As open enrollment season approaches for many employers, it’s crucial to evaluate whether your company’s benefits offerings are keeping up with the evolving needs and expectations of your workforce. In its recently released 2023 Benefits and Compensation Trends in Corporate America Report, Goldman Sachs Ayco, a prominent wealth management firm for employers, shed light on the emerging benefits trends that are reshaping the corporate landscape. Let’s delve into these five key benefit trends that every employer should take note of before the year comes to a close.

1. Healthcare Cost Coverage Is a Priority A significant portion of employers—nearly 40%—have absorbed increases in health plan premiums, according to Goldman Sachs Ayco’s report. As predicted by global advisory firm Willis Towers Watson, health plan premium rates are expected to increase by 6.4% in 2023. In response, 55% of employers have chosen to raise premiums, while just under 5% have managed to lower them. Some employers have even switched carriers to find more favorable rates. This trend highlights the increasing efforts of employers to cover healthcare costs and mitigate additional financial burdens for their employees.
2. Mental Health Support Is Essential Mental health benefits have become a staple, with 95% of Goldman Sachs Ayco’s clients offering mental health support in the form of employee assistance programs (EAPs), apps, and telehealth options. The last three years have seen companies enhance and promote these services, recognizing the importance of supporting employees’ mental well-being. Beyond EAPs, companies are now exploring on-demand services that provide immediate assistance through apps, addressing mental health needs more effectively.
3. Caregiving Benefits Are on the Rise Caregiving benefits, including child care and elder care assistance, have surged by 177% over the last three years, according to the report. More than half of the surveyed companies now offer assistance in finding reliable caregivers or subsidizing the cost of care. The pandemic highlighted the need for such benefits, as employees struggled to balance work and caregiving responsibilities. Companies are responding by alleviating the stress associated with caregiving, enabling employees to maintain their work schedules more effectively.
4. Pet Insurance Gains Popularity Pet insurance benefits have experienced a remarkable increase of 120% in the past three years. In job interviews, questions about pet insurance have become as prevalent as inquiries about employee medical coverage. This surge in demand reflects the growing importance of pets in employees’ lives. Offering discounted pet insurance not only saves employees money but also enhances their sense of well-being by supporting their furry family members.
5. Lifestyle Spending Accounts Gain Traction While currently adopted by less than 5% of employers, lifestyle spending accounts (LSAs) are poised to become a significant benefit trend. LSAs are employer-funded accounts that cater to various personal needs, from gym memberships to student loan repayments. Goldman Sachs Ayco’s report suggests that LSAs can alleviate the challenge and cost of managing multiple vendors for different voluntary benefits. This flexible approach to benefits allows companies to provide tailored support to their diverse workforce while directly contributing to employees’ well-being.

In the dynamic landscape of employee benefits, staying competitive requires a proactive approach that aligns with the evolving needs of your workforce. The trends highlighted in Goldman Sachs Ayco’s report offer valuable insights to guide your benefits strategy, ensuring that your offerings remain appealing, supportive, and aligned with the well-being of your employees.

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