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New York Life | August 17, 2022

Retaining and recruiting workers can pose a challenge for any business, and those goals are even more difficult to achieve during a labor shortage. But don’t underestimate the role a strong benefits package can play. The pandemic  further elevated interest in particular benefits, as well as different kinds of perks.

During the pandemic, workers had to cope with health issues, financial concerns, and changing job demands. Benefits helped make a difference.

Evolving expectations about financial offerings.

More than four in five consumers say the pandemic impacts their degree of financial concern, according to the 2021 Insurance Barometer Study from LIMRA and Life Happens.1

Top financial concerns in 2022 include paying monthly bills, saving for an emergency fund, health expenses, final expenses and setting aside enough money for a comfortable retirement.² Benefits that can address those anxieties can take many forms, including a retirement plan, and medial, long-term care, life, and disability insurance.

Life insurance is an important part of employer benefits programs. 13% of life insurance policy owners said they obtained their coverage for the first time in 2020, and half of them did so through an employer, according to the 2021 Barometer Study. ³ In 2022, nearly one third of US adults say that a major reason they have life insurance is that it is an employer provided benefit.3

Businesses are taking note: One in four employers told researchers that life insurance is a bigger priority.

Winning the war for talent

To attract and retain talent, salary is not enough. Employees, especially millennials, view insurance benefits offered at work as more valuable than before the COVID-19 pandemic. In a survey of employee interest in employer-sponsored benefits, 48% of employees said they would be interested in paid family or medical leave, and 44% would be interested in life insurance.⁵

With supply chain issues and growing inflation, employers are looking to attract talent with competitive benefit packages. Surveys show 45% of small business employers and 66% of midsize employers think their company will be offering more benefits in the next five years compared to now.⁵

Employee Education Gap

Surveys also show, however, a misalignment between employee needs and employer perception. When asked if employers understand the benefit needs of employees, 88% responded mostly or completely. When employees were asked how well their employer understands their benefit needs, only 40% responded very well.⁵

Education and engagement are the key to better understanding employee needs. Employees are looking for clearer information regarding their benefit options. 71% of employees rely on their employers only “somewhat” or “not at all” when it comes to understanding their benefits.⁵ To help address the benefits education gap, it is important you choose the right provider for your business – one that is equipped to help educate and service your employees.

Let’s Get Started

At New York Life Business Solutions, we’ve been helping protect business owners and their employees for years. Talk to an agent today to learn about the available options for your business.

Additional Resources

The importance of employee benefits for small businesses.
Whole life at a glance.
Prepare for a new work environment.

Sources

1 Stephen Wood; Maggie Leyes; James T. Scanlon, “2021 Insurance Barometer Study,” LIMRA and Life Happens, November 2021. https://www.limra.com/en/research/research-abstracts-public/2021/2021-insurance-barometer-study/

2 Stephen Wood; Maggie Leyes; James T. Scanlon, “2022 Insurance Barometer Study,” LIMRA and Life Happens, April 2022. https://www.limra.com/en/research/research-abstracts-public/2022/2022-insurance-barometer/

3 Patrick T. Leary, Kimberly A. Landry, Ron Neyer, “Harnessing growth and seizing opportunity: the future of workforce benefits,” LIMRA and EY, April 18, 2022.

https://www.limra.com/siteassets/research/research-abstracts-shared/2021/harnessing-growth-and-seizing-opportunity-the-future-of-workforce-benefits/2021_limra-ey_workforcebenefitsstudy.pdf

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