In the ever-evolving world of workplace culture, the importance of employee benefits has skyrocketed, particularly in the wake of significant changes since 2020. This blog recap explores insights from a recent episode of "Getting Personal with Compt," featuring Sims Tillirson, a seasoned expert in employee benefits education, communication, and enrollment.
Benefits are not static; they evolve to meet the changing needs and desires of the workforce. The discussion between Lauren Schneider, the Head of Brand and Communications at Compt, and Sims Tillirson delves into how companies and brokers can navigate this shifting terrain. One standout point is the current trend towards measuring the return on investment (ROI) and engagement of benefits programs, urging companies to reassess and potentially trim their offerings based on actual usage and value to employees.
Rise of Lifestyle Spending Accounts and Marketplaces
A significant shift in employee benefits is the movement towards lifestyle spending accounts (LSAs) and marketplaces. These approaches provide employees with a budget to spend on benefits that matter most to them, addressing the issue of oversaturation in point solutions and the paradox of choice. This flexibility aligns more closely with employee desires, offering a tailored approach rather than a one-size-fits-all package.
There are significant differences in lifestyle benefits through reimbursement and marketplaces, however. Learn more about that here.
Employee Engagement, Awareness, and the Disconnect from the C-Suite
Tillirson emphasizes the critical role of constant, effective communication in ensuring that employees are aware of and engaged with their benefits. Beyond traditional benefits like health insurance and 401(k)s, there is a growing demand for more personalized options that cater to individual needs and lifestyles, from pet stipends to financial wellness programs.
A recurring theme in the discussion is the disconnect between executive perceptions of valuable benefits and the actual needs and desires of their employees. This misalignment can lead to benefits packages that miss the mark, underscoring the importance of listening to employee feedback and understanding their real-world challenges.
Looking Ahead: Trends for 2024 and Advice for HR Leaders
As companies gear up for 2024, Tillirson predicts that mental health support, reproductive and menopausal benefits (or more generally fertility and family benefits), and holistic wellness programs will be at the forefront of employee benefits trends. However, he warns that while it's essential to keep up with trends, companies must also ensure that the benefits they offer are genuinely valued and utilized by their employees.
For HR leaders feeling overwhelmed by the vast landscape of employee benefits, Tillirson suggests starting with their brokers, who can provide valuable guidance and benchmarking data. He also recommends tapping into peer groups and professional communities for support and insight.
Employee benefits are a critical component of workplace satisfaction and employee retention. As the landscape continues to evolve, companies must stay adaptable, listen to their employees, and be willing to reassess and refine their offerings to ensure they meet the changing needs of their workforce.
For more insights into making the workplace more human and personalizing employee benefits, stay tuned to "Getting Personal with Compt." If you're interested in sharing your experiences or learning more, connect with us on LinkedIn or reach out directly (Lauren@compt.io) to continue the conversation.
