The past year’s tight labor market has made finding new hires more challenging than usual for employers, and it looks like the trend will continue throughout much of 2019. In order to attract and retain qualified talent, employers aren’t merely offering competitive salaries; they’re also revising their benefits packages, which many employees heavily scrutinize when entertaining job offers. As we enter 2019, here are some of the employee benefits trends that will shape overall compensation in the coming year.
Health insurance remains the most trying employee benefit for employers to manage (and not only because many are required to offer it). Health insurance has always required a balancing act between giving employees valuable coverage and managing company costs.
In 2019, employers are approaching this balancing act by promoting convenient and high-level service while mitigating the costs associated with major claims (the top 1 percent of which use more resources than the bottom 75 percent of policyholders). Employers are accomplishing this via five methods:
As society increasingly recognizes the importance of mental health, more and more employers are including counseling for an array of issues. The first step employers usually take is to include behavioral and mental health issues in their standard insurance coverage. Some, such as Southwest, go even further to include issues related to stress, grief and relationships.
Financial Benefits: Focusing on the Needs of Millennials
Retirement savings accounts, like IRAs, 401(k)s and their Roth counterparts, remain significant components of many employee benefits packages. The financial benefits being offered, however, are notably shifting toward the needs of Millennials. Some of the benefits that are becoming more common include:
Despite being offered by only a small percentage of employers, unlimited paid time off has been promoted as a hot and desirable benefit in recent years. The lure of being able to take time off whenever it’s beneficial is powerful, but the reality has been less-than-ideal. In addition to not recouping a substantial payout if they don’t use their paid time off, workplace culture frequently pressures employees into not utilizing their unlimited time off. Rather than taking lots of time off, employees often take very little or no vacation.
In response to this trend, employers are looking for other ways that enable employees to take time off and protect that time. This plays out in two different ways depending on employees’ level within an organization:
In addition to the major benefits mentioned above, an increasing number of employers are offering non-traditional benefits or perks. These range from discounted pet insurance to employee discounts on products and services, and many are provided as optional features.
There’s no shortage of potential perks, and some employers have been especially creative. A few of the more intriguing ones include:
While there are many different ideas emerging, one constant holds true through all of these 2019 employee benefits trends. Benefits in health insurance, counseling services, financial services, time off and perks are all becoming more personalized, and even communications around employee benefits are being personalized to individual employees.
There’s no longer a few benefits that all workers participate in. Instead, there are now many different options that employers offer and let employees choose from. Even within the standards, like health insurance, choice within a network is being prioritized.
To keep your business at the forefront of the employee benefits trend, work with an employee benefits broker who knows what’s working in 2019. Contact us, and one of our specialists will help personalize your company’s benefits to meet financial restrictions while giving employees what they want. With our assistance, your company can be well-positioned to attract and retain talent throughout the entirety of the coming year and be recognized as an employer-of-choice.
What are you doing to capitalize on upcoming employee benefit trends? Leave us a comment below or contact us. We’d love to hear from you!