Back in PC times (that’s Pre-Corona), BenfitsPRO published a blog on the future of voluntary benefits.

It was March 4th of this year, and they reported that “to attract and retain workers in today’s competitive labor market” (remember those days?), more employers were adding voluntary benefits to their offerings. Voluntary benefits were “table stakes,” and pet benefits, among others, were on the rise.

The future was bright, indeed.

And then came Corona. Less than three weeks later, on March 23, BenefitsPRO reported that voluntary benefits were taking a hit. Companies were missing entire payroll cycles, and without payroll, there were no payroll deductions. And thousands of workers who were enrolled in voluntary benefits were being laid off entirely.

And now, with a decidedly employer-favored job market, and many companies in an ongoing hiring freeze, should businesses still be investing in voluntary benefits?

A superficial look might seem to indicate “no.” But a deeper study of market trends and a long-sighted view shows that voluntary benefits are just as crucial as ever.

Keep employees close

As the economy opens up, unemployment rates are starting to decline. In fact, the U.S. Bureau of Labor Statistics reported that the unemployment rate was down to just over 11% in early June.

That number is still high, though, and it’s an average. Hard hit industries have much higher unemployment rates.

Still, one day the crisis will end. As Baren Raaff, CEO of Harver, explains, “Companies that are struggling today, should remember that this crisis will eventually end and they should have a re-opening strategy in place. Keep former employees close because tens of thousands of companies will re-open overnight, resulting in an unprecedented recruitment storm.”

And when you’re ready to rehire, you’ll need an attractive package to entice former employees back and new employees into the fold. Not to mention wanting to keep current employees happy so they won’t be looking elsewhere for an employer with better benefits.

And a competitive benefits package includes voluntary benefits.

A talent pipeline

Keeping in mind a post-Corona talent war, many businesses are proactively positioning themselves as future employers.

Crucial to this effort is building and maintaining a talent pool. That means reaching out to and engaging former and prospective employees even if YOU’RE NOT HIRING NOW.

According to Jennifer Ho, vice president of human resources at Ascentis, “an established pipeline ensures a smooth rebound when recruitment resumes. Also, having a powerful employer branding strategy integrated with your recruitment strategy will help bridge any gaps.”

Your employer branding strategy is made up of the parts of your company culture that define you as an employer. Hopefully, they’re positive qualities that attract employees – such as a voluntary benefits offering.

Changing Values

Still keeping an eye on the future, it’s important to identify what benefits employees will be looking for post-COVID.

Before Corona, there was a growing trend towards in-house amenities as benefits. Companies were offering fresh-cooked meals, yoga classes, and on-site gyms. And employees, especially Gen-xers and Millenials, loved it.

But Andrew Chamberlain, chief economist at Glassdoor, predicts a change. “Like a whole generation changed after the Great Depression, the behavior of young workers in regard to savings and risk-taking is going to change forever,” he says. They’re going to be much more cautious.

He predicts their attitudes about benefits will change, too. The physical perks won’t be as significant. That’s especially true since many employees may continue to work remotely.

But even if they come into the office, they’ll be looking for more practical benefits: flexible work options, 401k matches, telehealth plans, and other health benefits in voluntary benefits.

Deeper bond with pets

Pet benefits, in particular, may be enticing to prospective employees.

WhiskerDocs is a 24/7 veterinary telehealth service provider. Nicole Rogers, VP of Operations, points out that “Adoption rates soared during the pandemic, and people forged deeper bonds with their existing and new furry family members.”

Prospective employees will be looking out for their pets when they consider your benefits package. Pet health plans, such as from Pet Benefit Solutions, will help you attract talent when the time comes.