Employee Benefit News for School, City and County Employers

Employee Benefit Trends for 2023

Written by Nicole Miller | Feb 7, 2023 5:15:19 PM

2.5 minute read

Current labor changes are making employers find ways to balance the rising costs and inflation while providing employees with benefits they value and need. Understanding this year’s employee benefit trends can help employers assess if their offerings meet their employees’ demands and needs so that they can attract and retain talent.

6 Key Employee Benefit Trends

Employee Well-being

Many employees are experiencing elevated stress, burnout, and poor mental health due to inflation, increased job duties, and the lingering effects of the pandemic. Many employers enhanced their mental health and well-being benefits to better support workers in the pandemic and more are expected to prioritize employee well-being in 2023. Here are some things that employers are further investing in:

 

Health Care Costs

Reigning in health care costs while keeping benefits affordable is critical for employees in 2023. Planning and implementing multiple strategies to manage health care costs can help employers develop cost-saving strategies such as:

  • Investing in telemedicine
  • Modifying health plan designs
  • Improving health care literacy
  • Incorporating health care analytics
  • Incentivizing employees to seek cost-effective care options

 

Pay Transparency

Many states and localities have implemented pay transparency laws. And pay transparency is becoming more important to workers. Employers that provide pay transparency information tend to receive more applicants. By disclosing this information, employers can save time and money in recruiting by ensuring candidates won’t reject job offers due to insufficient pay. Employers may consider implementing practices such as published pay scales for their open positions.

 

Voluntary Benefits

Offering voluntary benefits can be an effective way to help workers avoid financial setbacks and stretch their dollars without raising costs. With voluntary benefits, employees can choose which benefits matter to them. Dental and vision insurance are popular voluntary benefits but nontraditional offerings are increasing in popularity as well. These include:

  • Critical illness insurance

  • Accident insurance

  • Pet insurance

  • Student loan repayment assistance

  • Identity theft protection

  • Disability insurance

  • Life insurance

 

Family Friendly Benefits

Many employers are increasing providing employees with family-friendly benefits, such as paid parental leave, paid adoption leave, and surrogacy benefits. Other support includes family planning assistance, high-risk pregnancy care, and pregnancy, lactation, postpartum, and menopause support.

 

Flexible Work Arrangements

One of the most effective ways to improve employee mental health and well-being is to find work-life balance. Some employers have helped employees by offering remote and hybrid work. This can also benefit employers on overhead costs and gives them access to a larger talent pool.

 

Summary

Current benefit trends can help guide employers as they strategize and take action. This will help employers to respond in meaningful ways to help keep employees healthier, happier, and more productive. Download the bulletin for more details.