How to Navigate the Changing Economy and Employee Benefits

The tumultuous economy has had a direct impact on employee benefits. As an employer or Human Resource professional, it’s important to understand how your business can navigate these economic changes while still providing meaningful benefits for your employees. 

There are numerous different employee benefits available to employers. For example, many companies are now offering flexible spending accounts (FSA) and dependent care accounts (DCA) where employees can allocate pre-tax money and use it for various medical expenses throughout the year. Others are offering telemedicine services with no out of pocket cost, which allow employees to consult with doctors online without having to leave the comfort of their own home. Wellness programs that incentivize healthy behaviors like exercising and eating healthy foods are also growing in popularity. With increasing economic pressure, employees tend to take advantage of these types of money saving benefit options.

Benefits can improve employees’ overall quality of life. Comprehensive and affordable health insurance is essential, however other less tangible benefits such as paid vacation days or flexible hours and work location can help attract top talent and keep them engaged with their work over time. The current job market, and seemingly shrinking pool of available employees, has resulted in higher employer premium absorption, in an effort to recruit and retain employees. By taking an individualized approach when considering potential employee benefit offerings, employers are more likely to find solutions that truly meet the needs of everyone rather than trying to check off boxes on a list of standardized offerings, and predetermined premium allocation models, from outdated plans created years ago. 

Navigating the ever-changing economy isn't easy but with some careful consideration and research into potential offerings employers can create meaningful benefit packages tailored specifically for their teams' needs, while staying compliant with relevant regulations and laws along the way. By understanding what matters most to their workforce, employers can create unique packages which will help them attract and retain top talent. With thoughtful planning employers can ensure they are making smart decisions about their team's future success no matter what impact economic changes may have down the road.