Pandemic Turns Spotlight on Bedrock Benefits, Holistic Well-Being
FROM OUR FRIENDS AT BENEFITS PRO
The disruption of the pandemic is leading to a back-to-basics approach for the employee benefits landscape. That’s one of the key findings from The Hartford’s 2021 Future of Benefits Study. Mark Bernstein, National Account Executive for Employee Benefits at The Hartford, notes that the time of crisis has led to renewed attention on foundational, or bedrock, benefits.
“The last 17 months have led people to think very differently about their well-being and to protect themselves and their family from the unknown,” Bernstein says. As a result, employees, employers and broker partners have an increased interest in such benefits as life and disability insurance.
Bernstein sees several other trends that COVID-19 simply accelerated, including a more acute focus on mental wellness and mounting interest in voluntary benefits, as well as an increase in the types of paid time off (PTO) and more generous leaves of absence.
The Hartford found that 61% of the U.S. workforce is experiencing burnout at work. This shift disproportionately affected women and younger employees.
If gone unchecked, the insurance carrier warns that it could lead to more frequent unplanned work absences or injuries on the job. Employers and their broker partners can play an important role in combating the stigma around seeking mental health treatment and encouraging employees to seek the help they need.
One such conduit, of course, is employee assistance programs: 70% of employers now recognize employee mental health is a significant workplace issue, and 72% said stigma associated with mental illness prevents U.S. workers from seeking help.
“People have now embraced the fact that mental wellness is absolutely key,” Bernstein says. “There’s a real opening for brokers to help their clients become more strategic on that topic.”
INCREASINGLY POPULAR PRODUCT LINES
The Hartford study found that critical illness, accident and hospital indemnity were among the most newly selected product lines, by employees, during the pandemic. What’s particularly noteworthy is that 32% of the 46% of U.S. workers who selected hospital indemnity coverage in 2020 did so for the first time, which coincided with soaring hospitalizations to treat COVID-19. “That’s an incredible amount of penetration in a short period of time,” he observes.
75% of U.S. employers increased their paid time away from work programs beyond federal and state requirements. However, Bernstein says many U.S. workers are fearful of workplace repercussions, such as getting fired, laid off, skipped over for a promotion/raise, or reduced hours, if they take leave.
He sees employers embracing “unique, thoughtful and tailored ways to communicate benefits to employees, even more so than before.” Education and enrollment experiences have become increasingly digital, increasing the amount of on-demand content like webinars and virtual enrollment fairs. “It’s something that clients should expect from their brokers as they plan for the future,” he says. “Employers and brokers can lean on their insurance carrier partners to assist in making sure employees know what’s available to them.”
A FRESH LOOK FOR BROKERS
Having a strong broker partner has become more important than ever, Bernstein says, noting the need to structure programs that meet employees’ needs without draining employers’ coffers. One possible solution he sees is a baseline employer contribution to voluntary benefits. The best brokers understand how to satisfy the needs both employees and employers, he adds, and ask deep questions in their RFPs to assess carrier skillsets.
Moreover, he says brokers are becoming subject matter experts infrequently changing leave legislation, helping national employers implement equity across the various states.
Bernstein notes that the most forward-thinking broker partners have put a great deal of energy into understanding their clients’ return-to-work plans. They’re using this issue to make recommendations on structural benefit changes, as well as communicate and educate in ways that resonate most with employees.
This may take the form of story-driven content, which seeks to make the material not only come alive with a compelling anecdote or narrative but also be relevant to each employee. Bernstein says many brokers have embraced this and are hoping that their carrier partners can help them deliver on this strategy.
For instance, a story-driven campaign can show how accident benefits can be used to finance childcare, which he says is something that many families struggled with during these challenging times.
“This new world in a pandemic-driven environment is front and center for all of our brokers,” Bernstein notes.
