The pandemic has affected every organization and every area of business, including healthcare. With its creeping, pervasive reach, COVID-19 has turned on its head the way we work — and has rendered less certain even the most well-construed and crafted business strategies. Indeed, the global pandemic has trained the spotlight on where we are broken – healthcare, the U.S. infrastructure, etc. – and the glare can be unforgiving.
But that’s not necessarily a bad thing. Disruption – unprecedented disruption, at that – is best viewed through the prism of opportunity. But that requires action, for one thing is true: without care, employees can’t work.
And such care must recognize the increased strain the pandemic has put on work and life — and their ever-elusive balance. People are having all kinds of issues, including with childcare, mental health, senior care benefits, etc.
Further, such care must ultimately derive from a clear-eyed look at the employee benefits you’re offering, and why. That’s particularly crucial during a time in which there appears to be some Grand Awakening in terms of how people want to make a living and form whom they want to work. So, a forward-thinking healthcare benefits plan could give you a competitive edge when it comes to attracting and retaining talent.
Rethinking healthcare benefits for a post-pandemic world is a must. Let’s discuss the issue further.
Broadening and Changing Benefits
According to the Harvard Business Review, the pandemic has done damage in areas including employee retention, productivity, attendance, and mental health. So, it’s no surprise that 98% of employers it questioned reported plans to grow at least one employee benefit or offer a new one. In the mix were child and senior care benefits, flextime, and more mental health assistance.
What’s the Outlook for Health Programs?
Mercer has a venerable annual survey that examines where things are headed in terms of healthcare benefits cost and plan design, and how organizations are handling costs while supporting their people. Among the findings were issues having to do with:
- Healthcare costs. Employers expect an increase in such costs this year of 4.4%. That’s less than the 6.3% hike last year, although factors such as inflation could keep healthcare costs increasing.
- Recruit and retain. It’s an employee’s market, but one way you can separate yourself from the competition is through generous healthcare benefits. That could be a major reason why employees in large part have not been asked to absorb more of the cost of their care.
- Health disparities. The next three to five years will see more of an emphasis on health equity and the aspects of society that help determine health. That’s the consensus of half of employers with at least 500 employees, and two-thirds of those with at least 20,000 employees.
- Behavioral health. All employers who had at least 500 employees said they were going to establish or enlarge programs to boost access to behavioral health programs.
- Virtual healthcare. During a time when scores of employees are working from home, organizations are embracing virtual health care as a means of heightening access with no extra cost. The numbers bear that out: after years of being stuck on around 9%, telemedicine use rose to 15 percent in 2020 and is on track to continue to increase.
It’s only smart, and the right thing to do, to rethink healthcare benefits for a post-pandemic world. You should act swiftly to help your people care for themselves and others, which will have the added benefit of improving their performance. It’s always good when everyone wins, and besides, you don’t want to get caught flat footed. If you need help getting things in place, the consultant Mercer can handle it.
