Wouldn’t it be nice to talk about 2021 voluntary benefits trends without mentioning COVID?

Unfortunately, though, the pandemic has shifted too many realities to ignore its impact. And voluntary benefits are no exception. As in all areas of our lives, results from and reactions to COVID are shaping the future of VBs.

Here’s a look at what experts predict for the coming year. You’ll see that in many cases, COVID didn’t create a new trend. Rather, it strengthened or accelerated an existing one.

1. Voluntary Benefits Continue to Grow

Case in point is the growth of voluntary benefits.

In March 2020, BenefitsPRO reported that “to attract and retain workers in today’s competitive labor market,” more employers were adding voluntary benefits to their offerings. Voluntary benefits were “table stakes,” and pet benefits, among others, were on the rise.

Then came COVID. In the first few months, voluntary benefits took a hit, when companies missed entire payroll cycles and laid off workers. But as the job market recovers, COVID is increasing and highlighting the need for voluntary benefits. For example:

1. Critical illness insurance – What millennial thought it was relevant in January 2020? Now, it’s a top consideration.
2. Child Care Options – Always important to young families, its urgency skyrocketed this year. Combining back-to-work schedules and school-from-home is a continued challenge.
3. Pet Benefits – With people isolated and lonely, pet adoption rates took off during the pandemic, and pet parents grew even more attached to their existing pets. Pet benefits are now top of the list for many employees.

More businesses will be adding VBs to stay competitive.

2. More Choices

Businesses that already offer voluntary benefits will be expanding them. In the past, voluntary benefits meant dental, vision, life, and disability. Period.

Not so anymore. Employee consumerization is driving the trend towards a customized employee experience in all areas, including voluntary benefits.

Employees want to choose the benefits that are most necessary to them. They don’t want HR dictating a cookie-cutter approach. Popular VBs include:

• Pet Benefits
• Identity theft protection
• Legal insurance
• Employee purchasing programs

Purchasing programs are particularly attractive post-COVID since the purchases are often online vs. in-store.

There’s even a new term to describe benefit customization: Employer funded shopping sprees. It sounds much more exciting than “more options during open enrollment.”

3. Financial Wellness Programs

Financial wellness benefits are nothing new. But with the very real financial fallout of the past year, employees are actively looking for help in this area.

Analysts predict that companies will expand their financial wellness offerings to meet their employees’ needs. Options include:

• Financial planning services
• Budget counseling
• Student loan payback
• Bill payment programs
• 401(k) investing

This year may even see the creation of innovative new financial programs.

4. Greater Employee Attention and Review

In the past, HR struggled to get employees to give proper time and attention to choosing benefits during OE.

A 2015 AFLAC study found that 46% of US employees spend 30 minutes or less researching and signing up for health care benefits!

On average, employees lost $750 a year from joining the wrong plan, costing their employers $500 to $2,100 in collateral damage from low productivity and absenteeism.

All that is going to change in 2021. 2020 taught all of us just how much we can lose by making poor benefits choices.

In a much-touted October 2020 survey, Kiplinger’s found that 71% of employees plan to spend more time reviewing their voluntary benefits than they did last year. 53% plan to make changes to their benefits coverages.

Employees will be looking closely. Employers, will your benefits offering meet their expectations?

5. Improved Communication and Enrollment Options

In-person group benefits meetings were on the way out before COVID, but this year banged the final nails into its coffin. OE 2021 was, by necessity, virtual.

But virtual communication is also evolving. “Email is becoming the new snail mail,” says Ed Ligonde, EVP at Nielsen Benefits Group.

Industry insiders predict a rise in communication via:

• SMS/text messages
• Video
• Company social media platforms

Enrollment options will expand, too, reflecting the new virtual environment:

• More off-cycle benefit enrollments
• Virtual self-serve enrollments
• On-demand call center access for benefits questions

The new technologies can increase employees’ participation while decreasing HR’s burden.

Keeping up with the trends is crucial for a business to stay competitive in the job marketplace. Have you considered adding new VBs such as pet benefits to your benefits package?