Benefits Corner

How Open Enrollment Boosts Financial Health in Shaky Times

Submitted by Shane Pennington, Regional Sales Executive, Educational Benefits, Inc.

Pop quiz for U.S. open enrollment season: What percentage of your total compensation is due to employee benefits? Since most Americans are so focused on salary, you might not realize it is a whopping 31%, according to the Bureau of Labor Statistics.

Indeed, the Covid-19 era seems to have forced us into considering our benefits more closely. Sixty percent of people say the pandemic has made them think more carefully about benefits, and 68% say benefits will play a bigger role in future job selection, according to a new survey by financial services company Voya Financial.

This is especially important since the benefits landscape is shifting so rapidly in the era of the Great Resignation. With labor in short supply, many companies are revising the array of benefits they offer, both to hold onto their current employees and to entice new ones.

Just a few examples of benefits offerings that are at record highs, according to the 2020 Benefits Survey from the Society for Human Resource Management (SHRM): Critical illness insurance (48%), long-term care insurance (39%), in vitro fertilization (28%) and mental health services (85%).

“Employees tend to focus just on medical coverage, but there are a whole range of additional benefits which can really protect you – and which are not that expensive when purchased through your employer," says Mona Zielke, Voya’s senior vice president of enterprise client solutions.

By Chris Taylor (Rueters)