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Employers and employees united in voluntary benefits offerings

On Behalf of | May 17, 2022 | Employment Law - Employer, Employment Law -- Employee |

A recent survey conducted by Aon, a professional services firm, reveals that during the open enrollment cycle for 2022, U.S. based employers in many different fields offered more employee benefits to employees. These benefits are being embraced by employees.

Reasons behind the increase in employment perks

The COVID-19 pandemic raised awareness about the necessity to prioritize employees’ health amid COVID and its serious hazards. Supplemental health insurance coverage for employees was seen as an urgent need and in demand. Further, many employers were dealing with high attrition rates. They needed to find ways to compete in the ever-changing labor market and entice and retain skilled employees.

Additional coverage options are the new trend

Seventy percent of employees eligible for benefits cited a greater likelihood of working and staying with a company that offers paid voluntary benefits. And companies are seemingly on board:

  • With growing employee demand for additional coverage options, last month there was a 41% increase in the number of employers that provided new or wide-ranging voluntary options.
  • The number of eligible employees rose 16% from last year to the present.
  • The ten most popular benefits, such as critical illness, accident, and hospital indemnity,  also increased by more than half. Other growing options range from student loan assistance to auto-home protections.

Enhanced mental health awareness

Increased awareness of mental health issues has many companies placing more of a focus on employees’ emotional well-being. One-fifth of employees have claimed a decline in mental health and many employers are prioritizing and implementing programs that address stress, anxiety, depression, and burnout.

As employers and employees enter a post-COVID “new normal,” reimagining benefits is an essential change for both parties. Gone are the days when salary or hourly wage with a sole priority. Employees and employers today are thinking outside the box in order to enhance the 21-century working experience.