COVID-19 Could Change Benefit Plans For Good

Companies Are Likely to See Some Permanent Changes

When it comes to job satisfaction, salary isn’t always the top priority.

In today’s workforce, employee benefits play a critical role in recruitment and retention. But what was considered a great benefits package 20 years ago looks very different in 2021. After more than a year of disruption from the COVID-19 pandemic, many employers are realizing their benefit offerings need to evolve to stay competitive.

Let’s explore some trends that may shape the future of employee benefits.

Shifting Healthcare Plans

According to the Society for Human Resource Management, health insurance premiums have increased by 54% over the past decade. Employees have shouldered the majority of that rise—covering roughly 70% of the increase.

With the pandemic straining household incomes and business operations alike, many employers and employees simply can’t afford further premium hikes.

Reducing Costs Through Innovation

So how can businesses manage rising healthcare costs?

• Direct contracting with service providers—rather than using a third-party insurer—can reduce costs and streamline care. For larger companies, setting up an on-site primary care clinic can offer convenience while boosting productivity.

• The rise of telehealth during the pandemic has changed expectations around care access. While it may not replace every face-to-face visit, it’s proven to be efficient, convenient, and cost-effective, and it’s here to stay.

• Another growing trend is allowing personalized benefits selection. Employers might offer a base plan and allow employees to choose optional add-ons based on their individual needs—improving both satisfaction and cost efficiency.

Supporting Mental Health

The mental health challenges triggered by COVID-19 aren’t going away anytime soon. Stress, burnout, and emotional fatigue are affecting employee well-being—and, by extension, company performance.

Employers who prioritize mental health support, such as expanded counseling services or mental wellness programs, are not only doing the right thing—they’re also making a smart investment in retention, productivity, and morale.

Final Thoughts

The pandemic has permanently shifted how we think about work, health, and benefits. Companies that adapt will be better positioned to attract and retain talent in the years ahead.

To review your current financial picture or explore how these trends might affect your own planning, speak with a financial professional at NEST Financial.

Email us at info@nestfinancial.net to schedule a no-commitment introductory meeting.
Find us on: LinkedIn ​  Facebook​​  Yelp Twitter