Embracing the future of employee benefits: A reflection post-COVID
Since COVID-19 reshaped the business landscape, I’ve had the opportunity to reflect on the profound changes in the employee benefits world—especially for small businesses. The pandemic forced many companies to quickly adapt to remote work, digital benefits enrollment, and more flexible benefit options. While these shifts were initially driven by necessity, they’ve created lasting changes that continue to shape the future of work.
Over the past few years, I’ve seen firsthand how small businesses have embraced these changes, with a particular focus on leveraging technology and expanding benefit offerings to attract and retain top talent. Here are the key insights I’ve gained since COVID—and how businesses can capitalize on these trends to build more effective and sustainable benefits programs:
1) Expanded benefit choices drive financial and physical wellness
The pandemic highlighted just how critical a robust benefits package is for both attracting talent and supporting employees. In addition to traditional health insurance, employees increasingly expect benefits that address a broader spectrum of needs—mental health, childcare, elder care, and even pet insurance.
Since COVID, small employers have recognized the importance of offering more diverse benefits to meet these evolving needs. A Care.com study showed that 98% of employers plan to either offer or expand employee benefits, with a focus on those that address employees' most essential needs—like child and senior care, mental health support, and even pet insurance. This shift isn’t just about offering more benefits; it’s about meeting employees where they are and providing meaningful support.
Additionally, benefits like hospital indemnity plans, which provide financial protection during illness, are becoming essential. In times of economic uncertainty, these offerings help employees navigate financial stress, which can, in turn, improve morale and productivity. Studies show that 12% of employees miss work due to financial stress—something that targeted benefits packages can help alleviate.
2) Technology and automation are now within reach for small employers
The pandemic accelerated the adoption of digital platforms for benefits enrollment and administration, and this shift is here to stay. Remote workforces and a need for efficiency drove small businesses to adopt tools like GoCo, Justworks, and Namely—HR and benefits platforms that streamline enrollment and improve employee experience. According to a Guardian report, 7 in 10 employers have now digitized their benefits enrollment, with many small businesses leveraging these platforms to stay competitive.
These platforms make it easier for small employers to offer the same modern, automated benefits experiences that were once reserved for larger organizations. It’s no longer a heavy lift to implement these systems—companies with fewer than 50 employees can typically have a platform up and running in just two weeks, while those with 50-99 employees can implement a new system in about four weeks.
By embracing these technologies, small businesses can save time, reduce administrative burdens, and provide a seamless benefits experience for their employees, regardless of size.
3) The benefits experience is evolving for the better
Since COVID, employees have come to expect a digital-first experience in almost every aspect of their lives, including managing their benefits. They want instant access to information, simple tools for enrollment, and personalized recommendations tailored to their unique needs.
Innovations in benefits platforms are responding to these expectations, creating a more engaging and customized experience for employees. Tools like AI-driven analytics suggest the most relevant benefits at the right time—such as accident insurance for an employee recovering from an injury or hospital indemnity coverage during a medical crisis. Decision-support tools like Nayya, Jellyvision, and Picwell are also helping employees navigate complex benefits choices, ensuring they select the options that best align with their needs and financial situation.
This shift towards personalized, year-round benefits management means that small employers can now offer a more dynamic and engaging benefits experience. Employees no longer have to wait for open enrollment to make changes or explore new options—they have the tools they need to make informed decisions throughout the year.
Embracing the future of employee benefits
Since COVID, it’s been clear that the landscape of employee benefits is evolving rapidly. Small businesses now have more opportunities than ever to offer competitive, comprehensive benefits packages. By embracing technology, expanding their offerings, and providing a more personalized experience, they can attract and retain top talent while supporting employees' physical and financial well-being.
As businesses look ahead, the key to success will be leveraging the right tools and strategies to adapt to these changes and remain competitive in a rapidly changing workforce. The future of employee benefits is about more than just offering a wider array of options—it’s about creating an experience that’s engaging, efficient, and aligned with the needs of today’s employees.