rate.
COVID-19, economic fluctuations, and declining job satisfaction all played a big part in this, with employees now displaying a far higher willingness to switch employers when their needs are not being met.
As a result, employers have had to adjust their benefits offerings to attract and retain talent.
Some of these benefits include more flexible work-from-home schedules, increased access to voluntary benefits, and a greater focus on wellness programs.
However, while this shift is already under way, employers are already asking themselves where employee benefits will be in the next few years.
For life and health insurance agents, answering this question will be crucial for developing competitive insurance offerings both now and in the near future.
Employers, as always, have a lot of options when deciding on a provider for their benefits packages and will be more inclined to choose one whose benefits align with the needs of their employees.
With that in mind, here's a look at what employee benefits will look like in 2023 and beyond.
Remote Work: Here to Stay
The COVID-19 pandemic and resulting lockdowns forced many businesses to place all or most of their employees on a remote model.
Now that the worst effects of the pandemic are in the rear-view mirror, many senior managers have displayed an eagerness to get everyone back in the office.
However, this return-to-the-office drive has been met with a lot of pushback from employees who have grown used to the benefits of working remotely.
As a result, employers have been forced to compromise by allowing for more flexible scheduling.
While some business leaders might dismiss this as a temporary measure, the reality is that remote work is likely here to stay.
To understand why, one need only look at the changing demographics in the workforce, which is now increasingly made up of Millennials and Gen-Z workers, who have shown the greatest willingness to vote with their feet when their desire for remote work is not met.
As such, businesses would do well to recognize remote work as a core part of their business strategy.
Doing so can have productivity benefits as workers will feel more satisfied with the ability to choose their own hours.
However, to gain those benefits, employers must make an effort to provide adequate support and training for their remote workers.
Portability
For the longest time, most employee benefits programs have consisted of one-size-fits-all group policies for health and life insurance.
While such group policies are easy to put together, they often come with meager payouts and don't transfer when an employee switches jobs.
As a result, employees are increasingly demanding access to supplemental individual insurance policies.
This transition from group to individual policies will have two major implications for employee benefits.
The first implication is that companies should offer a wider variety of policies for employees to choose from, including disability insurance, pet insurance, and supplemental life insurance.
Each of these policy types can be fully customized to suit the needs of individual employees and can transfer with them when they switch employers.
