With everything that went down in 2020, updating your company's health benefits plan may have been the last thing on your mind. However, employers now have more opportunities to prioritize their employees' success and address the changing health and financial trends.
Understanding the generational demographics plays a massive role in determining what to include in your benefits plan. This study by Paychex revealed that every generation values certain benefits more than others:
Baby Boomers: Salary level, health insurance, retirement plans
Gen X: 401(k) plan with matching contributions, job security, growth initiatives
Gen Y/Millennials: Paid time off, remote work arrangements, autonomy over benefits and schedules, wellness initiatives
It's clear that as the years go by, there will be an increasing demand for flexibility - both in benefits and work arrangements. The past year has proved that office spaces aren't a necessity anymore as the virtual workplace has more or less replaced traditional workplaces.
As the future workforce or Gen-Z has grown up in a wholly digital age, they will prefer a job that grants them heaps of flexibility, convenience, and benefits customization. Since most young adults are in good physical health, they probably won't have severe health or chronic conditions (meaning no high-cost prescriptions). Further, younger generations are putting off starting a family, if they even want one, simplifying their health coverage options. Finally, these kids will be highly tech-savvy and more open to change in technology-related areas.
Here are a few benefits that the younger workforce is looking for in a job in 2022:
Virtual care - After COVID-19, employees and job-seekers will prioritize their health, no matter their age. As the remote workplace continues to thrive, the days of gym memberships and onsite exercise rooms may be behind us and instead pave the way for telehealth. 40% of employees aged 18-24 value virtual care.
Mental health benefits - The pandemic may be in its final lap, but mental health issues continue to rise. 1 in 5 American adults expressed an unmet need related to mental healthcare. Several employers have taken notice and implemented changes to the mental health benefit offerings. Kaiser reported that 31% of businesses with at least 50 employees expanded accessibility to mental health services and telemedicine, 16% offered EAPs (employee assistance programs), and 12% saw their staff increase their usage of mental health services.
Flexible coverage and more benefits control - 65% of the modern workforce want health reimbursement arrangements like HSAs to buy health insurance of their choosing from the marketplace. In other words, they want more control over their insurance benefits.
Tech-savvy benefits administration - Gen Y and Gen Z appreciate technological advancements much more than their predecessors. Consider incorporating technology and AI into your benefits plan to alleviate the frustration of administering and applying for benefits.
However, there is still a gap between what employers and employees perceive regarding their company's ability to meet their healthcare needs and concerns (read more here). While almost 100% of large companies offer health benefits, only 56% of small businesses do so. This disparity is primarily due to the complexity and cost of providing a well-rounded benefits package to employees.
NY Small Health is an experienced commercial insurance broker for businesses in New York. The company offers free tools like employee portals and regularly-updated insurance materials to improve your team's access to expert benefits advice, simplify the enrollment process, and give you and your staff information on the go with full mobile access.
Learn more about how your small business can work with NY Small Health to offer competitive health benefits to your team.