Employee Benefits Trends for 2023: What Are the Future Trends?

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For many workers, 2022 has been a year defined by opportunity and anxiety. The Great Resignation saw many employees leave their current employer in search of better opportunities elsewhere. At the same time, rising costs of living, especially in healthcare, has workers struggling to balance their work and home responsibilities. As we’ve become settled into 2023, employers should familiarize themselves with employee benefits industry trends to guide their decision-making.

Improving Healthcare Affordability

Of all the employee benefits trends, health benefits that improve healthcare affordability have become a staple. A healthy workforce is the foundation of productivity, creativity, and a positive work culture. Employers who aren't offering health insurance are in the minority. Health insurance is the number one benefit offered with as many as 72% of businesses saying they offer health insurance, according to the Pulse of HR Survey.

There are several strategies that employers can use to improve healthcare affordability. In addition to a robust healthcare plan and virtual health care, providing employee health benefit accounts can maximize opportunities for employees to save on their healthcare expenses. Health benefit accounts also provide cost savings to you by helping you reduce your tax bill and control healthcare costs today and into the future.

Mental Health and Well-Being

Related to improving healthcare affordability is providing benefits that encourage improved mental health and well-being. 

Even before the pandemic, employee mental health benefits trends were gaining traction. As we move into the pandemic's prolonged aftermath, recruitment, retention, and productivity success will likely favor those employers who provide mental health benefits.

When workers are more emotionally, socially, and financially fit, they will be more engaged at work and contribute to an energetic, positive work environment that excels in creativity, problem-solving, and a can-do spirit. Consider offering support resources such as employee assistance programs (EAPs), comprehensive biometrics and lifestyle education programs, online resources, behavioral health education programs, and suicide awareness training for managers.

Remote/Hybrid Work Environments

Another way employees are seeking to improve their overall health and well-being is through finding a better balance between their work and home life.

Implementing a remote or hybrid workplace benefits employers, too. When executed thoughtfully and successfully, you can gain access to a larger talent pool when it's time to recruit new employees, expect higher levels of productivity from employees, and save money in everything from overhead costs to fewer sick days.

Personalized Benefits

Depending on your workforce, a one-size-fits-all benefits package may not yield the value for your employees that you are hoping to provide.

One strategy might be to offer an array of voluntary benefits, which are goods or services that are either fully or partially paid for by the employee, but at a group discounted rate made available by the employer. Examples typically include ancillary benefits that fall outside of traditional benefits packages such as ID theft protection, financial counseling, healthy lifestyle programs, public transportation passes, and supplemental insurance packages such as life, cancer, and even pet coverage.

Family-Friendly Benefits

Between daycare, healthcare, and enrichment programs, the costs of raising a child or caring for an elderly dependent represent a huge financial burden. Add to this the reality that many parents are working full-time, and the result is workers who are burned out, stressed out, and exhausted.

Paid parental leave, paid adoption leave, and surrogacy benefits are ways employers are extending family-friendly benefits. A dependent care flexible spending account (DCFSA) can help ease the burden of daycare or other ancillary care costs.

Savings and Retirement

Monetary concerns continue to headline employee benefits trends of 2023. Financial security, or lack of it, certainly contributed to the anxiety many Americans experienced during the pandemic and its continued ripple effect through the economy. As a result, prioritizing financial goals to improve financial wellness continues to receive much-needed attention from workers and their employers. It's a serious issue.

Financial wellness programs can play an important role in employee retention strategies, according to a September 2021 report by the Society for Human Resource Management (SHRM) and Morgan Stanley. Helping build savings for emergency funds, debt repayment, and retirement are critical elements to a competitive financial wellness program.

Diversity, Equity, and Inclusion (DEI) Efforts

While not a direct benefit in the traditional sense, today's diverse workforce will naturally gravitate to those organizations that are taking thoughtful actions toward creating an inclusive and equitable work environment.

Establishing a work structure that organizes itself around DEI is beneficial. There are tangible steps you can take within your business to demonstrate your commitment to DEI practices. These include vetting your recruitment and hiring strategies, providing DEI training classes for management, and providing holidays, benefits, and acknowledgments that support different sexual orientations, religious and cultural backgrounds, and marginalized communities.

Offer Your Employees the Benefits They Want in 2023

As a trusted HR provider, Paychex can help you put together an ideal package as well as provide ongoing, easy-to-use support that benefits you, your employees, and your business.

To learn more, call us directly at 800-319-1800 (reference code 6001) or visit  pages.paychex.com/IFA