It is the beginning of 2023 – when was the last time you re-evaluated your employee benefits package?
If you clicked to read this blog, you might be considering making some changes to the perks and benefits you offer based on trends across the market.
We’ll walk through one such trend: personalized benefits packages, and give you a framework for meeting the needs of your diverse workforce.
What is a personalized benefits package?
A personalized benefits package allows your team to choose from a range of benefit offerings, instead of relying on a standard, one-size-fits-all package that is the same for every employee.
This is typically accomplished by providing a set monthly or annual expense allowance, or what some companies call a “Lifestyle Savings Account.”
With a personalized benefits package, employees can take advantage of the benefits that matter most to them. Some examples of offerings in a more diverse and expanded package might include:
- Pet insurance
- Fertility support
- Adoption and surrogacy support
- Paid leave for family caregivers
- Social events
- Identity Theft Protection
Why are companies shifting to personalized benefits packages?
In the examples above, it’s clear that not every employee on your team would have a need for all those benefits.
For example, a recent college grad might be looking for a way to meet people through social events, while a father of three might be less likely to have the bandwidth to engage the same way.
One way to think about personalized benefits is to think about Netflix’s user experience.
You may be hard pressed to find two Netflix users who open up the app and see the exact same thing. The offering of shows and movies are the same for every user, but every user’s preference is different. As a result, Netflix provides recommendations, curated lists and a “keep watching” tab that is specifically tailored to each user’s preference and behavior.
A survey by PeopleKeep conducted in 2022 found that 65 percent of employees value choosing their own benefits, yet, only 36 percent of respondents felt they had a say in their benefits.
Taking a hyper-personalized approach to your benefits packages provides a range of advantages:
- You will attract and retain top talent
- Employees who feel cared for are more engaged
- When employees have the opportunity to decide what matters most to them, their burnout is likely to decrease
- Engaged employees and reduced burnout produces better business outcomes
Your benefits package becomes a “menu”
According to a survey by Willis Towers Watson, 94 percent of employers expect personalized benefits to hold greater importance in their organizations over the next three years.
It’s not enough to expect weekly pizza parties, unlimited PTO, or even a remote work option to satisfy your entire team. Your benefits are most powerful when they’re personalized, and can adapt to the needs of each individual.
Here are some ways to get started if you’re ready to explore personalized benefits at your organization:
- Conduct a survey asking your employees what types of fringe benefits they might like to see
- Start small. Suddenly giving your employees 40 additional benefits to choose from might feel overwhelming
- Make sure you have visibility into utilization of any new benefits you introduce
Whatever strategy you decide to take, ensuring your employees are central to your path forward is key. Any and all of your additional and adaptable benefits should seek to enhance their lives, not disrupt it.
Looking to re-evaluate your benefits package for 2023? Broadleaf’s Brian Fesmire walks through how offering personalized benefits can set your organization apart and enhance your employees’ lives.