The 2021-2022 Aflac WorkForces Report highlights some trends in employee benefits that have occurred due to the pandemic.
The report reflects an increase in employee interest in supplemental benefits such as life insurance, critical illness, accident, and disability coverage. These types of benefits – over and above group health insurance policies – have seen a 10-22% rise in purchases during the last enrollment season, with COVID-19 cited as the reason for the increase. According to the Aflac study, millennials especially have a higher interest in supplemental benefits.
Businesses are facing difficult times right now, with staffing shortages and increasing insurance costs. The Aflac study reports that 74% of employers have raised cost-sharing on the part of employees to help cover rising premiums. And there’s a significant difference between what employers think employees want in their benefits package compared to what employees say they want. A high percentage of employers- 76% – believe their employees are “highly satisfied” with their benefits, but only 62% of employees expressed that view.
Employees typically choose the same benefits year after year, but employers can remind them that it’s a good idea to reevaluate their benefits selections each enrollment period to ensure they’re protected for upcoming needs. Employers can also work with benefits vendors to provide online tools and resources to educate and assist employees in making their decisions.
Benefits are a critical part of a total compensation package, so companies need to understand what their employees want and provide it in a way that’s as cost-effective as possible for both parties. To read the Aflac study, click here.