As we enter the second full year of living with the coronavirus and its variants, the workforce landscape is evolving right along with it. In an attempt to provide some clarity, we’re pleased to provide our newest trends analysis, “The 6 Realities of 2022.” As employers and HR professionals work to manage the myriad of new responsibilities falling squarely on their shoulders, we hope this in-depth report provides the information required to face them head-on.
Reality 1 l Reality 2 l Reality 3 l Reality 4 l Reality 5 l Reality 6
Here is a snapshot of the report:
Reality #1: The workforce is not going back to a “next” normal, demanding new permanent ways of working.
For millions of people, the COVID-19 pandemic changed the place work held in their lives, and that change is likely permanent. Now that productivity has been proven, employees do not want to go back to “normal.” The demand for flexible working has and will continue to require employers to continuously reshape how we work, reorient necessary benefits to support it, and reimage employee engagement overall.
Reality #2: The resulting benefits of DE&I, which are broadening in scope, are mission-critical to business success. Period.
With diverse leadership resulting in higher profitability and inclusive decision-making yielding better results 87% of the time,1 DE&I’s impact on business is no longer up for debate. Diverse and inclusive cultures and teams are imperative for staying competitive in both attracting and retaining top talent. Businesses must demonstrate inclusion in their workplaces, and an inclusive benefits package is one of the most important ways to show you value all your employees.
Reality #3: Enhanced benefits grow in appeal and become more personalized as critical needs evolve.
Based on the evolving needs and expectations of the workforce when it comes to employer support businesses are feeling more pressure to not only offer enhanced benefits but ones that are custom fit to particular employees’ needs. In a more competitive job market, employers are focusing on demonstrating empathy, and understanding to support unique and thoughtful voluntary benefits across family coverage, caregiving, and financial wellness, just to name a few.
Reality #4: New workforce dynamics require HR departments to successfully manage and communicate continuous change.
Effective communication, often referred to as the “Last Mile Challenge” of successful change management, has become one of the most difficult tasks facing HR professionals. An organization's ability to effectively deliver benefits information to all employees is more important than ever for increased utilization, while the preferred means of communication continues to fragment. Understanding the new landscape for both communicating and supporting employees will require businesses to diversify their tools to succeed.
Reality #5: Employers are exploring creative strategies to manage increasing healthcare costs—trying to provide affordable, high-quality care for employees.
As more companies look for creative cost-savings strategies, working to ensure people are not over-insured, plans offering personalization are growing in popularity. Redesigning options and seeking partners that can provide access to a wider variety of plans give employers the ability to tailor offerings in a way that also minimizes costs. Rising costs and increased utilization are driving employers to find new ways to control costs while providing employees with affordable, high-quality care.
Reality #6: Mental health becomes a major, and most likely permanent, pillar of the public health conversation as the global pandemic marches on.
The loss of daily contact, grief, stress, finances, and ongoing family and health concerns will create a sustained impact on mental health, even when we think the pandemic is “over.” With the majority of the workforce reporting worsening mental health, this is not a topic employers can ignore or minimize. Mental health support and benefits, both on the job and at home, are now critical for employer-provided plans.
Where do we go from here?
Each organization is unique and we know these realities will have a different or stronger impact based on industry and size. That’s where we come in. MMA can support you in finding the right solutions for your specific business. Our risk and consulting teams review these shifts and offer targeted strategic support to help our clients successfully navigate these new realities.