The new year is nearly here, which means it’s time to review the benefits your company offers its employees. Planning benefits for 2021 is particularly challenging, given the unknowns posed by the ongoing COVID-19 pandemic. However, if you do your job right, new benefit offerings will lead to more satisfied employees, easier recruitment of new employees, and noticeable benefits cost savings.
What Do Your Employees Want?
The AICPA and The Harris Poll surveyed more than 2,000 employees. They found that the most valued benefits among American workers were health insurance and 401(k) matching, each highly valued by 56% of the workforce. Paid time off was the next on the list for 33% of workers, while 31% sought pension plans and 21% wanted flexible work hours.
It’s imperative that you offer these five benefits to your employees first—only then should you consider adding other benefits as your budget allows.
How Does COVID-19 Affect Your 2021 Benefits Packages?
Although the distribution of the COVID-19 vaccine is underway, the country is still dealing with the effects of this global crisis. Going into 2021, you need to consider how COVID-19 affects the benefits you offer.
Interestingly, many employers benefit from lower health plan costs as workers are deferring or canceling elective care and procedures. However, these gains are likely to be short-term; employees will eventually revisit those delayed procedures, and the costs will mount for COVID-19 testing, treatment, and vaccines.
Other Changes to Consider
When reviewing the benefits you offer in 2021, consider the findings from Mercer’s 2020 Global COVID-19 Survey. This survey of more than 8,000 companies found that employers are considering the following changes in benefits for the coming year:
- Expanding virtual care and telemedicine (considered by 32% of employers surveyed)
- Sharing more health plan costs with employees (20%)
- Adding voluntary benefits to fill gaps without adding cost (16%)
- Reviewing retirement plans and possibly reducing plan contributions (15%)
- Better managing high-cost and specialty pharmacy claims (13%)Benefits
- Soliciting bids from multiple health plans and pharmacy vendors (10%)
- Changing plans to narrow networks of high-value providers (9%)
The reality is that the spread of COVID-19 has changed the way employees work and use various services. This presents a unique opportunity for you to revisit the core components of your company’s benefits packages.
Let CBR Help You Review Your Employee Benefits for 2021
Creative Business Resources has provided employee benefits packages to Arizona businesses for more than 22 years. We pride ourselves in providing solutions that help businesses work more efficiently, save time and money, and recruit superior talent. Thanks to our group insurance buying power, we can help your business fight rising premiums—and provide more valuable benefits to your employees.
Contact CBR today to learn more about changes in benefits for 2021!