The COVID-19 pandemic has fundamentally reshaped how we live and work. As the world slowly emerges from this global health crisis, one area poised for significant change is employee benefits. The pandemic exposed gaps in the safety nets and support systems many employers provide. It brought issues like mental health, childcare, and flexible work to the forefront. And it accelerated existing trends towards a more holistic view of employee wellbeing.
So what will employee benefits look like in a post-pandemic world? Here are some key ways they may evolve in the coming years:
Even before the pandemic, mental health was a growing concern for employers. Nearly 1 in 5 U.S. adults live with a mental illness. Depression and anxiety result in over 200 million lost workdays each year. The collective trauma and isolation of COVID-19 only exacerbated these issues.
"The pandemic really shined a light on the importance of mental health," says Dr. Natalie Baumgartner, Chief Workforce Scientist at Achievers. "Employers can no longer treat it as an afterthought."
Look for mental health to take center stage in employee benefits moving forward. This may include:
Perhaps the biggest workplace shift during the pandemic was the mass transition to remote work. While some companies were already moving in this direction, COVID-19 forced it to happen almost overnight. And many employees don't want to go back.
Nearly 30% would take a pay cut of up to 5% to work remotely at least some of the time. Among millennials and Gen Z, that number rises to 42%. After a year of working from home, the idea of returning to a rigid 9-to-5 in the office isn't appealing.
"Flexible work is becoming a standard benefit, like health insurance or a 401k," says Brie Reynolds, Career Development Manager at FlexJobs. "Employers who want to stay competitive will need to offer it."
This could mean allowing fully remote work, shifting to a hybrid remote/in-office model, or simply providing more flexibility in terms of hours and schedules. The key is giving employees more control over when, where, and how they work.
The pandemic put a glaring spotlight on America's lack of paid family and medical leave. While the Families First Coronavirus Response Act (FFCRA) temporarily guaranteed some workers paid sick and family leave, those provisions have now expired. And the U.S. remains the only developed country without any permanent, national paid family leave policy.
But the desire for these benefits isn't going away. Employees are increasingly looking to their employers to fill in the gaps. Even before COVID-19, paid family leave was the most coveted employee benefit. And the pandemic has only intensified the childcare crisis working parents face.
In response, look for more employers to offer or expand paid family and medical leave policies. This could include paid parental leave for both mothers and fathers, caregiver leave to care for ill family members, and more paid sick time. Employers may also invest more in benefits like backup childcare, childcare subsidies, or even on-site daycares.
The idea of "wellness" at work used to be limited to things like gym memberships and smoking cessation programs. But there's a growing recognition that true employee wellbeing is about much more than just physical health.
"Wellness needs to be holistic," says Julia Goodman, Chief People Officer at Peloton. "It's physical, mental, financial, social, and purpose-driven. All of these elements are interconnected."
The pandemic highlighted how issues like burnout, stress, isolation, and financial insecurity can impact employees' overall health and productivity. In one survey, 49% of workers said their overall well-being declined after COVID-19.
In the post-pandemic world, expect to see wellness initiatives that address the whole employee. This could include:
The pandemic impacted every employee differently. Some faced mental health challenges. Others struggled with childcare. Many had financial difficulties. What employees needed from their benefits changed almost overnight. And those needs aren't likely to be uniform going forward.
"The future of employee benefits is personalization," says Stephanie Ling, Senior Director of Benefits at Salesforce. "Instead of one-size-fits-all programs, employers will need to offer more choices."
Think of it like a buffet or a menu of options employees can choose from based on their individual needs. A working parent may want childcare benefits, while a young professional may prioritize student loan repayment. An older employee might be more interested in retirement planning services.
Technology will play a key role in delivering this personalized experience. Artificial intelligence and data analytics can help employers understand what benefits different segments of their workforce want and need. They can also help employees navigate their options and make informed choices.
The pandemic also cast a spotlight on the precarious situation of gig workers, contractors, and other non-traditional employees. These workers are typically excluded from most employer-sponsored benefit plans. They often lack access to things like health insurance, paid leave, and retirement savings.
But with gig workers making up a growing share of the U.S. workforce — and playing an essential role during the pandemic — that's starting to change. In California, a new law requires employers to provide health insurance to certain contract workers. Several states are exploring portable benefits systems that would allow gig workers to accrue and maintain benefits even as they move between jobs.
Even without legislative mandates, some employers are starting to offer benefits to non-traditional employees. Uber, for example, has partnered with insurers in some states to make subsidized health plans available to drivers. DoorDash provides accident insurance for its delivery workers.
As the lines continue to blur between traditional full-time employees and gig workers, contractor benefits will become a bigger part of the conversation. Employers who want to attract and retain top talent in all forms will need to find ways to support all workers.
One of the most dramatic shifts during the pandemic was the explosive growth of telemedicine. With doctor's offices closed and hospitals overwhelmed, virtual care became a necessity. And usage skyrocketed as a result.
In 2020, nearly 1 in 4 healthcare visits among privately insured patients were conducted via telehealth — up from just 0.3% the year before. And while those numbers may level off somewhat as the pandemic recedes, the shift towards virtual care is likely here to stay.
"Telemedicine is not going away," says Dr. Donna O'Shea, Chief Medical Officer of Population Health at UnitedHealthcare. "Patients have seen how convenient and effective it can be. They're going to expect and demand access to virtual care options moving forward."
Employers play a big role in driving telemedicine adoption, as most people access it through their employer-sponsored health plans. In the post-pandemic world, look for telemedicine to become an even more central pillar of those plans. Employers may offer reduced or waived co-pays for virtual visits, or even require telemedicine as a first stop before seeing a doctor in person.
Virtual care will also likely expand beyond just primary care and urgent care to include areas like mental health, dermatology, physical therapy, and chronic disease management. And we may see more employers investing in on-site virtual care kiosks or subsidizing at-home diagnostic devices to make telemedicine even more accessible and convenient.
The world of work looks very different than it did before the pandemic. And employee benefits will need to evolve to meet the needs of a transformed workforce.
The post-pandemic future will likely be one where mental health is no longer stigmatized, but actively supported. Where flexible work is the rule, not the exception. Where paid leave and family support are seen as critical infrastructure. Where wellness is about the whole human, not just physical health. Where benefits are personalized and adaptive to individual needs. Where non-traditional employees are included and protected. And where virtual care is a mainstream option.
Some of these changes were already in motion before COVID-19. But the pandemic has accelerated them and created a once-in-a-generation opportunity to reimagine employee benefits from the ground up. The employers who seize this moment won't just boost recruitment and retention. They'll create a healthier, more resilient, and more equitable workforce for the future.
The coming years will bring more change and disruption. Virtual reality retraining, skills-based hiring, and AI-powered platforms may all shape the world of work and benefits. But if there's one thing the pandemic has taught us, it's the importance of supporting employees' core needs. Not just as workers, but as human beings. That's one lesson that will endure even as the virus fades. Because at the end of the day, the most meaningful benefit an employer can provide is making people feel valued, cared for, and empowered to bring their best selves to work.
