We’re in a transitional moment for the future of work, as employees rethink what they want from their careers and employers. As a result, HR and company leaders are navigating changing priorities in attracting and retaining talented employees. These include new hiring challenges like broad talent loss and the shift to remote work.
It’s harder than ever to find or hold onto talent. According to research, 88% of companies are experiencing higher turnover than normal.1 Turnover is a threat to both productivity and profitability, as the cost of replacing an employee can range from one-half to double the position’s annual salary.2
Emerging employee benefit trends
More than ever, benefits are a differentiator. Research on employee benefit trends reveals that they are the #2 reason to look for a new job.3 Savvy employers are recognizing the importance of employee benefits to productivity and the bottom line, and they are enhancing or expanding their offerings. Two-thirds of employers are not pushing additional healthcare costs onto employees, while over 50% are providing or plan to provide expanded mental health resources.4 Another recent survey reveals that 60% of companies plan to bolster health and dental benefits to stay competitive.5
Employee benefit trends like these can create urgency, especially for employers still undecided on benefit enhancement. Finding the right balance between coverage and cost isn’t always easy. Here is what employers and advisers should know about employee benefit trends—and how they can provide what talent is seeking while managing health plan costs.
Attracting and retaining talented employees
While there are specific needs and expectations among some employee groups—like executives, for example—there are some foundational employee benefit trends that employers should broadly know and address. These include:
Changes in primary healthcare plans. Many employers start with one-size-fits-all primary healthcare plans. Plan changes and cost-shifting, though, have increased employees’ share of out-of-pocket healthcare spending and driven up average deductible costs.
High OOP driving financial strain. Paired with high inflation, financial strain has employees feeling the pinch. In fact, the average family premium has increased 47% since 2011 and 22% since 2016.6
Need for effective mental health care. The last two years have thrust mental health into the spotlight—and underscored the importance of effective care and support for mental health and well-being. Traditional primary healthcare plans and employee assistance programs (EAPs) often lack the coverage and resources employees need to access effective care. With 50% of employees claiming mental health as a reason for leaving their jobs,7 addressing employee well-being is good for both talent and business.
With an eye to health plan costs, many employers and advisers are turning to flexible supplemental health insurance benefits to address coverage voids. Plans like ArmadaCare’s supplemental health insurance benefits can be a versatile, cost-effective way to strengthen basic primary healthcare plans to meet employee benefit trends. They can be layered on to serve specific needs, like:
- Reducing financial strain from high out-of-pocket exposures
- Boosting benefits and enhancing compensation packages for hard-to-recruit or retain positions, like technical skill positions, nurses, IT staff and more
- Enhancing or expanding mental health and well-being coverage with robust, effective support and much more
Learn more about how ArmadaCare’s range of plans can help provide an edge in attracting and retaining talented employees.
ArmadaCare’s supplemental health insurance policies are underwritten by Sirius America Insurance Company and Transamerica Premier Life Insurance Company. Insurance plans and coverages vary by state. Please contact us to confirm state availability.
 PwC, 2021
 Gallup, 2019
 PwC, 2021
 BenefitsPro, 2020
 Care.com, 2021
 KFF, 2021
 HRD, 2022