4 Employee Benefit Trends of 2016 

 December 3, 2015

employee-benefits-trends

When you’re looking to be competitive in the talent market, there are some things you need to pay attention to. Industry trends in hiring, technology, innovation and even benefits are all things to be aware of when attracting new talent.

What makes your company stand out from the rest? More often than not, benefits take the cake, whether they are fringe or higher than average mandated benefits.

What are some employee benefits trends coming up in the new year? Let’s take a look.

1.     Healthcare Savings Account

A healthcare savings account (or HSA for short) gives employees with high deductibles the opportunity to save for the times when they would need to use those high deductibles in emergencies.

As you begin to adjust your new benefits plan to accommodate trends in the space, think about this: by offering a high-deductible healthcare plan at 50/50 coverage in combination with ancillary benefits and a great culture, you’ve got the recipe for great perks to add to your recruitment and retention strategies.

 

2.     Spousal coverage

Although it is great when companies offer their employees personal, spousal and family coverage, the changes with the ACA don’t require organizations to cover spouses.

If employee spouses have the ability to purchase insurance on their own, many organizations now are cutting back on their employee’s spousal benefitsTowers Watson found that of the percentage companies who have spousal surcharges on their insurance policies are expected to see a high rise over the next three years (from 32% to 61%). Kerry Hannon, Career and Retirement Expert, said:

“In a recent survey conducted by the National Business Group on Health, a membership group that advises large employers about health benefits, and the consulting firm Towers Watson, 20 percent of respondents said they now levy a surcharge of roughly $100 per month on wives who decide not to take advantage of their own employer’s insurance and instead opt for coverage through their husband’s policy.”

 

3.     Outcomes-based healthcare

Some companies are beginning to look at preventative care, and health screenings and incentives to help keep employees accountable for their health outcomes. This includes wellness programs; currently 36% of employers allow employees to use work time for physical activity.

Wellness programs may be a trend, but it’s a beneficial feature of modern healthcare plans. In fact, nearly half (45%) of small businesses with wellness programs include a wellness screening component to their healthcare insurance plans.

These wellness programs contribute to the outcomes-based healthcare by:

●      Lowering healthcare costs

●      Reducing absenteeism

●      Achieving higher employee productivity

●      Reducing workers’ compensation and disability-related costs

●      Reducing injuries

●      Improving employee morale and loyalty

Currently, 36% of employers allow employees to use work time for physical activity.

 

4.     Defined contribution 

Similar to the healthcare savings plan, defined contribution plans are ways for employees to save for their retirement, but also allows employers to control how much they put into these plans.

Employees put their own money into their healthcare savings accounts, but if they’re looking for more coverage than their employer can feasibly handle, they’re allowed to pay the remaining portion of the bill.

Joseph Berardo Jr., CEO of MagnaCare, said:

Defined contribution is the new frontier in this movement by further empowering employees to make decisions from a wider array of choices, including options to pay higher premiums for richer benefits or lower premiums for higher-deductible plans.”

If you’re in the running for a more robust benefits plan, you need to follow or exceed trends. Yes, some candidates will look at innovation, technology or creativity, but what will drive them to accept your offer versus that of your talent competitor is the quality of your benefits plan.

Your employees and your candidates want to know they’re being taken care of, so explore different solutions to your current healthcare plan or other aspects of your benefits to see what would be most attractive to your ideal candidates.