HR teams everywhere have been under a microscope these last few years. They are under a microscope, not because they’ve done anything wrong, but because the world decided to flip so many office dos and don’ts upside down. 

Questions like:

• Do we have to come back into the office to work?
• Why are my hours being cut short?
• How have my healthcare costs increased when nothing has changed in my personal life?
• Do I really have to show my face on every Zoom call?
• You aren’t going to pay for my pharmaceuticals anymore?

…have unfortunately become a pretty common occurrence for HR teams across the country. 

Today’s employees want access to everything without any kind of hassle. And, don’t we all! 

The challenges HR teams face aren’t just around employee communication though. There’s a number of different factors that go into the day-to-day of HR teams looking to provide for their organization.

Specifically, let’s talk about employees benefits and what HR is looking at day-in and day-out…

Top 8 employee benefit challenges

1. Rising Healthcare Costs
   One of the most significant challenges facing businesses today is the escalating cost of healthcare. In 2021, the average per-employee cost of employer-sponsored health insurance jumped 6.3 percent. This financial burden poses a challenge for businesses, as they strive to strike a balance between providing quality healthcare benefits and managing costs.
2. Balancing Cost and Value
   Finding the right balance between cost and value is a persistent challenge for businesses when it comes to employee benefits. As the cost of benefits continues to rise, companies need to evaluate the return on investment (ROI) of their benefit programs. A survey by the Society for Human Resource Management (SHRM) found that 57% of organizations struggle to control benefit costs while providing competitive packages. 

3. Evolving Employee Expectations
   Employee expectations regarding benefits have evolved over the years. Today’s workforce seeks personalized benefits that cater to their diverse needs and lifestyles. According to a survey by MetLife, 72% of employees want benefits tailored to their individual circumstances. This could look like financial wellness, healthcare options, student loan assistance, pet care, etc. Meeting these expectations requires companies to offer flexible benefits that address the varying needs of their employees. 

4. Communication and Education
   Even if companies provide robust benefit packages, their effectiveness can be diminished if employees are not fully aware of the offerings or do not understand how to make the most of them. A survey by Unum revealed that 53% of employees found it difficult to understand their benefits. Effective communication and education programs are crucial to ensuring employees understand and appreciate the value of their benefits. 

5. Attracting and Retaining Top Talent
   In today’s competitive job market, attracting and retaining skilled employees is a significant challenge. According to a survey by Glassdoor, 60% of job seekers consider benefits and perks a crucial factor when deciding on a job offer. To stay ahead, companies must continuously assess their benefit programs to ensure they remain competitive and aligned with the needs and preferences of top talent. 

6. Compliance and Regulatory Changes
   Navigating the complex landscape of compliance and regulatory changes is an ongoing challenge for businesses. Benefits-related legislation, such as the Affordable Care Act (ACA), can significantly impact benefit program design and administration. Staying up to date with these changes and ensuring compliance can be a daunting task for employers. 

7. Technology Integration
   As technology rapidly advances, businesses are grappling with the challenge of integrating technology into their benefit programs. From online enrollment platforms to mobile apps for benefits management, companies need to leverage technology effectively to enhance the employee experience and streamline administrative processes. A survey by Willis Towers Watson found that 47% of employers consider integrating technology into benefits as a top priority. 

8. Employee Financial Wellness
   The financial well-being of employees has emerged as a crucial concern for organizations. Financial stress can impact employee productivity and engagement. Offering benefits that address financial wellness, such as access to affordable loans or financial education programs, can help alleviate this stress and enhance employee well-being. 

Overcoming the challenges

Designing and implementing effective employee benefit programs is not without its challenges. However, by acknowledging and addressing these obstacles head-on, businesses can create compelling benefit packages that employees actually want. 

To learn more about TrueConnect’s Financial Wellness Platform, with access to financial advisors, emergency savings plans and loan options for your employees, click here.