An Employee Benefits Market Pulse Survey asked more than 200 brokers for their views on their clients’ most pressing challenges this year. Let us help you with these challenges!
Health care costs continue to increase as utilization rebounds to pre-pandemic levels, outpacing the consumer price index. Inflation is also causing health care costs to rise, which will likely drive up costs.
Employers are urgently searching for solutions to manage their growing costs and address the long-term impacts of these increases on their organizations. Planning and embracing bold strategies may be the only way to help employers control these costs and keep employees healthy.
Attracting and retaining employees
Employees have had leverage in negotiations to demand higher pay, competitive benefits and more flexibility—but this may change due to a potential recession. Many employers have slowed or frozen hiring, with some even conducting layoffs. Attraction and retention remain major challenges for employers and are likely to continue through 2023.
Employers that offer competitive compensation and benefits, flexibility and meaningful opportunities for career growth and development are likely to gain a leg up on the competition.
Offering competitive benefits packages
Offering competitive benefits packages emerged as a top challenge for employers for the first time, displacing compliance challenges. Last year, employers responded in various ways to lessen inflation’s impact on employees, such as reevaluating employee benefits, offering remote and hybrid work schedules, and increasing employee compensation.
With a recession looming, employers are likely struggling to design and offer competitive benefits packages that meet employees’ needs and wants while remaining affordable. In 2023, organizations can benefit by evaluating their benefits packages to focus on the long term and what matters most to employees.
Contact the Employee Benefits Department at Consolidated Insurance + Risk Management today to help mitigate all of these challenges.