L&T Blog

(Part 2) A Deep Dive into 2023’s Critical Employee Health and Benefits Trends

March 13, 2023

By Elise Thorpe

As benefit consultants, our role is to predict and respond to employee benefit trends and employee expectations so we can offer a variety of solutions to support the needs of our clients’ people, HR teams, and businesses.

We have identified these trends which represent three major storylines we expect to see in 2023:

·        Shifting workforce expectations

·        Mental and behavioral health needs

·        Changes in healthcare economics.

We explore the second trend, mental and behavioral health needs, in detail below. Check out Part 1 of this blog series, where Elise Thorpe discusses the first trend - shifting workforce expectations.

Mental Health and Behavioral Needs

Another significant trend among today’s changing relationship between employer and employee is the latter’s expectation of holistic well-being.

When Gallup asked employees what they look for most in an employer they found that all generations rank “the organization cares about employees’ well-being” in their top three criteria.

For Millennials and Generation Z, well-being is their No. 1 workplace want.

By 2024, it’s projected that 60% of healthcare spending will go toward improving health and well-being.  

Employee well-being has expanded beyond the physical, broadening its focus to a focus on holistic wellness areas including emotional, financial, social, career, community and purpose.

Prioritizing Mental Health

Many companies are redefining their approach to wellness by prioritizing mental health as an essential element of total well-being.

Seventy percent of employers state mental health is the most important benefit beyond traditional health insurance. In response, 23% of employers added new mental health benefits in the past year.

In addition, 67% of employers plan to offer enhanced employee assistance programs this year and 15% plan to make behavioral healthcare more affordable.

Mental health has essentially become the endemic that was created by the pandemic. It is now a major, and most likely permanent, pillar of the public health conversation.

It will be critical for organizations to raise awareness, share mental health resources, reduce the stigma surrounding it and encourage people to get help when needed.

Beyond the Basic Benefits Package

As employers face ongoing challenges with talent retention and acquisition, they must look beyond a standard benefits package to attract the best talent.

Today’s workforce is demanding more from employers, including a more empathetic and inclusive culture, growth and purpose-driven opportunities and robust resources to manage mental health and well-being.

Employers must navigate these expectations in the market along with ever-evolving economic changes in the healthcare industry that place added challenges and pressures to remaining competitive in the marketplace.

The team at Lovitt & Touché can help guide your business through this new normal and develop a cost-effective benefits package and talent attraction strategy that meets your goals. Learn more.

Don't forget to check out Part 1 of this blog series!