As most open enrollment periods come to a close, reflecting on how the OE process went and how the benefits offered resonated with your employees this year leads to the challenge of determining which products to provide next year. Striking a balance between meeting the diverse benefit preferences of a multigenerational workforce and selecting the most cost-effective options for both parties can be a complex task.

According to Mercer’s report, U.S. employers can expect medical plan costs per employee to be 6.5 percent higher on average in 2024, a significant jump from the 5.6 percent increase they had predicted for 2023. The National Health Expenditure (NHE) in the US “grew 2.7% to $4.3 trillion in 2021, which is $12,914 per person, and accounted for 18.3% of Gross Domestic Product (GDP)”. While some employers might increase employee deductibles to offset these costs, more than half of employees say they would likely accept a job offer with slightly lower compensation but a more robust benefits package. As costs rise for employers, they also rise for employees, and more than 72 million American adults carry ongoing medical debt. 50% of Americans report high levels of anxiety about health care costs exceeding what their insurance covers. Anxiety about their benefits can affect employees’ mental health, and in turn, affect productivity and efficiency at work. Although benefits costs are rising, it’s more important than ever to offer benefits that properly support your workforce to promote all around workplace wellbeing.

PlanSource’s 2023 Benefit Trends Report highlights the necessity for employers to have a competitive and total benefit offering to increase employee retention and overall employee satisfaction. A comprehensive benefits package goes beyond the traditional medical, dental, and vision benefits. Let’s look at the other coverage offerings that are a critical supplement to traditional coverage and why it’s important for employers to offer them:

• Disability Insurance: 26% of consumers say they would withdraw from their retirement accounts, incurring penalties, if the primary wage earner became disabled. Disability insurance is essential, as it helps to ensure that employees can still meet their financial obligations if their ability to earn income is compromised.
• Life Insurance: 41% of adults feel they don’t have enough Life Insurance. Employer-sponsored life insurance provides a solid foundation for a household’s financial protection. Being able to provide for their family’s future in the event of a tragedy can offer your employees a huge sigh of relief.
• Accident Insurance: Accident insurance is among the most valued voluntary benefits by employees, especially those with children under age 18.
• Critical Illness Insurance: This year there are more late-stage disease diagnoses than ever. Offering critical illness insurance adds additional financial security for employees, allowing them to focus on recovery without worrying about financial burdens.
• Hospital Indemnity Insurance: An average three day stay at the hospital is over $30,000. When a covered person requires a stay in the hospital, this benefit can be crucial to help with a variety of hospitalization-related expenses that aren’t covered by medical insurance — from co-pays and deductibles to groceries and childcare.
• Pet Insurance: Every six seconds a pet owner is faced with a vet bill of $1,000 or more. Pets are beloved members of many families, and their health and wellbeing are essential. Pet insurance ensures that employees can provide the best care for their pets without breaking the bank.
• Legal Insurance: According to the Clio 2023 Legal Trends Report, the average attorney hourly rate is $327.00 in 2023. Offering Legal insurance helps employees access legal services and support when dealing with issues like family law matters, estate planning, or unexpected legal disputes, and can be invaluable for covering legal expenses.

As PlanSource’s 2023 Benefits Report shows, employers are investing a lot financially into offering a comprehensive benefits plan for their employees but face the challenge of how to ensure their employees understand the benefits and actually use them. According to The Hartford’s 2023 Benefits Report, 42% of American workers require additional resources to gain a better understanding of their benefits. Moreover, there is a pressing need to simplify the language and information surrounding benefits for enhanced employee comprehension. To assist employees in identifying benefits that align with their individual lifestyles, the use of storytelling can be instrumental. By showcasing how these benefits are pertinent to each employee’s unique circumstances, you can encourage them to reassess their benefit selections annually, adapting to changes in their life situation. Workers who lack understanding of, and consequently do not utilize their benefits are more likely to experience stress related to financial uncertainty. For some, this stress can manifest into negatively affecting work productivity more than their mental or physical well-being.

As outlined in MetLife’s 2023 Employee Benefits Trend Study, a comprehensive benefits package plays a pivotal role in achieving work-life balance and job satisfaction. It also holds the potential to enhance employee engagement and overall productivity. When employees take the time to grasp and actively engage in discussions about their benefits, they enhance their comprehension, make more informed decisions, reduce anxiety, and ultimately boost their overall happiness.

Disability, life and voluntary benefits insurance are an added financial protection that employees need now more than ever, and employers too. Job stress leads to a costly $300 billion for US companies each year as a result of accidents, absenteeism, employee turnover, reduced productivity, direct medical, legal and insurance costs as well as workers compensation awards. Addressing the difficulties associated with rising benefits costs, providing a comprehensive range of products, and enhancing benefit engagement and utilization becomes easier when you work with a trusted benefit broker and benefits engagement and administration platform that can help guide you.

PlanSource collaborates with 18 of the leading US insurance carriers to deliver the optimal benefits package, providing your employees with essential financial protection in case of unexpected disability, accident or illness while ensuring a top-tier benefits experience for you and your employees. Our partners include Aetna, Aflac, Allstate Benefits, Ameritas, Cigna, Guardian, Lincoln Financial Group, MetLife, Mutual of Omaha, New York Life, Prudential, Reliance Matrix, Sun Life, The Hartford, The Standard, UnitedHealthcare, Unum and Voya. PlanSource also offers decision support and personalized employee engagement capabilities to increase benefits understanding and utilization of benefits with employees.

Fill out the form to have a member of our team contact you to provide more information on how to enable a year-round benefits and engagement strategy through our insurance carrier partnerships and key features.