Has the pandemic made employers re-evaluate their benefits strategy?

Whilst many organisations were beginning to recognise that benefits programmes needed to evolve, the pandemic has speeded up that process.

The year 2020 certainly presented its share of unexpected events. Even with the best planning, no-one could predict a global pandemic, or the impact that would have on how, and where, people work.

From an employee benefits perspective, many employers have had to adapt their offerings, either as a result of tougher financial conditions or in response to remote working and the greater emphasis on health, in an attempt to ensure schemes are as futureproofed as possible in the uncertain climate.

Because of this, last year accelerated the need for benefits that connect people to purpose, accomplishment and each other. These include the likes of health and wellbeing, along with appreciation, leave entitlement and flexible working.

This was made clear in some research carried out by Unum in December 2020 - Employee benefits and the value of help. This found that 95% of employers felt the pandemic had highlighted the need to make people feel more protected, whilst 68% said investment in health and wellbeing has grown in importance over the past two years.

The events of the past 12 months have perhaps also shown us that some of the more gimmicky benefits, such as stylish in-house gyms, ping pong or nap rooms, are less important than what employers can do to support their employees’ overall wellbeing.

One trend that has picked up pace is the provision of virtual and digital benefits. Part of the challenge for employers going forward will be how to strike that balance between the traditional spend on classic insurances and face-to-face delivery, versus virtual and digital health solutions that can lower costs whilst still being tangible in terms of demonstrating health outcomes.

With a much more uncertain economic outlook, financial education should also form part of any futureproofing benefits strategy. This will certainly include helping employees with their retirement savings but should also include more holistic financial planning support. For example, the need for emergency savings, along with appropriate protection products such as income protection, critical illness cover and life assurance, has been bought to the fore by the pandemic. The past year has seen an information overload and employees need to know how to cut through the noise to get to grips with what really matters.

There are broader trends that need to be factored into the design of any plan too. For example, there is a need to provide employees with a degree of choice. A futureproofed benefits strategy should incorporate multiple options, allowing employees to make the choice that best suits their needs. This approach will result in the greatest return-on-investment on benefits schemes. Talk to Kellands Corporate to find out about an easy-to-use employee benefits platform that could revolutionise the way you engage with your employees, whilst meeting changing employee expectations.

It’s probably fair to say that, after last year, the workplace will never be quite the same again. That could also be said about employee benefits programmes.

If you would like to discuss your future benefits strategy, or any of the other issues raised in this article, please do not hesitate to contact Kellands Corporate.

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