Companies are looking at their benefits strategies in a serious way. A new Gallagher survey says 40% of employers have considered re-evaluating their benefits strategy or philosophy as a result of changing economic and business conditions. The survey found that employers are considering plan design changes (47%), vendor or carrier changes (42%) or increased employee cost-sharing (43%).
The survey also identified that 45% of employers have indicated that the current economic conditions have impacted their organization’s culture.
How has this manifested itself?
- Reported higher levels of stress and burnout among employees (70%)
- Reduced morale and employee engagement (51%)
- Increased workload due to staff shortages (50%), despite 51% of employers holding steady at their current workforce headcount
- Decreased job security or fear or layoffs (42%)
Also, when asked to rate overall sentiment about workplaces, 44% of people either felt neutral, negative or very negative—whereas, the outlook for the labor market for the next year was 65% neutral, pessimistic and very pessimistic.
In this context, nearly 30% of employers have increased salaries, with more than a quarter (26%) providing flexible work arrangements in response to labor market challenges. Recruiting efforts are also evolving, with 34% citing soft/human skills (e.g., communication teamwork, empathy) as the most critical sought in new hires, followed by adaptability (32%) and technical skills (21%).
Also, employers are addressing the skills gap by hiring skilled professionals (36%), upskilling current employees (51%), providing internal training (60%) and forging partnerships with educational institutions (21%).
