As renewal approaches, what do employers need to know? Benefits and health care are in a state of constant change. The challenge: save more on benefits while still providing competitive programs that will help attract and retain talent. Here are four key midyear benefit trends employers should consider this renewal season:

Health Care Costs Trending Up… Again

It feels like déjà vu at this point. Health care costs have risen sharply over the past few years and will likely continue to rise. It is mission critical for employes to find ways to reign in these costs come renewal time. But frustrations abound:

• Employers feel they have limited options
• Traditional approaches like steerage and health care literacy have been exhausted
• Employers feel they may need to take more drastic measures like plan design or funding changes

While health care costs are unlikely to decline in the near (or far) future, there are ways employers can save more, especially if they work with an effective consultant. From impacting medical and pharmacy claims to innovative plan design strategies, leverage your broker partner to defy the trend. Don’t believe it’s possible? Our results beg to differ.

Paid Leave Impacts

Another midyear benefits trend to consider is the impact of paid leave policies. In response to the COVID-19 pandemic, many employers expanded their leave policies. However, in the past two years, many organizations have reverted to pre-pandemic levels. However, state legislation has thrown a wrench into the mix. Eleven states and the District of Columbia currently have laws (or legislation that will soon go into effect) that will impact more employers. Employers should ensure their policies are compliant.

If you aren’t subject to paid leave requirements, consider how you can leverage this category in your benefits strategy. Leave plays a critical role in supporting employee well-being and recruitment efforts. Paid leave can include:

• Medical leave: covering a worker’s own health condition
• Parental leave: covering bonding with a new child
• Caregiving leave: covering caring for a loved one’s health condition
• Safe leave: covering needs when a worker or their loved one is the victim of violence

As employers consider their 2025 benefits and talent strategy, consider benchmarking your leave practices against your peers. These benefits could be a differentiator.

Personalization of Benefits

Utilization has been a persistent challenge for employers. Many benefit programs rely on high utilization to generate a strong return on investment. Additionally, may employees seek packages with flexible offerings that help them afford current expenses and plan for the future.

Employers are responding by adding or improving employee benefits in the next year to better recruit and retain employees. A report by Lively, an HSA vendor, featured several key takeaways:

• 81% of organizations plan to enhance benefits for recruitment purposes
• 25% of organizations are focused on flexible benefits like savings accounts, wellness benefits and bonuses
• Employee feedback is the most trusted source of information for benefits decisions
• Providers are falling short on delivering strong member experience

Today’s workers have a wide range of needs. Personalized benefits models can empower workers to use their benefits however they want instead of having a one-size-fits-all plan. While some companies’ budgets may limit customization options, strategic investments can improve employee recruitment, satisfaction and retention.

Financial Wellness

A Bank of America Institute report found that more than half of employees feel financially unwell. Many are worried about inflation and the cost of living outpacing the growth of their paychecks. Today’s employees’ top financial goals were rated as:

1. Saving for retirement
2. Paying off credit card debt
3. Saving for unexpected expenses
4. Paying off a mortgage

To support these personal financial goals, employers are offering retirement planning resources and online tools to help educate and build good habits. Debt assistance also remains a priority for employers. This could include student loan assistance, matching 401(k) contributions. More broadly, employers are offering the following supportive benefits to increase financial wellness:

• Financial counseling
• Financial education
• Legal support for dept
• Online assessments and financial platforms

Financial wellness is a valuable investment in an organization’s workforce. Implementing a comprehensive financial wellness program is a step toward building a happier and healthier workplace for all.

Takeaways for Renewal Season

These midyear benefit trends reveal that employers face many of the same challenges that they have faced for several years. While rising costs are not new, and are unlikely to change, they highlight the need for a dynamic and responsive approach to benefits strategy. By containing cost, employers can create savings that allow them to invest in benefits enhancements that will continue to meet the increasingly diverse needs of today’s employees.

Not sure how to make those savings a reality? Take advantage of a no-risk savings assessment by following the link below.