Many of the challenges that plagued workplaces in 2022 will likely continue this year and beyond. Current labor challenges are forcing employers to find ways to balance rising costs and inflation while providing employees with the benefits they value and need. Understanding this year’s employee benefits trends can help employers assess whether their offerings meet employee demands and needs.
Here are six key employee benefits trends for 2023:
1. Address health care costs.
Finding ways to reign in rising health care costs while keeping benefits affordable is critical for employers in 2023. Implementing multiple strategies to manage health care costs can help employers develop cost-saving strategies, such as modifying health plan designs, improving employee health literacy and investing in telemedicine.
2. Prioritize employee well-being.
Employers are expected to prioritize employee well-being by enhancing their mental health and wellness benefits to better support workers experiencing elevated stress, burnout and poor mental health due to inflation and the lingering effects of the pandemic.
3. Focus on reproductive health.
Many employers are offering employees family-friendly benefits, such as paid parental and adoption leave and surrogacy benefits. Others are providing specialized benefits to support women’s reproductive health.
4. Expand voluntary benefits.
Employers are expanding voluntary benefits to help workers avoid financial setbacks and stretch their benefits dollars. Some of the most popular voluntary benefits in 2023 include critical illness insurance, identity theft protection and student loan repayment assistance.
5. Embrace pay transparency.
Pay transparency is expected to become the norm in 2023. By disclosing salary information and ranges, employers can save time and money while recruiting by ensuring candidates don’t reject their offers due to insufficient pay.
6. Continue flexible work arrangements.
Employers are offering remote and hybrid work models to help employees find work-life balance and improve their mental health and well-being. Flexible work arrangements can be a powerful retention tool for employers who embrace them.
While the best strategies will vary by workplace, being aware of current benefits trends can guide employers as they strategize and take action to keep employees healthier, happier and more productive.
The content herein is provided for general information purposes only, and does not constitute legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.