The new year is a time when we all start strategizing for success and reflecting on last year’s accomplishments. This also means trying to anticipate what will matter in 2022.
This will most likely mean planning ahead by looking at current trends, predicting which technologies or tactics might become major players in the year ahead, and an understanding about what employees may want in their benefit packages.
We’ve broken down some key trends and predictions so you can prepare accordingly:
Embracing Digital Transformation
Surprisingly, 63% of employers are still using non-integrated multiple HR tech systems.
HR systems have evolved from simply managing enrolments to a truly simplified and automated benefits shopping experience with integrated decision support and personalization. With Ben’s new software, employees can easily find the information they need in one place – saving time that would otherwise be spent scrolling through different screens or looking for specific data.
More and more organizations will be modernizing their benefits technology this year to ensure it has the best features and integrations, with not only HCM or payroll platforms but also carriers. Around 50% of companies plan on spending more money on HR tech by 2022 due to the challenges they face today. A modernized ben admin solution isn’t just “a nice-to have”, but rather an essential need instead!
HR professionals need new, modernized tools that will fully support their tasks. These benefits-as-a-service (BaaS) solutions offer an all-inclusive employee experience with real time integrations into company systems. Add in APIs for data access on the fly, thereby cutting down significantly on paperwork while still providing seamless coverage from one device or platform.
The future of benefits is now in a world where employees and employers can more easily connect with each other than ever before. The modernization efforts will not only affect those at the reins, but also technology providers who want to stay competitive by providing their own unique services or integrations through APIs (application programming interfaces). This process takes time – it might be worth looking into if your current provider isn’t working on this by 2022 when they could potentially get left behind!
The Big Data Trend Is Not Only Here; It’s Here to Stay
The future of data visualization is here! With so much information at our fingertips, it can be overwhelming to know what metrics are important and how they relate to the business. We predict that this ongoing trend will lead us towards new tools for visualizing employee or benefit related Big Data in 2022, bringing more ease when making decisions based off these findings.
HR leaders recognize there’s value with all types of info available, but reporting takes time. Between organizing then analyzing – which leads them into deciding upon an action – oftentimes without enough knowledge about specific details.
The use of data visualization tools is a great way to automate the process and present information in digestible form. Outside of reporting, big data has also driven many AI/ML innovations that can reduce costs for decision support as well as other inefficient practices within organizations.
What Effect Has the Great Resignation Had On HR?
HR teams are taking on an even greater load of work as they attempt to retain talent in the face of continuing mass resignations. HR teams are struggling to keep up with the recent wave of resignations.
In October 2021, there were 5.9 million total separations -including quits, layoffs and discharges. Coupled with this, they are spread even more thinly with having to handle an influx of new hires and administration work.
The Great Resignation continues its devastating effect on all aspects of the workforce, especially HR. To relieve the extra burden that HR staff must work with, many companies are turning to outsourcing for help. With best-in-class benefits administration service providers running things smoothly and efficiently on behalf of your company, you can focus on more pressing matters such as strategy development or engagement initiatives. It becomes possible for these leaders in human resources management to put out increased fires rather then get bogged down day after day with tedious tasks.
Enter: Generation Z
With the Great Resignation shaking up the U.S., there have been significant changes to employee populations. Millennials and GenZers are leaving at staggering rates with an average increase of more than 20% between 2020 and 2021. As these newer generations join in on workforce duties, they too will need mentors who can guide them through their first few years.
We have been experiencing a shift in the workforce, with more and more companies recognizing that they need to offer benefits other than just pay.
Job seekers are realizing this too – as Generation Z will make up 27% of all employees by 2025 according to World Economic Forum data. With so many young people entering industries like retail or service-based jobs where wages might not be very high at first, ensuring your staff have worthwhile benefits makes good business sense.
Not surprisingly, 94% of large employers believe that voluntary benefits will be more important to their total rewards strategy going forward, because they create a sense security and help decrease burnout while increasing productivity. For those who don’t offer any type or amount on-hand, having strong carrier partnerships is key for providing a seamless experience across your entire workforce.
Combating The Rising Cost of Benefits
The cost of benefits is rising, and it’s a concern for many employers. Recent studies found that there had been a 4% rise in these costs in 2021, and similar rises were expected moving forward. It’s further noted that 60% of companies say they were experiencing major issues with increasing costs.
What can companies do to ensure they are meeting their employee’s needs, while also managing the increased costs?
With the price of healthcare rising every year, it is no surprise that employers will be investing heavily in strategies and tools to help them reduce their costs in 2022. Key trends include consumerism, real-time dependent verification and tools that help employees enrol upfront in best-fit, low-cost plans. Costs can also be reduced with dependent verification audits as these prevent companies from cover those who do not qualify. As AI/ML continues in it’s popularity rise, the tools to automate and simplify the process will also increase. In short, dependent verification tools save both time and money, but also minimize risk and improve compliance too.
Employees Want to Be Active Healthcare Consumers
As the workforce population continues to change, employees are becoming more involved in their healthcare decisions. Healthcare consumerism means that your staff will be able to make empowered choices for themselves if they understand what benefits exist and how best use them.
Moving forward, we expect this trend of increased employee engagement through benefits education and guidance on lifestyle changes to continue.
HR leaders are going to have find ways of getting creative with their benefit education efforts. They should choose a ben admin provider that offers robust customer experience call centers, because this could help them connect employees with the information, they need without burdening HR. It would also give decision support in benefits shopping experiences through personal recommendations, without adding to the HR workload.
The Broker Rule Is Changing with The Industry
The evolving nature of the broker role is evident in that it now includes strategic services. Brokers will likely spend more time advising their clients, taking on a leadership position with employers who need help navigating changing regulations and an increasingly complex benefits landscape. According to recent research, “broker/benefits advisor provides valuable support and advice beyond simply presenting our benefit options,” so this trend should continue into 2022.