Rachael Tay
Freedom of choice in employee benefits The world of employee benefits has been gradually changing over the last few years, but like many aspects of corporate life, the pace of change has been accelerated by the impact of COVID-19
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Employee Benefits
vents over the past year have not only shifted where and how we work but also caused employers and employees alike to rethink the importance and relevance of employee benefits. Employers may expect lower premiums for employee medical insurance but that lower-than-average medical trend rate would correct once deferred or elective medical treatments are sought and lifestyle changes lead to new health risks. As the physical and mental impacts of the COVID-19 pandemic continue to reveal themselves, employees are increasingly looking for employee benefits that go beyond medical to cover “wellcare” – rather than just sick care. In addition, employees are looking for opportunities to personalize the benefits offered to them. Taking these forces and factors into account, HR practitioners must be thinking about their employee benefits offering and how they can meet the needs of
current and future employees.
The importance of choice
Traditionally, most organizations have tended to “prescribe” benefits packages for their employees on a company-wide compulsory basis. Benefit levels are decided by referencing market or industry norms. Save for differing local or regional practices, this one-size-all approach is often the norm across organizations. However, progressive employers have started to see the benefit of letting
employees select their own benefits – particularly as employee expectations are often influenced by the wellpublicized behavior of the global tech giants in offering employees a more holistic approach to their health and well-being. COVID-19 is also further driving the move towards a more flexible approach to employee benefits by highlighting many changes in preferences and lifestyle choices, as well as the whole context of workplace culture and practices. This has therefore further APRIL 2021 |
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