5 Employee Benefit Trends to Engage Your Team in 2023
January 12, 2023 | Winston
Although open enrollment has ended for most HR and benefits teams, it’s always a good idea to keep up with the top trends to help inspire and engage your employees. Now that 2023 is here, we’re diving into the five we expect to see, some of which have already started making waves in the benefits industry.
1. Holistic Leave for Caregivers
Since 2020, employees have been demanding more flexibility in their schedules, particularly workers who also care for elderly relatives or young children. Employers who didn’t offer this kind of flexibility and tried to uphold rigid schedules likely saw more employees leave, searching for positions that could accommodate their personal needs. As a result, many companies have implemented more holistic leave for caregivers to appeal to talented employees with caregiving responsibilities. Some examples of holistic leave policies are unlimited PTO, sabbaticals for long-term employees, or build-your-own schedule opportunities.
2. Financial Spending Accounts (FSA)
While FSAs are no new concept, employers are increasing the contributions for their employees’ Health FSAs following the IRS increasing the allotted amount for qualified medical expenses to $3,050 at the start of this year. Offering your employees FSAs can help ease financial stress due to the rising U.S. medical costs. These accounts cover medical expenses such as vision work, dental work, co-pays, certain over-the-counter medicines, and prescribed medications. The funds in each account are up to the employees to use where they need them throughout the year.
3. Lifestyle Spending Accounts (LSA)
Building off the idea of benefits to help employees afford everyday expenses, LSAs can help further promote employee wellness by providing funds for lifestyle expenses to promote healthy well-being that programs like FSAs cannot offer. In this case, employers decide how much funds each employee will have access to, and are preferred by some employees who have a more holistic approach to their health. Employees can use LSAs to fund gym memberships, nutritional supplements, and even groceries.
4. Family Planning Benefits
According to the World Economic Forum, fertility rates have been declining steadily for the past seventy years. This can be attributed to social and economic factors; however, some employers have recently started implementing innovative family planning benefits in response to these findings and to attract and retain some of their female talents. Some examples of these benefits include infertility diagnosis, in-vitro fertilization (IVF), egg freezing, etc. For female employees who have dedicated years to a company, these benefits can increase company loyalty and engagement by assuring them that their leadership team cares about their professional and personal happiness.
5. Pet-Related Benefits
Employee Benefits News (EBN) reports that 45% of pet owners will spend the same or more on an animal’s healthcare than on their own. Employers are meeting their workers in the middle by offering pet insurance benefits and even pet-related PTO to accommodate workers who need to take time off to care for a sick pet. Pet benefits have been rising in popularity over the past few years and are a simple and effective way to get your company to stand out and attract high-quality talent with benefits your competitors may not be offering.
As the benefits landscape evolves, keep these trends in mind as you strategize for your next open enrollment and consider if any are suitable for engaging and retaining your employees.
Our team at Winston is here to be your partner to navigate and adjust to the needs of today’s workforce. Learn more about our services and contact us to help streamline your benefits process, saving you time and money in the new year!
Disclaimer: This content is strictly informational and should not be used as specific advice on insurance products, legal, accounting, and/or tax related matters. Insureds should always contact the appropriate licensed professional for their insurance, legal, accounting, or tax needs.