How to Benefit from Employee Benefits
As the time to review and renew your business’s insurance coverage approaches, it’s essential to consider all the available options. The COVID-19 pandemic has changed the face of insurance, and businesses have to diligently assess their insurance decisions make sure they make sense for their business and their employees.
With that in mind, there are three things to keep in mind when deciding your company’s 2021 insurance coverage:
What employees want
What employers are doing
Is your current insurance plan working?
What Employees Want
Employee benefits have become an increasingly integral factor in employee satisfaction. In a recent survey by HR consulting firm, Willis Towers Watson, nearly half of the respondents said they would be willing to sacrifice additional monthly pay if it meant they would receive a more expansive health plan. Digging deeper, nearly three-quarters of employee respondents feel their health care benefits meet their needs; just under half feel their employer-provided health and well-being support meets their needs. Only one-third feel their employer provides adequate financial management resources.
Ultimately, employees want a moderate number of robust benefit choices. They are happy to choose benefits, but too many options can be overwhelming. Culling the plans to a few different alternatives allows employees to study and decide which works best.
What Employers Are Doing
As employers plan employee benefits for the 2021 plan year, their Human Resources department faces unique challenges in the ever-evolving COVID-19 pandemic. They must decide how best to allocate the benefits budget, choose which benefits programs to offer, and how best to communicate the inevitable changes to employees.
When thinking about your 2021 benefits budget, consider that the largest employers in America expect to see their healthcare costs and premiums increase 5-6%. You can expect that percentage to be higher for smaller companies, so consider how higher prices will affect your budget.
In a survey conducted by benefits consulting firm Mercer, respondents said they anticipate changes in benefit offerings to offset the increase. The top five responses included expanding virtual or telehealth, enhancing mental health support, increasing cost-sharing for plan expenses, adding or expanding voluntary benefits, and augmenting services for managing high-cost claims.
Is Your Current Insurance Plan Working?
To know what to do moving forward, you need to evaluate your current benefits plan. The first question to ask is whether your current benefits strategy is working. Then, you have to assess whether it will work in 2021. After that, you should set up a benchmark to decide how you will know when your current strategy is no longer feasible or, if you have already passed the point of no return when the current strategy stopped working.
Clearly, 2021 will be a challenging year for employee benefits. With so many factors to consider, the process could quickly become overwhelming. Fee Insurance Group is here to help you navigate the pitfalls. Reach out, and we will work to move your employee benefits forward, together.