Oh No, It's Renewal Time.

Common Questions Employers Ask During Benefits Renewal—And How to Address Them

As benefits renewal season approaches, HR executives and employers often ask two key questions:

1. What are other companies similar to mine doing with their benefits?

2. What are employees looking for in today’s market?

   
   

These are critical considerations in an environment where competition for talent remains strong, and employee expectations continue to evolve. Based on our experience working with organizations across industries, we’ve identified eight key areas employees prioritize in their benefits packages. Today, we’ll focus on the top concern for both employers and employees and the answer will surprise no one: Affordability.

The Growing Importance of Affordability

Healthcare costs continue to rise, with the average per-employee expense increasing 3.2% in 2022—a slightly slower pace than inflation at 6.5% but still a significant challenge for budgets. As we move into 2024-25, this trend is expected to persist, requiring employers to strike a balance between offering competitive benefits and managing costs.

The good news? Many companies are choosing to enhance their benefits rather than reduce them, recognizing that a well-structured benefits package is crucial for recruiting and retaining top talent.

Strategies to Improve Affordability for Employees

Employers are taking proactive steps to ensure healthcare remains accessible while keeping their benefits packages attractive. Here are some of the most effective strategies:

• Multiple Plan Options: Offering a range of medical plans enables employees to choose the coverage that best suits their needs and budget this includes looking at non-traditional plan options such as Closed Network plans, HRA's and Level Funded Plans.

• Strategic Cost-Sharing: Implementing salary-based contributions ensures fairness, making healthcare more manageable for lower-income employees while maintaining affordability for the company.

• High-Deductible Health Plans (HDHPs) with Incentives: Many companies are increasing employer HSA contributions to help offset out-of-pocket expenses, making HDHPs a more viable and cost-effective choice.

  
  

Looking Ahead: More Employee Priorities to Address

Affordability is just one of the eight key benefits priorities we’ve identified based on what employees are seeking in today’s job market. If you are interested in the other key priorities, complete the form or send me an email and I will email the whitepaper to you.

If you're interested in learning more about these trends and how other organizations are adjusting their benefits strategies and how those might apply to you this renewal season, let’s connect.