Future of Work: Mental Health Coverage is a Post-Pandemic Priority
A recent survey by the Society for Human Resource Management (SHRM) has found that mental health coverage and telemedicine or telehealth services are some of the most important benefits employers believe they can offer employees in 2022. SHRM’s annual benefits survey, released in June, was sent to U.S.-based SHRM members in January and February. Survey respondents represent a variety of industries and sectors, ranging in size from two to more than 25,000 employees.
The impact of Covid-19 is clear. 93% of respondents said they now offer telemedicine or telehealth benefits, a 20% increase from before the pandemic. Likewise, respondents offering mental health coverage hit an all-time high of 91%. The executive summary notes that “The strong prevalence of these benefits, even after businesses have returned to more normal conditions following the COVID-19 vaccine rollout,” suggests they will become “permanent fixtures.”
The next highest in the list of priorities are retirement savings and planning benefits, with 82% of employers saying they were important to offer, up from 55% in 2020/21. “Possibly serving as a proxy for recovering financial health, employers ranked retirement and savings benefits as among the most important types of benefits they can offer employees,” the summary notes. The vast majority of employers offer some type of retirement plan; 94% offered a traditional 401(k), and 68% offered a Roth 401(k). Just over half of employers automatically enroll new or existing employees in their company’s retirement plan, a figure that remains largely unchanged since the onset of the pandemic.
The survey is a clear reflection of the fact that employers are continuing to adapt to post-pandemic requirements by reshaping benefit plans. While mental health and retirement savings are top priorities, parental leave dropped back to pre-pandemic levels, with companies offering paid maternity leave down from 53% in 2020 to 35% in 2022. “Now that many businesses have returned to a more typical way of operating, employers seem to be dialing back on expanded parental leave opportunities,” the summary states, perhaps suggesting a drop in demand now that the parental pressures inherent in the pandemic have eased.
Benefits play a significant role in employees’ lives and can give organizations a competitive advantage in the race for talent. Creating the right package of benefits for your company is a challenge. To get it right, first, familiarize yourself with what your employees’ needs really are, then prioritize the benefits your company can realistically offer.