2021 brought changes in how employees view benefits, and 2022 promises additional change and challenges. Together, we’ll walk through changes that will affect your benefits strategy in 2022, and how to respond to the changes effectively. Even though open enrollment has ended, it’s still important to tailor your benefits to your employees’ changing needs and ensure they get the most out of them this year.
Before looking into the benefits trend changes for 2022, it’s important to look back—the top benefits trends of 2021 will only grow in importance in 2022.
The past: an overview of 2021 benefits trends
In early 2021, it was easier to imagine life going “back to normal” as COVID-19 vaccines became available and the number of cases was trending down. As we enter 2022 with breakthrough cases and new variants, it’s clear that COVID-19 continues to plague the globe.
Since the beginning of the pandemic, workers have prioritized their own well-being, and they expect their employers to do the same, especially through the offering of comprehensive benefits. In fact, 62% of employees believe employee benefits are more important than ever before.
But what really is well-being? Well-being, traditionally thought of as physical health, is now considered an all-encompassing term which includes physical, mental, social, and financial health. In 2021, the trend was for employers to adopt this evolving definition and focus on well-being as a whole, including:
1. Physical: If employees were heading into the workplace in 2021, they expected to be safeguarded against COVID-19. Workers were concerned about their health and physical safety, and they expected employers to play a greater role in protecting them physically in 2021. This also includes enhanced medical benefits.
2. Mental: 99% of employees agreed that their job makes them feel emotionally drained. Burnout and depression are on the rise, in large part due to workplace and pandemic stressors. Many employers focused on offering mental health benefits in 2021.
3. Social: Workplace flexibility has been key in 2021. 76% of employees preferred remote work or alternative schedules. However, social health was still important. For example, employers offered social benefits such as encouraging employee collaboration and supporting balanced schedules. Also, in 2021, employees expected employers to address social justice issues and create a more inclusive workplace.
4. Financial: 86% of employees say that finances are a top source of stress. In 2021, many employers offered financial benefits including: financial advisor sessions, financial educational opportunities, debt counseling, 529 plans, refinancing tools, and student loan repayment programs.
The Society for Human Resource Management (SHRM) writes, “All these aspects don’t exist in isolation, and any might impact job performance.” If one aspect of an employee’s wellbeing is neglected, then other aspects start to be affected as a domino effect, which reduces an employee’s productivity. Increased employee well-being is consistently linked to higher productivity and revenue.
The future: 2022 trend changes
As we head into 2022, it’s important to keep 2021 trends in mind. But benefits trends aren’t static, and it’s no surprise that the trends are changing in 2022. While well-being as a whole is still emphasized in 2022, here’s what employees are voicing as their main concerns:
1. Physical and mental health: One of the major focuses in 2022 is to offer benefits that include remote medical services. 32% of employers say they are expanding their telehealth and virtual health options. Telehealth reduces the cost of healthcare, and can be offered for both physical and mental health care.
2. Increased workplace flexibility: We can expect the trend of increased workplace flexibility to continue in 2022. 86% of employers say they will continue to offer remote work arrangements, even after the pandemic. Work from home is here to stay and employees will be drawn to stay at or go to companies who are offering it.
3. 4-day workweek: As employers work to increase workplace flexibility, a promising option has been to switch to the 4-day workweek. This reduces hours for employees from 40 hours a week to 32 hours a week with no reduction in pay. Harvard Business Review writes that 4-day workweeks both employees and employers. Research has shown that 4-day workweeks make employees happier and 40% more productive!
4. An emphasis on social justice: Race and gender equality benefits continue to be a priority for employees. In 2022, expect to see more employers adopt or expand Diversity, Equity, and Inclusion (DEI) Programs and diversity training.
5. Financial health programs: The pandemic has caused economic instability and uncertainty, and 2022 will be no different. Inflation is expected to be a major issue in 2022. We can expect companies to focus on educational programs to make employee financial benefits more understandable. Increasing financial literacy will be a huge emphasis for employers throughout 2022. Areas to focus on include health care costs and retirement planning.
As we expand into 2022, many benefits trends echo and expand on the trends we saw in 2021, but employers are getting increasingly creative in how they’re responding to the needs of employees and competition among other employers.
How companies can keep up
Especially after open enrollment, it may seem like your window of opportunity for improving 2022 benefits has already closed. But open enrollment is not the last time you can communicate with your employees about 2022 benefits. Nearly 7 in 10 employees want to learn about their benefits AFTER they’ve already signed up for them. Employee benefits are intimately connected to peoples’ health, so communications must NOT stop.
Digital platforms are a great way to improve benefits messaging. 50% of employees prefer to learn about their benefits on an online portal. Other ways to digitally communicate with employees could mean utilizing emails, videos, and social media channels.
Digital tools make it easier for HR teams to maintain consistent communication with employees. Year-round, frequent benefits messaging is essential, but it is a lot of work for HR teams. Online portals can make frequent communications easier to accomplish through automation, which means less tedious work for your maxed-out HR team.
And the increased communication is worth it: Employees that understand their benefits are 78% more likely to be happy with their job. When employees feel like their benefits are easier to understand, they feel 41% more productive.
Digital communication helps you continually communicate with employees about benefits to improve their understanding leading to a happier, healthier and more engaged workforce.
How to improve benefits messaging
Help your employees feel valued and know that you’re listening to their needs by communicating your benefits throughout 2022. LearnYour Benefits is here to help you do so.
With LearnYour Benefits, you can expect to elevate your benefits messaging through a trackable digital platform that uses video to effectively communicate your unique offerings. Request a demo today to learn more!
