The landscape is changing regarding what your staff needs in terms of benefits. I reviewed a 2022 Society of Human Resource Management report and a 2025 March McLennan report.
Before I start boring you with a little data, be aware that [if you are a decision-maker in your workplace about employee benefits] it is time to meet with your broker. And I would urge you to consider speaking to at least two other brokers, to get the best price for your organization and employees. Open enrollment is more often in December for a January 1 start. If you want to know what your employees need and want, pull together a committee with employees. It is good to hear from employees if you are shopping for employee benefits. Even something as “simple” as switching vision plans can be problematic.
In 2022, employers reported that 93 percent of organizations offered telemedicine, up 20 percent from 2019. It probably had much to do with COVID but has worked well for many. Nearly 98 percent of organizations reported offering health care coverage, either fully funded or self-funded. If you do not know the difference, your insurance broker does. Employees love Health Savings Accounts, or Flexible Spending accounts.
Retirement plans are a must. A 401K and Roth plan needs to be offered and encouraged. Beyond health insurance, this is the best gift you can provide employees. However, you must educate them, so they understand the importance of saving and taking advantage of pre- and post-tax plans. Over half of employers automatically enroll employees in these plans.
Employers offer leave, and I firmly believe in Paid Time Off (PTO). Why classify vacation differently from sick leave? Do you care why someone is out with proper notice? This is where that employee handbook is so essential. Your employees also need Employee Assistance Programs (EAP). Everyone also likes professional development and assistance with education. Offering childcare is a fantastic benefit, and with your multigenerational workforce and the sandwich generation, employers may want to consider senior care for parents and flexible time to work from home to care for aging parents and ill children.
Artificial Intelligence (AI) will change everything; you must upskill your workforce. Using AI will dramatically increase your Human Resources (HR) department’s efficiency.
The cost of insurance will not get any less expensive, nor will the cost of prescription drugs. Work with your insurance broker to assist you in pursuing pharmacy benefit managers (PBMs) to offer different pricing and encourage using alternatives to name brands. The new name for alternative brands is biosimilars. Educate employees on where to go for emergency healthcare. Not every roadside clinic takes your insurance. Those shopping center groups are in it to make money and care for your ill employees. I am a fan of an urgent care chain that has expanded in the Permian Basin. When I am sick, I start with either urgent care or telemedicine. It is less expensive and more efficient regarding the time the visit takes, the immediacy of care, and getting the scripts I may need.
Be conscious of the four groups of workers. Boomers are going to eventually retire, and if not, they want great insurance. Gen Xers are taking care of children and aging parents and need the PTO. Millennials wish to be supported with financial wellness and career assistance. Millennials are not fans of the debt many Gen Xers incurred for their own education. Gen Z wants healthcare that assists them with mental health support and work-life balance. I like it all. What about you?
Lastly, encourage a wellness program. The most significant causes of illness still go back to obesity and smoking. Obesity drugs are very popular, and although we may not know long-term effects, cover them for your employees.
Remember, many majors offer these benefits and more. Be competitive so that your organization is not a revolving door. Turnover costs money.
Michele Harmon
“Your employees are the heart of your organization.” Dr. Michele Harmon is a Human Resource professional, supporting clients in Texas and New Mexico that range in size from five to more than 3,000 employees. Email: micheleharmon1@gmail.com
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