employee benefits trends for 2020

employee benefits trends for 2020 Is your benefits package meeting the needs of your employees? By: nancy Damato, rda benefit services

Regardless of the size of your company, your employees are your most valuable asset. And second only to payroll in terms of cost, the comprehensive benefit programs you offer are essential for attracting and retaining these employees. There are more challenges to consider now more than ever as you determine what to include in that benefits package: a multi-generational workforce, competition for talent, legislative changes, and, of course, rising health care costs.

According to a recent survey, some of the top new employee benefits for 2020 are:

• Financial Wellness Programs

• Mental Health Benefits

• Student Loan Debt Repayment Programs

• Paid Family Leave

Financial Wellness Programs

New research shows that businesses are losing $500 billion a year due to employee financial stress. The survey found that these employees usually spend at least 3 hours a week at work dealing with their personal finances, resulting in lost productivity as well. And interestingly enough, financial stress has been found at all income levels. Now employers are stepping up to assist employees with their finances through financial wellness programs, including salary-linked loans, as an employee benefit.

Mental Health Benefits

Many insurance carriers have enhanced the mental health benefits on their health plans as increased mental healthcare is linked to greater productivity and improved overall health. Online resources, in addition to in-person behavioral therapy, have increased the access to care. In addition, employees may not be aware that Employee Assistance Programs offered by their employer include mental health resources. The stigma associated with mental health issues does prevent some employees from getting help, but increased public awareness is helping to overcome this issue.

Student Loan Debt Repayment Programs

Employees are struggling with more than $1.5 trillion in student loan debt and more and more employers are offering solutions to help them manage this problem. Companies are using a variety of solutions to help employees reduce student debt, and there are many different service providers that offer programs to manage this valuable benefit.

Paid Family Leave

These benefits continue to expand, with more changes occurring in 2020. In 2019, employers with 30 or more employees became subject to the NJ Family Leave Act, providing up to 12 weeks of job-protected family leave. Plus, the new law expanded the definition of a “family member,” to include those beyond the immediate family. Starting July 1, 2020, the new law increases the paid family leave insurance program to 12 weeks and increases intermittent Family Leave Insurance (FLI) from 42 days to 56 days. Also, the FLI weekly benefit rate will increase to 85% of the employee’s average weekly wage, with a benefit cap of $859.

Communication is Key to the Success of Your Benefit Programs

It’s not enough just to offer a robust menu of benefits. Many employee benefit plans come with a wide variety of additional services as well as ways to make access to care easier — benefits such as preventive care, disease and sleep management, prenatal care, telemedicine, reimbursement for wellness activities, claims assistance and onsite seminars, to name a few. So, it is imperative that employees understand all the benefits that are available to them.

Companies are encouraged to establish a platform to educate employees about their benefit plans and all that is offered. Do you have technology in place that can be used as an educational tool to communicate all your employee benefits? Explaining insurance terminology, giving detailed information about the free wellness benefits available with the health insurance plans, using educational webinars and onsite benefit fairs, are a few examples.

Communicate with employees often during the year, not just during open enrollment, to ensure they are engaged with their benefits. Use a variety of communication methods and online tools to ensure you are reaching everyone. Your benefits broker can assist you with this process and provide additional benefit programs to enhance your core benefits package. And remember: it’s not too early to start taking a look at what is available.