Sometimes it takes a big event, like a pandemic, to shake things up. While employee benefit offerings and methods of delivery have been evolving since the Affordable Care Act was enacted in 2010, we’ve never seen more rapid changes.
A few factors are converging to create a new employee benefits landscape with bigger challenges and more creative solutions. This includes escalating costs of employee benefit packages, competition for talent, and increased focus on the importance of Diversity, Equity and Inclusion.
Some important trends to note:
- Employees want choices and flexibility. Benefits are changing to meet the needs of the changing workforce.
- Open communication is key. Employee engagement requires a deeper understanding of the employee’s needs and preferences.
- Diversity, Equity and Inclusion is a priority. DE&I doesn’t just impact employee engagement. Candidates may not accept an offer if they perceive a lack of DE&I in your organization.
- Diversified benefits offerings. There’s more focus on well-being and behavioral health options than ever, and your offerings should support mental, physical, social and financial health to keep your business competitive in the market.
- Drug spending priorities continue. Specialty drug spending drives costs in health plans, and more than 2/3 of drugs in the pipeline today are specialty.
- Networks are narrowing. Plus, pharmacy programs will continue to gain traction across insurance carriers.
- More employers are looking for solutions. To provide more predictable costs and transparency in the employer-sponsored health plan, captives continue to emerge as an option to gain more control over costs.
It’s not the wild, wild, west out there, but achieving a more comprehensive benefits portfolio for your employees and business does require thoughtful strategic planning and a willingness to try something new. Contact the Catapult team at firstname.lastname@example.org to continue the conversation.
By Donna Bishop, Senior Vice President, Market Leader & Advisor with HUB International.