temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; 2022 Benefit Trends in an Era of "The Great Resignation" Mental health has become a rapidly-growing area of attention when it comes to employee benefits. Employers are adjusting to the rules, however, as some employers have responded to the new laws by posting very broad salary ranges. This will continue to get worse unless companies support their working parents. For company leaders, the public health crisis led to a broader perspective on what mental health and wellness means for many workers. }); if($('.container-footer').length > 1){ How will leaders communicate the guardrails of working successfully from anywhere? Yet smart and targeted investments in employee benefits can yield results, especially when the employees value the benefits. To that end, Verizon conducts quarterly employee engagement surveys and supplements those findings with feedback through other channels, including focus groups. Working in 2021 taught us we need to develop resilience to adapt to rapid fire changes in how and where we work. As the price of most things rose, so did health care costs. Listen to Employees' Needs. And HR consultancy Mercer found that concerns over inflation have made financial health employees' greatest unmet need and that insufficient pay is causing employees to look elsewhere for higher-paying jobs. With the spread of the Omicron variant, a growing number of school districts in the United States have postponed reopening of schools or switched to remote instruction. That required adopting a much broader definition of employee benefits. Global companies may also need to act on employee feedback based on geography. This has exacerbated what has already become a crisis situation for working parents. One way employers are giving employees increased flexibility is by offering remote or hybrid work opportunities to those who dont wish to go into the office every day. Need assistance with a specific HR issue? Resilience can be learned, reinforced and spread through an organization. More companies are piloting skills-based hiring, or the practice of setting specific skills and competency requirements for a job rather than only looking at a candidates credentials. Since the pandemic, well-being has expanded beyond focusing on the individual employee to the entire family unit. We outfitted everyone whose position allows for remote work with the necessary technology so that they can work remotely up to three times a week, Dann says. As Figure 1. Skills based hiring expands the prospective talent pool but also allows internal employees opportunities greater visibility into their career mobility by providing them with educational pathways for specific industries and job functions. Megan has been partnering with clients as a specialty and general broker for 10 years, providing guidance and expertise in research, implementation, and administration of group benefits, with a special focus on middle market organizations. The projected increase might be even higheraround 7 percentif employers did not make changes, Mercer found. While raising wages is one way to attract and retain employees, research conducted by Paychex and Future Workplace among 603 full-time workers found 62% of employees identified well-being benefits as key a key factor in deciding whether to apply for a new job. Benefits budgeting will also be a challenge. That's "because of the tight labor market and the desire to keep health care affordable for employees," said Jeff Levin-Scherz, population health leader at WTW. Virtual & Las Vegas | June 11-14, 2023. We found that people are most likely to leave during the second and third years, Dann says. J.S. Regardless of the cause, these feelings have led to the intensifying pressure on employers to provide further support. Social media is here to stay, so the sensitivities around that must always be front and center for the whole organization. With turnover rates higher than ever and talent shortages widespread, HR (and other organizational leaders) must be listening to their employees' needs and where possible, meeting those needs without retribution. Figure 3: Top Challenges Facing Heads of Learning in 2025. #3 Hybrid Work Is What The Majority Of Workers Want. When hiring a leader, soft skills will weigh significantly more. These findings are especially important as 75% of workers say they expect their employer, and business in general, to be a force for good in society. A new type of employer-offered benefit thats gaining traction is called a Lifestyle Spending Account (LSA). Employee Benefits Trends Study 2022, MetLife. For Paul Dann, executive director of NFI North Inc., a nonprofit health care agency based in Contoocook, N.H., meeting that challenge meant determining why people were quittingand finding ways to address those issues. Christa Reed, Job Market Research Head of JobSearcher. This is a BETA experience. Miracle urges company leaders, rather than HR, to take charge of this effort. New York City joined other cities such as Toledo, Ohio, and states such as Colorado and California in passing pay transparency laws. What was once a knee-jerk reaction to discrimination in the workplace, organizations are now intently listening to the sound of diversity, equity, inclusionand belonging. Please log in as a SHRM member before saving bookmarks. For example, at employees request, the agency created a shared sick-leave bank to which employees can donate some of their sick leave and from which they can draw time off if needed. Linda Shaffer, Chief People Operations Officer of Checkr. Practice Fair Chance Hiring for Those with Criminal Records. Many employers choose to offer tax-advantaged accounts in their benefit packages. A leaders EQ will be measured in order to hire a person that can practice the employee first culture. The opportunity to stand out as an employer comes from offering other, targeted benefits. In the process, theyre likely to find that what qualifies as an employee benefit is rapidly changing. This percentage reaches 80% for those under 45 years old. In 2022, the Employee Benefits Survey regained a sense of normalcy both in terms of returning to traditional timing for data collection as well as reintroducing many specific benefits that were removed from the survey during the height of the COVID-19 pandemic. var temp_style = document.createElement('style'); This needs to change. #10 The CHRO Role Has Been Elevated And Changed Forever. Segals Khamis recalls the recent #showusyourleave viral movement launched by theSkimm media company that gave companies an opportunity to highlight their parental-leave policies. Respondents who say they work for organizations with at least $1 billion in annual revenues are nearly 1.7 times more likely than those at smaller organizations to say environmental topics outrank social and governance . Articulating and communicating your stance on flexibility, in all its forms, is essential to attracting and retaining right-fit candidates in todays tight labor markettrust me. Women leaders across all sectors are deciding to leave their organizations because of three primary factors.. The environment is different, and there is the feel of a cultural change, she notes. At many organizations, this has rarely been the case. The 2021 Workplace Learning Report finds 59% of Learning leaders cite up-skilling employees as their number one priority. That left the last issue: employee benefits. You can configure your browser to alert you when a website is attempting to send you a cookie and to give you the option of refusing the cookie. Sarah Chavarria, Executive VP & Chief People Officer of Delta Dental of California and Affiliates. The 12 Biggest HR Trends in 2022 | Blog.SHRM.org Join us at SHRM23 as we drive change in the world of work with in-depth insights into all things HR. Hewlett Packard is an inspiring example of expanding benefits to employees and their families. To manage the hybrid or remote working model, employers will need to change the way they track employee activity in order to maintain trust. For example, in addition to offering traditional mental health support such as employee assistance programs and access to therapy, Verizon significantly expanded its support for caregivers. A late June survey from the International Foundation of Employee Benefit Plans found higher interest in abortion benefits: It found that more than 1 in 4 employers (26 percent) say they are . This directly impacts companies with reduced workplace attendance and productivity. It sends a message when employees see their employer take the initiative and get ahead of something like this, says Michael Khamis, a vice president of HR and benefits at consulting firm Segal in Los Angeles. With most familiarizing themselves with Zoom due to stay-at-home orders early on in the pandemic, many realized the added convenience and accessibility video conferencing provided in terms of their care. Carroll notes that organizations are most successful in making strategic adjustments when these discussions include perspectives from people outside HR. $("span.current-site").html("SHRM China "); Virtual & Las Vegas | June 11-14, 2023. In addition to financial wellness, nearly 30% of the workers surveyed in the Paychex and Future Workplace survey requested improved mental health support and resources. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Others allow employees to work less structured hours maybe three longer days and two shorter days each work week. Hybrid work is here to stay. $("span.current-site").html("SHRM MENA "); Employer health plans will continue to be affected by rising healthcare costs. A late June survey from the International Foundation of Employee Benefit Plans found higher interest in abortion benefits: It found that more than 1 in 4 employers (26 percent) say they are exploring the expansion of covered abortion servicesincluding nonelective/medically necessary services, elective/nonmedically necessary services, medication, telehealth and travel benefits to locations where services are performed. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { The increase in employer offerings has risen to 91% with equal accessibility deemed a high value for employees. If employees have the opportunity to complete their work on their time, it may lead to higher job satisfaction and lower desire to seek new opportunities. Its important to make sure employees have time to relax away from the high-pressure work environment and to take care of family needs, says Donna Miracle, chief operating officer with consulting firm HR Strategy Group in Ellicott City, Md. LSAs may cover expenditures like fitness memberships, athletic equipment, home office expenses, and so much more. However, the way these are offered has changed as the workforce becomes increasingly mobile and focused on a healthy work-life balance. The greatest trend HR is facing is the demand to recruit, hire, and retain great talent. These are some of the tangible steps being taken to help alleviate equity concerns, however, many employers and participants alike recognize that not enough is being done. Though retirement and savings were still deemed valuable pre-pandemic, the idea of saving seemed lower on the priority list as people were adjusting to furloughs and layoffs and eventually, voluntary resignations and career changes. According to the Bureau of Labor Statistics, over 47 million employees quit their jobs in 2021, leading to an immense amount of job openings and employers struggling to fill open positions. The HR and Learning teams have become the cobblers children, forgotten and left to their own devices to up-skill themselves. SHRM has recently published its 2022 Employee Benefits Survey which shows the trends worth paying attention to as employers prepare for the upcoming benefits renewal season. SHRM 2022 Employee Benefits Survey: Evaluating the Trends Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. This makes defining successful work from anywhere practices critical for employers. I write about Trends Shaping The Future of Work, Exit Of Twitter Execs Is Reminder For Need Of A Deep Bench Of Talent. Organizations that are least successful are not having these conversations at all. Its important to start the conversation about what this type of approach to benefits would look like, not only now but in the future. Need assistance with a specific HR issue? Finding what fits best for each company requires a tailored approach and mixing trends with workforce needs. In, The Evolving Role Of Learning In Workforce Transformation, Future Workplace, in partnership with GP Strategies, surveyed 549 global HR and Business leaders to uncover how learning is expanding across enterprises and what the implications are for new capabilities needed among learning & development teams. Experts also said that regular communication about mental health offerings and other benefits, as well as regular check-ins and surveys to monitor how workers are feeling, is important. #4 Employees Seek Companies Whose Values Match Their Own. Employee Benefits Trends Study 2022, MetLife. The key reasons turned out to be the relationship with their manager, not understanding the value of employee benefits and unhappiness with pay levels. In this webinar, EBCs VP of Business Development Brian Connelly will be reviewing current employment and benefit trends, and how employers are responding with innovative ideas to compete in the war for talent. Prioritize Social Media and Brand Awareness. The projections were developed after taking plan design . According to the 2022 LinkedIn Global Talent Trends Report, a work-life balance was the most important factor that individuals sought when looking for a new position. They also will offer proficiency certifications targeted to re-skill workers for in-demand fields such as Engineering, Information Technology, Mechanical and Electrical Trades, Healthcare, Construction, Transportation, and Accounting. Their HP Spirit Program provides health and well-being apps, educational resources for working parents on managing home schooling, an Employee Resource Group for Working Parents, and job sharing for select job roles. Across the board, employees are feeling more overwhelmed, depressed, and burned out, and decreased feelings of motivation, engagement, and productivity. While this does not mean working in the same job for 60 years, it does pose an important question for HR leaders: How can increasing a companys commitment to lifelong learning be used to up-skill and re-skill current workers over what may be a 60 year career? ESG impact and effective ESG operating models | McKinsey In the onset of the pandemic, medical claims dropped to immense lows mainly because people werent able to seek preventative and elective care. Paid maternity leave fell from 53% in 2020 to 35% in 2022. With over 50% of households being dual working at this point in time, expectations and company policies are required to change in order for businesses to retain top talent and continue to survive. As every aspect of business continues to transform, one of the key things we need to do is create purposeful experiences in the office that deliver real value so that our direct, face-to-face interactions have meaning. Soaring inflation was the common factor behind many of the biggest headlines in the world of compensation and benefits in 2022, but other developments were on employers' minds as well, including abortion benefits in the wake of a landmark U.S. Supreme Court reversal; transparency around job salaries and wages; and employee mental health in a time of extreme global insecurity. That may require a better story for benefits so you can raise your hand and be confident saying, Yes, we have the goods. . } To request permission for specific items, click on the reuse permissions button on the page where you find the item. Please enable scripts and reload this page. The agency, which has 400 employees and serves patients in Maine and New Hampshire, developed a dashboard to measure longevity by position and to identify when people were most likely to seek other opportunities. You can also check your hard drive for cookie files. A workplace run by AI is not a futuristic concept. Meanwhile, unlimited PTO has grown in popularity among employees and job candidates, yet only 6% reported offering this benefit. Recognition is another key part of this customized benefits strategy. May 19, 2022 | All, Benefits Administration. Please log in as a SHRM member. When in Doubt, Ask Because Verizon has thousands of employees in every demographic group, its benefits have to cover many bases. With offices in 15 countries, SES-imagotag has discovered differences in employee benefits preferences across various regions and offices. So far, the news is positive: Employee retention levels have almost doubled, and there has been a 40 percent increase in engagement, as measured by how many shifts individuals are taking per month. This provides critical help to parents while giving companies a competitive edge. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Of those offering retirement plan options, 83% contribute with (varied) employer matches for 401(k)s, and 76% contribute to Roth 401(k) plans. Please purchase a SHRM membership before saving bookmarks. Here are 12 of the biggest HR trends in 2022: While some employees will prefer working from an office, many more have discovered over the past two years that they are happier and more productive working from home. One of the biggest trends we will see is organizations continuing to shift toward a people-first culture and making it a business priority. What will the employee population look like three, five or 10 years from nowage, gender, number of dependents, marital status and so on. This is what will drive and shape employee benefits in the future. Benefits and Compensation in 2022: A Look Back - SHRM Copyright 2023 Employee Benefits Corporation | Privacy Statement | Terms of Use, Distributing Required Notices: What You Need to Know, IRS Releases Updated Form 720 for PCOR Fees, Copyright 2023 Employee Benefits Corporation |, 2022 LinkedIn Global Talent Trends Report. In many ways, the priority of employee benefits hasnt changed too drastically. Some never want to be in the office and some need the engagement and collaboration that can happen in the office, but most of them just want to be trusted to make that choice themselves., As employers look for the right benefits for their workforces, its important to take a thoughtful and balanced approach. This research identified building a culture of lifelong learning and up-skilling learning and development team members are the top two priorities for 2025. Child Care has risen at more than twice the rate of inflation, causing some parents, especially women, to leave the workforce. Within a year, the company saw encouraging results with increased employee tenure and less turnover and burnout. On a personal note, Megan lives in Woodinville with her son Cooper (1), husband Alex, and golden retriever Bailey. Get the expertise, technology, and personable management you need to keep costs on budget, employees happy, and candidates excited about your company. It also taught us we need to become proficient at seamlessly working across multiple technology platforms including,Zoom, WebEx, Slack, Stream Yard, and Microsoft Teams, not to mention a range of new virtual reality platforms like Strivr, Immerse, and BodySwaps. ExtensisHR partners with startups by taking care of all HR, compliance, employee payroll, and benefits administration so they can focus on their bottom lines. Employers in the U.S. expect medical plan costs per employee to rise 5.6 percent on average in 2023, Mercer reported earlier this year, a significant jump over the premium increase of 4.4 percent expected for 2022. USI is a leading national insurance brokerage and consulting firm delivering customized employee benefits, property and casualty, personal risk, and retirement solutions throughout the United States. The CHRO has emerged as a key member of the C-suite, working with heads of Technology, Finance, Real Estate, Workforce Transformation, and the Chief Medical Officer to ensure a safe return to the office. In addition, consultancy WTW's July Salary Budget Planning Report found that companies are budgeting an overall average increase of 4.1 percent for 2023, compared with the average actual 4 percent increase in 2022. Interested in learning more? Comprehensive compliance expertise on EPP, Risk Management & Workplace Safety, State Unemployment & Workers Compensation.