How The Hybrid Workplace Has Changed Employee Benefits

Post-COVID, the hybrid workplace has become much more commonplace for many reasons. Some organizations appreciate the cost-savings of reducing office space overhead, which can be as much as $18,000 per employee, according to one study. Others appreciate that employees want flexibility at work, with 80% of employees expecting to work a minimum of three days per week remotely and 92% expecting to work at least one day per week remotely. Further, 59% of candidates are more likely to choose a job that offers remote work compared to jobs that don’t, and flexible and remote working arrangements are one of the top three benefits desired by employees outside of insurance-related benefits.

How The Hybrid Workplace Has Changed Employee Benefits

With a hybrid work environment being the new norm, employers have to make the shift to ensure their benefit platforms meet the demands of hybrid and remote work—the benefits that are important to employees for the new norm are sometimes different than those that were important prior to COVID, and employers need to ensure they’re compliant in the areas in which their employees both work and live when remote work is an option.

These trends mean employers might need to add new benefits and make adjustments to current benefits. Three areas of focus employers need to assess as it relates to the benefits of a hybrid work environment include:

•            Home office requirements

•            Health insurance

•            Dependent care support

Home Office Requirements

Now that more employees will be working remotely at least half of the time for the long-term, employers need to consider offering subsidies and support for a home office setup. An employer might opt to offer a flat sum per month to cover office expenses, such as high-speed internet and a landline, as well as a lump sum payment that provides the employee with the means to set up a home office with the proper office furniture and equipment. If a general lump sum payment or home office subsidy isn’t offered, then the following benefits should be considered for an employee who works from home permanently or part of the time:

•            Internet subsidy and hotspot

•            Ergonomic setup

•            Network hardware

•            Cellphone subsidy

Internet Subsidy and Hotspot

Employer-subsidized internet supports the employee in having the proper high-speed internet to work remotely and attend meetings. Additionally, covering the cost of a hotspot can support business continuity in the event of a power outage or other circumstances that might interrupt home internet service.

Ergonomic Setup

Though employers are not required to provide employees with ergonomic furniture, OSHA (Occupational Safety and Health Administration) does require employers to keep the workplace free and safe from ergonomic hazards. As such, it behooves employers to offer remote workers an ergonomic setup, including a chair that helps to prevent back, neck, and other body strains or injuries. Aside from offering employees the necessary setup to work comfortably, providing an ergonomic setup can help to reduce absences, worker’s compensation claims, and turnover rates.

Network Hardware

Employers should provide employees with the necessary computer hardware to do their jobs effectively. A work computer is a given. Additional considerations include a landline, printer, headset, and web camera.

Cellphone Subsidy

If employees are using their personal cell phones for work-related activities, employers should consider offering a cellphone subsidy to help employees cover their cellphone-related costs. The other option is to provide a cellphone solely used for work purposes, though many employees prefer not to have to deal with two separate cellphones.

Health Insurance Requirements

COVID has shifted many employees’ perspectives concerning health benefits. It’s essential for employers to understand what those perspectives are, so they can ensure they do their best to alleviate any concerns to help retain their workforce. Employers should consider:

•            Insurance options based on employee location

•            Portable insurance options

•            Mental health benefits

•            Telehealthcare

Insurance Options Based on Employee Location

With a partly remote workforce, employers need to ensure that their benefit plans work for employees in the various locations in which they live. It’s great to have healthcare, but if you don’t have a network of providers nearby, it can make utilizing the plan difficult. There are also local and state laws that dictate employee benefits, so employers need to be sure they are abiding by such laws in the areas they have employees.

Portable Insurance Options

Employees like to know that at least some of their benefits are portable should their employment be terminated voluntarily or involuntarily. Though it’s not necessarily a benefit to the employer to offer portable benefits, it can help to attract and retain talent when it matters to them.

Offering a health savings account (HSA) not only allows employees to pay for qualifying medical expenses on a pre-tax basis, but it’s also a benefit that is portable should the employee leave the organization. If you offer a high deductible health plan (HDHP), then it’s possible and common to offer an HSA with it. Life insurance and disability insurance are two additional benefits that many employers offer that can be made portable should the employee’s employment end with the company.

Mental Health Benefits

Mental health benefits were already becoming more popular prior to the pandemic. Now, post-pandemic, they are more important than ever. Individuals commonly needed mental health support during the pandemic, and mental health disorders, including anxiety, post-traumatic stress disorder (PTSD), and depression, continue to be on the rise.

Offering mental health benefits supports employees with their overall wellbeing and helps to reduce absences, improves productivity, and reduces turnover rates for employers. It’s vital for organizations to consider the big picture when it comes to benefits and ensure they are offering the right level and type of mental health benefits as part of their benefits package.

Telehealth Care

Similar to mental health benefits, telehealth benefits were on the rise pre-COVID. For those that hadn’t yet covered it, many health insurance companies expanded their coverage to include telehealth visits during COVID. This was necessary to ensure people still received the care they needed during lockdown or quarantine. As a result, telehealth and telemedicine became a convenience that many employees enjoy and want to continue receiving.

Telehealth provides convenience to see a provider from anywhere and at a time that works for a variety of schedules, the ability to be seen sooner than if you had to go in person, and a lower cost option than going to an emergency care clinic. It also minimizes exposure to germs at the local doctor’s office or clinic.

Telemedicine is available for several types of specialties, including psychiatry, dermatology, and general practice. As an employer, it’s important to find a health insurance plan that allows for telemedicine visits and, when possible, offers a telemed platform.

Dependent Care Benefits

Adequate dependent care is necessary whether employees are in the office or working from home. The Harvard Business Review indicates that inadequate childcare costs employers $13 billion a year in lost productivity and working parents $37 billion a year in lost income, based on pre-pandemic data. When parents are forced to choose between taking care of their children or working, it reduces the total workforce headcount and the level of take-home pay for families.

And children are not the only dependents employees need to worry about. An AARP study showed that 48 million Americans care for an adult friend or relative. Oftentimes, this care requires unpaid leave and costs over $7,000 per year in out-of-pocket expenses for the caregiver to help pay for expenses like home modifications, mortgage or rent payments, and medical care for the dependent. When employees are forced to adjust their schedules or take time off to care for adult dependents, it reduces their annual income by over $10,000.

Offering dependent care benefits to care for both children and adult dependents can go a long way in attracting and retaining talent, including:

•            Paid family leave

•            Backup childcare

•            Dependent care FSAs and HSAs

Paid Family Leave

Though FMLA leave helps to protect an individual’s job when needing to take leave to care for a dependent, it does not guarantee that the leave is paid. Paid family leave allows employees flexibility to take care of dependents while still bringing in an income. It reduces overall stress for the worker and allows employers to maintain a productive workforce.

Backup Childcare

Backup childcare, including in-home childcare when the employee is working from home, is a benefit some companies are beginning to offer working parents. It provides peace of mind for parents since it covers them if their regular childcare becomes unavailable for some reason.

Dependent Care FSAs and HSAs

Dependent care flexible spending accounts (FSAs) and HSAs are valuable benefits to employees since they allow them to save money on qualifying dependent care medical expenses. Similar to an employee’s FSA or HSA, expenses are covered on a pre-tax basis for the dependent care versions.

Benefits Brokers Can Help Navigate the Hybrid Work Environment and Employee Benefits

If you’re considering how to best support your workforce in a hybrid environment, a benefits broker might be able to help. Benefits brokers that specialize in employee benefits understand the ins and outs of the various hybrid work models and the types of employee benefits that work well in these environments. They also understand the need to abide by various local, state, and federal employment laws pertaining to benefits and can guide you to ensure you’re in compliance.

You don’t need to go it alone. At KBI, our team of employee benefits brokers are here to help. Don’t hesitate to contact us today for your hybrid work environment benefit needs.