The Changing Landscape of Benefits
With the open enrollment season right around the corner, the focus is shifting from merely offering benefits to optimizing the value employees derive from them. Organizations are recognizing the importance of strategically aligning benefits with their workforce's diverse needs and preferences. This realization is particularly evident as employers continue to grapple with changes brought about by the pandemic.
One of the roles of Alight’s client service teams is to track their clients’ level of plan design changes. According to their research, approximately 40% of employers are making significant plan changes this year, with an additional 40% implementing varying degrees of adjustments. These changes stem from the dual goals of providing competitive benefits while effectively managing costs. Rising healthcare expenses have necessitated a careful evaluation of benefit offerings to ensure cost-effectiveness without compromising quality.
Shifting Priorities and Challenges
While benefits were once a primary driver for employees remaining at an organization, this seems to be decreasing over time. This year’s data shows that only eight percent of employees who recently left their jobs did so due to benefits dissatisfaction. This underscores the importance of addressing employee wellbeing, offering tailored solutions, and guiding employees through the complexities of benefits offerings.
The Generational Divide
When it comes to the importance employees place on their benefits, there are also generational differences. Millennials tend to value benefits more traditionally, but Gen Z employees are less concerned about them. The emerging workforce generations are shifting focus towards holistic wellbeing and the overall employee experience, including workplace flexibility, mental health support, and overall quality of work life.