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What’s In and Out for Employee Benefits in 2023

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Published On: January 11, 2023

Editor's Note: This article was first published on LinkedIn. ‘Less is more’ will be the employer mantra for 2023, and that’s not necessarily a bad thing. The pandemic and competitive labor market caused employers to overspend on benefits and compensation packages. Looking to cut costs while increasing productivity, employers will seek out the benefits that provide the most value to their workforce in 2023.

What’s In

Outsourcing Compliance. Keeping up with state and federal workplace laws is becoming a full-time job. From wage transparency to paid leave and reproductive health laws, employers will need an expert by their side in 2023. Your HR manager cannot be responsible for everything.

Data Analytics. What is the utilization? What are the outcomes? Who is using the benefit? Using data to drive strategy and decision-making will be top of mind for CFOs and HR this year as they look to retain employees and cut costs.

Caregiving Support. From childcare to eldercare, 73% of employees have caregiving responsibilities that take a toll on their finances, career, and mental health. Whether it is a solution like Homethrive or Wellthy, or adding additional paid leave for taking care of family members, caregiving will be one of the most popular benefits considered by employers in 2023.

Point Solutions for Chronic Conditions. Chronic conditions such as diabetes, cancer, and heart disease are the top driver for healthcare costs, accounting for 41% of total healthcare spend. These conditions can also be detrimental to the financial and mental health of an employee. Employers are becoming more educated on solutions that reduce the cost of care for chronic conditions, while improving the lives of their workforce. Examples of solutions include DiathriveSpecialty Care Management, and Gemcore.

Transparency in Healthcare. 2022 was overwhelmed with new laws around transparency in healthcare. The No Surprises Act went into effect, protecting insured individuals from surprise out-of-network bills. The Transparency in Coverage Rule required health plans to disclose the negotiated prices they pay facilities for services. The Consolidated Appropriations Act required brokers to disclose their commission to employers. In 2023, more requirements will go into effect and employers will take notice.

What’s Out

Open Enrollment Meetings. Zoomed out? Me too. Employees want information about benefits, just not in the way you have always provided it. Employees want a number they can call with questions and an easy way to view the information and changes. Share an easy-to-read slide deck, send reminders through Slack, and use a tool like Airbo or Perks to convey your benefits.

Multi-Year Agreements. Whether it’s for a gym membership, a cell phone, or a benefits vendor, no one likes a multi-year contract. In 2021 and 2022, I saw many vendors lose out on customers or ruin relationships because of their multi-year agreements. If you are concerned about losing customers, create a better product.

ID cards. Carriers have made a push for digital ID cards for years and employees are finally starting to accept life without them. Why now? First, I credit the pandemic and the increased utilization of digital wallets.  Second, large carriers like Cigna have made moves to discontinue physical ID cards. I expect more carriers to join this trend in 2023 to save on administrative costs.

Freebies and Reimbursement Benefits. I am talking about the catered lunches, gym reimbursements, home office reimbursements, free snacks, anniversary gifts, etc. The fun stuff. With companies looking to cut costs in 2023, I think many employers will be letting go of the perks that do not provide a clear ROI or value to employees. Jessica Du Bois is Vice President, Employee Benefits Consultant at Risk Strategies Company. For more information, please contact Jessica at [email protected] Looking for more exclusive content? Check out what's trending on the Mployer Advisor blog, or check out the final episode of Season 1 of "This Week in Benefits."


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Jessica Du Bois

Vice President and Employee Benefits Consultant, Risk Strategies Company

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