Employee benefit offerings to have on your radar in 2018

Abstract

Increasing employee engagement and improving productivity has become a major aspect of business. Health insurance continues to remain a high priority for employers due to rising premium rates. Since healthcare costs are expanding, employers are looking to include different innovative employee benefits, which will reduce their overall spending and, in return, be more attractive to employees.

Seventy-five percent of employers are considering reviewing their benefits packages to influence employee behavior, and are planning for personalized employee benefits. They are focusing more on healthcare benefits as employee healthcare comprises a major chunk of the cost. Understanding the needs of various employee demographics in organizations plays an important role when structuring benefits.

Studies suggest that employers should consider flextime, telecommuting, casual dress, job sharing, and flexible working arrangements, which are cost-effective methods to help employees attain a good work-life balance. Human resources (HR) departments are constantly trying to identify cost-effective, innovative approaches to keep their employees satisfied and productive.

Challenges faced by organizations with respect to employees’ financial stability

The global average medical inflation rate was 6.8 percent in 2017, and was expected to rise to 7.2 percent in 2018. Research shows that the total cost of healthcare per employee in 2017 was approximately $13,482; predictions were made that it would rise to $14,156 in 2018. Hence, employer focus has turned to health benefits and using different strategies to curb costs.