How The Pandemic Changed Employee Benefits For The Better

Mental and physical well-being benefits are now a top consideration

In year three of the Covid-19 pandemic, signs of normality are starting to emerge. HR professionals are preparing their teams for either part-time or full-time return to workplaces, mask mandates are easing, and activities we all took for granted are resuming (in-person meetings anyone?)

However, there are lessons and takeaways from the pandemic that have forever changed the way our world works and that’s also the case with employee benefits. Just a few years ago, many benefits outside of medical, dental, and vision were often treated as a “nice to have” or a perk rather than a core part of a total rewards package.  It’s clear, however, that this has shifted greatly as employees’ needs have changed and they now demand more of their employers.
 

At the end of 2021, Sequoia surveyed more than 400 companies in the United States on a variety of issues regarding the New Workplace and found that 86% of respondents have implemented new strategies to address their employees’ overall well-being or plan to do so in 2022. Even more impressive, 98% of respondents reported their company is currently expanding (or planning to expand) mental health resources. Nearly two-thirds (60%) of respondents reported expanding physical health programs.

These are tremendous statistics that illustrate that mental and physical well-being benefits are now a top consideration for companies responding to the needs of their people. And while the pandemic may have served as the tipping point, these changes have been a long time coming. As far back as 2019, Edelman’s annual trust barometer revealed “my employer” as the most trusted institution ahead of media, government, and even NGOs. It’s a two-way street, as companies spend an estimated 70% of their budget on all their people.

Expectations Have Changed

When many businesses went remote in 2020, the lines between work life and home life often blurred with employees answering emails or taking calls outside of traditional office hours. With this, more expansive work/life integration came greater expectations from both employer and employee. 

The demand is there, the competition is doing it and there are new expectations. A common challenge is where to get started. Today, there are more benefits vendors than ever before. Nothing is off the table. Employers are exploring everything from caregiving to mindfulness practices and traditional benefits that have become “on-demand” like therapy.

Employers can’t possibly offer every possible benefit, but they can bundle well-being benefits in ways that make sense for their workforce. Whether you’re a startup or an enterprise company with global reach, your workforce is both diversifying and expecting more from their workplaces and they themselves have leaned into meet productivity needs.

In order to retain top talent, leadership must consider how the lives of employees have changed during the pandemic. Sequoia’s Wellbeing data shows that 11% of companies offer childcare stipends and 5% offer eldercare benefits. 

Between uncertainty around school closures, when the next wave of a highly communicable disease hits and more workers caring for elderly parents and relatives, employers are expected to step up. That could mean re-examining benefits budget allocation to allow for more caregiving benefits or it could be considering and implementing changes to remote work policies that reflect the reality workers are living in.

Addressing Burnout

Finally, the elephant in the room at companies of all sizes and in all industries is burnout. Great companies have always gotten incredible productivity out of their teams, but this pandemic exposed that even some of the best companies are vulnerable to the dangers of burnout. When the balance of work-home integration becomes unstable, burnout can creep in quickly. The consequences of burnout cannot be understated and can include everything from lower productivity, presenteeism, and even resignation.

There are things HR leaders can do in concert with company leadership to get ahead of this insidious phenomenon. Some policies to consider from our findings include increasing (47%) or automatic enrollment and regular communication of well-being and mental health benefits, designated “no meetings” days (30%), policies around non-office hours work communications, and even flexible, or enhanced time-off policies (72%). Many of these are no-cost or low-cost steps that can go a long way toward keeping employees engaged, and productive.

The Pandemic That Changed Business

The lasting permanent effects of the pandemic likely won’t be known for years. What we do know already is that workers are more mindful of their relationship with their employers and what they expect from them than ever before. The commute no longer serves as bookend to the workday. Employees have invited companies into their lives outside of the physical office space, first out of necessity and now because of changing expectations. As innovative and strategic benefits leaders, it is our job to ensure this delicate balance is fair, equitable, and agreeable to both business leaders, and employees.

Kaleana Quibell is the Vice President of Wellbeing and Platform Partners at Sequoia, where she helps clients and employees to come through for the various needs of their people. She has more than 10 years of experience in the Total Rewards sector, with a background in recruiting and onboarding, benefits and human resources, and employee well-being program design. Connect Kaleana Quibell