Creating an Inflation-proof Benefits Package

2.5 minute read

As the U.S. economy faces the real possibility of an upcoming recession, employers are becoming increasingly concerned about inflation’s impact on their employees. Many employers are looking for creative solutions to better support employees while navigating a competitive labor market.

Strategies for Inflation-proof Benefits Package

Focusing on Comprehensive Benefits Packages

Due to the economic downturn, many employers’ budgets may be shrinking, and they have fewer resources to allocate to compensation and benefits. Employers can strategically invest in the benefits employees want and value most including mental health support, enhanced leave options, voluntary benefits, and financial wellness resources.

Establish Long-term Strategies

Employers need to implement forward-looking strategies to ensure employees benefit decisions align with long-term goals. Establishing overarching benefits strategies, such as budgeting for mandatory and optional benefits, forecasting benefits budgets into the future, providing employees access to high-quality providers, focusing on employee well-being, and improving employee engagement can provide organizations with multiple ways to effectively respond to a wide range of challenges and create inflation-proof benefits packages.

Implementing Innovative Approaches

Some employers are introducing innovative benefit offerings to meet employee needs without increasing costs to employees. These include things like wellness spending accounts, emergency saving accounts, paid time off conversion, and special equity grants.

Consulting With Third Parties

Many organizations might not have a formalized compensation process or compensation manager. This can make adapting their benefit offerings for an economic downturn extremely difficult. These organizations can work with compensation consultants to conduct an objective analysis of their benefit programs, develop long-term strategies, and make tailored adjustments. Skilled consultants have the expertise to help organizations implement benefits changes and avoid costly pitfalls.

Conclusion

By implementing benefits solutions to address inflation’s impact on employees, employers can address their attraction and retention challenges and help employees feel confident in their financial well-being. Download the bulletin for more details.