America's Benefit Specialist April 2023

NOTEWORTHY

Download a copy of the full report, which dives deeper into benefits, costs, and adoption, at www.ease.com. FORMAL LEAVE AND DISABILITY PROGRAMS BETTER PREPARED EMPLOYERS FOR SHIFTING WORKER NEEDS Workforce trends have evolved significantly over the past few years, as COVID-19, social upheaval and economic uncertainty have led to changes in what workers expect. A recent study found that 59% of U.S. employers didn’t feel fully prepared to meet their employees’ changing needs and expectations. However, employers with formal leave and disability-man agement programs felt more prepared to support these shifting employee needs. The study, Keeping Pace with Employee Expectations: The Role of Leave and Disability Management—conducted by an independent research and polling firm on behalf of The Standard—used data collected in 2018 and 2022 to mea sure how employers viewed their efforts to manage leave and disability. The employers with formal programs did see a rise in factors that signal a more satisfied workforce. Those factors included greater employee retention, stronger morale, high er productivity and lower absenteeism. Retention improved significantly among employers with formal programs in 2022. The number of employers with formal leave or disability programs reporting greater retention rose more than 25% since 2018. The research also shows that workers’ requests for reason able accommodations rose for most conditions, including chronic illnesses like heart disease and cancer. Time was the most typical adjustment provided by employers, as 75% said they modified a work schedule or granted leave. Brenda Smith, senior director of Workplace Possibilities at The Standard, said, “This finding doesn’t surprise me. During the pandemic, flexibility from employers emerged as key for U.S. workers. People were dealing with kids attending school from home and helping aging parents. Employees no longer view flexibility as a nice-to-have.” On the behavioral health front, the report shows that secrecy and stigma continue to be challenges. The research reveals a 32% increase since 2018 in employers that reported a stigma attached to people with mental health conditions. Seventy percent of employers said their greatest challenge in supporting employees with mental health issues was workers hiding their conditions. This was a slight increase from 2018. The study shows mixed findings on employers’ confidence in their ability to manage leave and disability. While confi dence improved since 2018, less than 50% of employers said they felt very confident about how their company managed absence and disability in 2022. However, employers with for mal programs were better positioned in this area.

SMALLEST BUSINESSES SEE BIGGEST MEDICAL PREMIUM INCREASES Ease, an HR and benefits software solution for small- and medium-sized businesses (SMBs), insurance brokers and insurance carriers, today released the 2023 SMB Benefits and Employee Insights Report. Now in its fourth year, this report centers on benefits cost and adoption trends for businesses with two to 250 employees nationwide. Drawing on anonymized data from 3.4 million employ ees and their 85,000 employers, the report continues to see medical premiums tick up. Individual premiums saw a 21% increase from 2018, and family premiums came in slightly under that at 18% over the same time period. That’s a $104 difference in individual premiums and a $231 difference in family premiums each month—or $1,248 and $2,772 per year—significant for any household. While the jump in average premiums from 2021 to 2022 f ell under the 6.5% rate of inflation, the smallest employer groups were dealt the hardest blow. Employers with only one to 10 employees saw an increase of 12% in average family-plan premiums. That’s nearly double the rate of inflation and the largest increase this segment experienced in the past four years. “Small businesses power the U.S., and the past three years have been anything but normal,” said David Reid, CEO and co-founder of Ease. “This report looks deeper into the benefits pressures these employers and employees face and shares data points to help make informed decisions for the coming year. By determining the right benefits mix, these small businesses can remain competitive. That’s where lifestyle benefits—perks that go beyond medical, dental, and vision—come into play.” When it comes to plan-type adoption, it’s no surprise HMOs and PPOs remain the most popular choice for em ployees. Though uptake of consumer-driven health plans remains a small slice of the pie, participation in high-deduct ible health plans has increased 68% year over year. Panning out, HDHPs typically combine with an HSA. Given the current state of the economy, households may be opting to use high er-deductible plans to save money on their monthly premi ums—in spite of the higher financial risk if a major medical event occurs, more money in their pockets each month seems like a safer bet. Non-medical voluntary benefits offer SMBs a unique way to meet the needs of their employees without wrecking their budgets. Must-haves like dental, vision and life top the list for SMB employees, but lifestyle benefits like financial wellness, legal services and pet insurance continue to gain steam. Vision coverage continues to see a decrease year-over-year in premium cost. Short-term disability saw the biggest jump from 2020 to 2022 at almost 12% ($2.75 per month, or $33 more annually).

20 ABS | benefitspecialistmagazine.com