This sent the message that employees didnt have to be connected all the time, Miracle says. New York City joined other cities such as Toledo, Ohio, and states such as Colorado and California in passing pay transparency laws. Please enable scripts and reload this page. Practice Fair Chance Hiring for Those with Criminal Records. Benefits should not be fixed and [should] change, but employers also should not just react to the latest trends, Carroll says. The challenge is that market, or industry trends change fast, so discovering how to keep retraining in this scenario is essential. The pandemic forced people to stay at home which turned into an opportunity to reevaluate where and how they spend their time. To manage the hybrid or remote working model, employers will need to change the way they track employee activity in order to maintain trust. A 2022 Gallup poll found that 42% of employees cited that an organizations diversity and inclusion efforts are an important factor when deciding whether to accept a new position or not. Disclaimer, Practice Fair Chance Hiring for Those with Criminal Records, Prioritize Social Media and Brand Awareness, Retrain Employees to Overcome Competition, Delta Dental of California and Affiliates, Challenging Traditional Job Requirements to Broaden Candidate Eligibility, Hybrid and Remote Mentoring for Effective Integration of Junior Employees, Ask An Advisor: How Technology Is Changing the Workplace. Pay transparency became one of the hottest compensation issues of the year: Calls for pay transparency reached a fever pitch, with large amounts of workers calling for employers to be open about salaries. Employees want and expect more frequent career steps and growth than in the past, and organizations need to build the systems and structures to deliver that. Your session has expired. Comprehensive compliance expertise on EPP, Risk Management & Workplace Safety, State Unemployment & Workers Compensation. The Global Wellness Institute believes workplace mental health benefits will grow 9.8% annually over the next five years. Leaders must re-imagine how the post pandemic business landscape will operate for their organization and communicate this to every worker. What's considered an effective rewards strategy has evolved in recent years. We found that people are most likely to leave during the second and third years, Dann says. HR leaders should pay special attention to the unique needs of working parents and consider creating special work practices to address their needs such as; subsidized childcare, and expanded parental leave for new mothers and fathers. Members may download one copy of our sample forms and templates for your personal use within your organization. The U.S. workforce recorded a quit rate of 3% in November 2021, tying September's record for a series high dating back to December 2000, according to U.S. Bureau of Labor Statistics data. Interested in learning more? Senior executives who seize this opportunity to redefine employee benefits can generate lasting value for their organizations. Many of our nurses are working additional shifts for a specific reason, such as paying off debt or saving money for a home purchase, says David Coppins, the Quincy, Mass.-based companys CEO and co-founder. Prior to joining USIs Seattle office, Megan specialized in long-term care insurance and has been a respected speaker for groups like SHRM, CEBs, and NAHU throughout the West Coast. At many organizations, this has rarely been the case. One way employers are giving employees increased flexibility is by offering remote or hybrid work opportunities to those who dont wish to go into the office every day. Health Plan Cost Increases for 2022 Return to Pre-Pandemic Levels - SHRM Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. One of the biggest trends in HR is to offer Child Care benefits proven to yield the highest return on human capital investment. And venture money is following this trend, with tools like League, Virgin Pulse, Limeade, BetterUp, SoundingBoard, SpringHealth, and meQuilibrium, to name a few. The increase in employer offerings has risen to 91% with equal accessibility deemed a high value for employees. 2023 - ExtensisHR | All rights reserved | Privacy Policy | Search | FAQs | Referrals. In fact, Glassdoor reports that 15 companies ranging from Google to Hilton Hotels and Apple, are offering well-paying jobs to those possessing in-demand skills, but lacking a degree. Brett Farmiloe is the Founder and CEO and currently CHRO - of Terkel.io, a platform where business leaders can answer questions related to their expertise and get published in articles featuring theirinsights. Skills based hiring expands the prospective talent pool but also allows internal employees opportunities greater visibility into their career mobility by providing them with educational pathways for specific industries and job functions. This directly impacts companies with reduced workplace attendance and productivity. A recent survey from Remote.co, for instance, found that the vast majority of employees (80 percent) say their current salary is not keeping up with inflation. Latest Increase In Debt Ceiling Underscores 6 Ways To Avert A Crisis, Artificial Intelligence Series 2 Of 5: AIs Influence On The Workforce, Strong Employment, Inflation Means Fed Has To Keep Hiking Interest Rates In 2023, Why Outsourcing Is The Future Of Remote Work, The New Old 4 Models & Muscles For Your 100-Year Life, research conducted by Paychex and Future Workplace, Accentures survey finds that 83% of workers prefer ahybrid work model and that 63% of high-growth companies have already adopted a productivity anywhere workforce model, United States Patent and Trademark Office, Stanford Center on Longevity predicts half of todays 5-year-olds can expect to live to the age of 100, Wileys Talent Development Solution for Employers, The Evolving Role Of Learning In Workforce Transformation, the Omicron variant, a growing number of school districts in the United States have postponed reopening of schools or switched to remote instruction, McKinsey research finds working parents are more likely to have left their jobs during the past 2 years. These ten power skills are shown in Figure 4. In many ways, the priority of employee benefits hasnt changed too drastically. Hewlett Packard is an inspiring example of expanding benefits to employees and their families. To help alleviate the pains caused by the Great Resignation, employers are getting creative and adapting to offer improved flexibility and stronger benefits. Hybrid work is here to stay. The pandemic started a lot of conversations acknowledging that employee well-being is a critical business need, says John Bremen, managing director with consultancy WTW in the Chicago area. Her focus is to work together to create solutions around cost, compliance, technology, and communicationin order to establish a strategic, long-term plan customized to your organization. According to a study done by IPSOS, 62% of Americans say that their health is more important to them now than prior to the COVID-19 pandemic. According to the 2022 LinkedIn Global Talent Trends Report, a work-life balance was the most important factor that individuals sought when looking for a new position. However, after analyzing specific jobs, the agency found that at least some of the work could be done remotely. However, with the changing health care landscape and reopening of medical facilities, insurers suggest upward trending claims activity. In June, the U.S. Supreme Court overturned Roe v. Wade, the landmark 1973 decision that protected women's right to have an abortiona move that spurred several large employers to announce they were adjusting benefits policies to help their employees continue to access abortion services. Linda Shaffer, Chief People Operations Officer of Checkr. This is likely to continue, especially with the uncertainty over the Omicron variant. $("span.current-site").html("SHRM China "); document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. What is the biggest trend HR is facing and will face in the future? Sarah Chavarria, Executive VP & Chief People Officer of Delta Dental of California and Affiliates. While raising wages is one way to attract and retain employees, research conducted by Paychex and Future Workplace among 603 full-time workers found 62% of employees identified well-being benefits as key a key factor in deciding whether to apply for a new job. Of those offering retirement plan options, 83% contribute with (varied) employer matches for 401(k)s, and 76% contribute to Roth 401(k) plans. When in Doubt, Ask Because Verizon has thousands of employees in every demographic group, its benefits have to cover many bases. Kevin Ehlinger, Vice President, Product Marketing of TOOTRiS Child Care On-Demand. At the same time, Verizon, like a growing number of employers, is expanding the definition of benefit to include the tangible and intangible elements of what an employer offers, including flexibility regarding where and how employees get their work done. LSAs may cover expenditures like fitness memberships, athletic equipment, home office expenses, and so much more. Benefit and work arrangement expectations are rapidly rising and employees are expecting more from their employer or potential employer. Please confirm that you want to proceed with deleting bookmark. Employers control the amount of funds they contribute and what types of expenses the funds can be used towards. Soaring inflation was the common factor behind many of the biggest headlines in the world of compensation and benefits in 2022, but other developments were on employers' minds as well, including abortion benefits in the wake of a landmark U.S. Supreme Court reversal; transparency around job salaries and wages; and employee mental health in a time of extreme global insecurity. A confluence of factorsincluding widespread inflation, economic instability and increased health care utilization as a result of the pandemichave driven larger-than-usual increases for 2022 and predicted increases for 2023. On Nov. 1, New York City implemented a pay transparency law requiring employers to include a good-faith salary range in job postings. Source: 20th Annual U.S. Employers need to do some analysis first, because not all benefits are right for every organization.. We can help. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Our focus is on whether we have the benefits that provide the choices that can meet the needs of this very diverse group. Such technology is already a part of many workplaces and will continue to shape the labor market. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. SHRM has recently published its 2022 Employee Benefits Survey which shows the trends worth paying attention to as employers prepare for the upcoming benefits renewal season. Unsurprisingly, the rise affected virtually every aspect of employees' lives, from increased mental angst and financial stress to shelling out more on everything from housing to gas and groceries. Future Workplace and Blue Beyond Consultings research, Closing the Employee Expectations Gap, conducted among a sample of 753 business leaders, HR leaders and knowledge workers, uncovered eight out of ten employees who say it is important for their companys values to align with their own. The agency was able to quickly address the compensation issue by increasing the starting hourly rate and offering hiring and retention bonuses. You can find out more about which cookies we are using or switch them off in settings. Please enable scripts and reload this page. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { May 19, 2022 | All, Benefits Administration. This means clearly defining how they will create a fair and equitable workplace for all employees regardless of location, communicate how leaders will manage employees they never physically see, and how teams will achieve work flexibility while meeting their goals. As Figure 1. Social, emotional, and advanced cognitive abilities will be preferred over technical ones. Even though not all of them have used it, 75 percent of the workforce signed up for this benefit, Coppins says. One of the biggest trends we will see is organizations continuing to shift toward a people-first culture and making it a business priority. Inclusivity efforts are reaching closer to the home. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Our focus is on integrating employee benefits with life to make work easier and better for everyone, says Sam Hammock, CHRO of the New York City-based telecom giant with about 120,000 employees. This will continue to get worse unless companies support their working parents. IntelyCares newest and most popular benefit is the option for employees to access their pay within 15 minutes of completing a shift. Register for the webinar at www.ebcflex.com/webinars. While this does not mean working in the same job for 60 years, it does pose an important question for HR leaders: How can increasing a companys commitment to lifelong learning be used to up-skill and re-skill current workers over what may be a 60 year career? Women leaders across all sectors are deciding to leave their organizations because of three primary factors.. Reasons include exhaustion from the pressures of working from home and juggling childcare responsibilities, struggles with returning to the office but not finding consistent childcare, and reevaluating their overall work-life balance. Gillian Crismier is a Vice President and Employee Benefits Consultant at USI. Its important to start the conversation about what this type of approach to benefits would look like, not only now but in the future. The 12 Biggest HR Trends in 2022 | Blog.SHRM.org Finally, companies can consider pushing the limits of workplace flexibility by offering all employees (not just parents) the ability to cut back to 60 percent workweeks or downshift to a less-demanding role for a time, with the understanding that they can ramp back up when ready. Organizations that are least successful are not having these conversations at all. Employee benefits - 6 trends for 2022 - NEMR HR It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. BrightPlans 2021 Wellness Barometer survey found over 80% of employees want support and guidance from their employers on personal finances - not only for retirement and financial education - but also digital budgeting, financial planning, and access to financial advisors. What was once a knee-jerk reaction to discrimination in the workplace, organizations are now intently listening to the sound of diversity, equity, inclusionand belonging. Even before the Supreme Court's ruling, Amazon, one of the biggest private-sector employers in the U.S., said it would pay up to $4,000 in travel expenses annually for employees to undergo abortions in states where the procedure is legal, and Microsoft announced it would expand benefits to cover costs for employees seeking abortions and other procedures in different states. According to a PEW Research study, low pay, lack of advancement opportunities, feeling of disrespect, and the lack of flexibility were some of the top causes for individuals who quit their job in 2021. Our 21 HR Jobs of the Future research identified a range of new HR jobs to be created between now and 2030, many focused on humans working seamlessly with machines, such as Algorithm Bias Officer and Human Machine Teaming Manager. Salary.com's Cost of Living Adjustment Survey Report, released in the spring, found that most U.S. organizations (73 percent) targeted a payroll budget increase of 4 percent or more this year and a plurality of organizations (43 percent) are growing their salary merit-increase budgets by 5 percent or more. For example, when Netflix and other companies announced they were offering unlimited paid time off to their employees, many employers rushed to follow suit without considering whether unlimited paid time off was appropriate and workable for their workforces. Megan emphasizes a long-term strategic approach to optimizing benefits, in order to maximize the effectiveness of employee attraction and retention efforts. #9 Working Parents Expect a New Employer Value Proposition. Employers in the U.S. expect medical plan costs per employee to rise 5.6 percent on average in 2023, Mercer reported earlier this year, a significant jump over the premium increase of 4.4 percent expected for 2022. As every aspect of business continues to transform, one of the key things we need to do is create purposeful experiences in the office that deliver real value so that our direct, face-to-face interactions have meaning. If you disable this cookie, we will not be able to save your preferences. That left the last issue: employee benefits. Social media and brand awareness tend to go hand in hand. In addition to mental health coverage, the option of virtual health care has increased in importance. Because Verizon has thousands of employees in every demographic group, its benefits have to cover many bases. Other events like the crisis in Ukraine increased stress and anxiety as workers worldwide were concerned about what a European war would mean for the rest of the world. #7 Up-Skilling HR Is Critical To Lead Workforce Transformation. DEI is the thread that flows through organizations if they are to experience long-term retention of current and prospective employees. Need assistance with a specific HR issue? You have successfully saved this page as a bookmark. This is not limited to ethnic and gender inclusion, but should also include individuals with criminal records. Full-service HR, benefit management, payroll, recruiting, risk and compliance with leading HR technology. Heres why. The number one power skill, resilience, is defined by Andrew Shatte, PhD, Co-founder of meQuilibrium, as the ability to demonstrate problem solving, emotional control, optimism, and self-efficacy. } In addition to financial wellness, nearly 30% of the workers surveyed in the Paychex and Future Workplace survey requested improved mental health support and resources. Other benefits that have become more important to employees include flexible work environments, more time off, and an overall sense of work-life balance. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); [Special Event] BRB: The Working World Takes a Break, Minimum Wages Are On the Rise in Several States. Fortunately, for employers, this means there doesnt need to be a complete overhaul of employee benefits in order to provide great value. Creating Cultures focused on developing skills and creating consistent career growth are key building blocks to a winning strategy. Join us at SHRM23 as we drive change in the world of work with in-depth insights into all things HR. Right now, benefits are the most important thing employees look for in addition to culture and work purpose, says Nick Shah, founder and CEO of Peterson Technology Partners in Park Ridge, Ill. Most people are looking for the whole packagea company culture of learning, growth with flexible work conditions, and cutting-edge, cool work to dothat will keep them motivated in the long term.. What is the new role and purpose of the physical workplace? Employers are adjusting to the rules, however, as some employers have responded to the new laws by posting very broad salary ranges. Finding the right mix of benefits also gives employers a powerful story to tell current and prospective employees. The Future Of Software Developer Teams: Remote By Default? Virtual & Las Vegas | June 11-14, 2023. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { The environment is different, and there is the feel of a cultural change, she notes. $("span.current-site").html("SHRM MENA "); $("span.current-site").html("SHRM MENA "); Segals Khamis recalls the recent #showusyourleave viral movement launched by theSkimm media company that gave companies an opportunity to highlight their parental-leave policies. The employee well-being benefits most in-demand include financial well-being and emotional/mental health well-being. The SHRM Blog does not accept solicitation for guest posts. Fortune 500-level benefits with expert HR, payroll, recruiting, risk & compliance management supported by leading HR technology. One thing is clear, leaders must demonstrate resilience, empathy, transparency, and digital fluency to ensure everyone has a voice in creating the future of work. Finding what fits best for each company requires a tailored approach and mixing trends with workforce needs. ESG impact and effective ESG operating models | McKinsey Leaders can start to act on this employee expectation gap by engaging in continuous listening programs with employees, and committing to more humane working conditions for all employees regardless of where they work. You can also check your hard drive for cookie files. In-depth HR guidance, payroll management, tax administration, recruiting and talent management. We can help! So, when company surveys indicated that employees in North America value more downtime, the company acted to meet this need by closing all of its offices in this region during the U.S. Thanksgiving holiday week. With the spread of the Omicron variant, a growing number of school districts in the United States have postponed reopening of schools or switched to remote instruction. McKinsey research finds working parents are more likely to have left their jobs during the past 2 years than their non-parent counterparts. Although specific wants and needs will differ for each employee, these benefits have become must-haves for workers considering new job opportunities over the past two years. Working in 2021 taught us we need to develop resilience to adapt to rapid fire changes in how and where we work. Despite the increases, pay raises ultimately trailed inflation and the majority of employees felt the toll that the rising cost of living took on their financial situations, resulting in their feeling unsatisfied with their pay. To remain competitive, business leaders need to seriously consider what current and prospective employees need and value. SHRM released its 2022 Employee Benefits Survey in June, revealing results collected between January 11 and February 28 of this year. Her ultimate goal is to partner with Finance and Benefit Teams in order to design innovative solutions and deliver superior services to her clients. Please confirm that you want to proceed with deleting bookmark. Here are 12 of the biggest HR trends in 2022: Adopt Remote Work Policies. 2022 Benefit Trends in an Era of "The Great Resignation", Craft inclusive benefit strategies to support recruitment and retention efforts, Adjust to changes caused by increased remote work, Manage open enrollment in a virtual environment, Implement meaningful population health management to reduce costs, Increase retention and hiring by supporting employees' financial security.