Employers Aim to Provide Benefit Choice in the Face of Rising Costs

A Willis Towers Watson survey released Tuesday found that rising benefit costs are the top issue facing employers.

More than 80% of employers identified rising benefit costs as the main challenge facing their respective organizations over the next three years, according to a Willis Towers Watson (WTW) survey released Tuesday morning.

The next three major issues for employers were communicating benefit choices to employees, providing diverse options for multigenerational workforces, and a lack of employee engagement.

While providing benefit choices remains the broad goal for employers, survey respondents overwhelmingly indicated that improving employee wellbeing is the main priority.

Eighty percent of respondents stated that they are focused on implementing "physical, emotional, financial and social" employee wellbeing programs.

Additionally, 70% of employers are seeking to align their benefits strategy with enhanced corporate social responsibility policies (CSR).

The survey results support a WTW report from June which found that nearly one-third of employers say expanding benefit options is the top priority over the next three years.

Technology figures to play a significant role in benefit design and choice over the next three years, with 82% of employers aiming to use innovative programs to deliver benefit messages in the next three years. This is up from 44% who used technology for such means in the past three years.

Nearly two-thirds of employers plan on creating a benefits shopping experience for employees, again adopting technological solutions to meet employee expectations.

In June, Catherine O’Neill, senior director of health benefits strategy at WTW, told HealthLeaders that technological investment is crucial for employers if they are serious about offering meaningful benefit choices.

"I think choice is important, but there has to be that support system of communication and technology to help employees make the right decision," O'Neill said.

Similar to the push towards adopting CSR policies and meeting the needs of a diverse workforce, 64% of employers plan on aligning benefit programs with employee wants and needs, while 56% seek to incorporate "inclusion and diversity" into benefit programs.

This strategy runs parallel to the goal for more than 80% of employers to emphasize talent experience in the next three years, up 30% from the past three years.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.