While there have been various economic impacts in recent years, employers and employees alike are feeling significant effects from inflation and rising health care costs. Because of these effects, employees’ mental health is more vulnerable, and many are feeling stressed. As a result, employers are making mental health benefits a higher priority.

Retirement is a significant milestone for all employees that often requires careful planning. Unfortunately, many employees have fallen behind in their retirement goals. Costs of living increases, student debt and low salaries are making it difficult for employees to adequately save for retirement, according to a recent study by financial services provider Teachers Insurance and Annuity Association and global customer agency C Space.

Communication in the workplace is key. When it comes to employee benefits, proper communication helps employees recognize the true value of their benefits, which can lead to an appreciation of the company’s investment in their health and well-being. Employees who understand and value their benefits are more likely to utilize them.

The Kaiser Family Foundation reported that nearly half of Americans struggle to afford health care, with about 4 in 10 saying they’ve delayed or gone without health care due to cost. Unfortunately, medical costs are projected to continue increasing. Financial services organization Peter G. Peterson Foundation found that, on average, health care costs U.S. households $12,900 per person per year.

Employers have been forced to navigate and respond to several challenges over the last few years, including the COVID-19 pandemic, a tight labor market, rising health care costs, inflation and a potential recession. These challenges have pushed many organizations and their employees to their limits.

The current labor market presents challenges for employers looking to attract and retain talented employees. Despite recent highly publicized layoffs, especially in the tech sector, the unemployment rate has remained relatively low. This makes replacing talent challenging. Losing talent is also expensive, making retention critical for the success of every employer.

A survey by telecommunications service provider Ringover found that nearly 3 in 4 (74%) U.S. workers suffered from burnout and associated symptoms (e.g., feeling tired, drained, detached or helpless) due to their current job position. These feelings increased the risk of turnover, with nearly two-thirds (64.25%) of surveyed employees reporting they had considered leaving their jobs due to burnout.

Workplace well-being transforms every day, and many organizations have a renewed focus on employees as people. Employees want to be treated like human beings—not just resources. More than ever, workers want to belong in the workplace and feel recognized, appreciated and safe. Correspondingly, when employees’ well-being is thriving, they often take fewer sick days, increase their job performance, manage stress better and experience less burnout, all of which directly impact organizations.

Organizations are increasingly utilizing artificial intelligence (AI) in employment-related decisions. According to the Society for Human Resources Management, around 25% of organizations use AI for HR processes such as recruitment, hiring, performance evaluations and retention determinations.

Many employees continue to feel financially strained because of inflation. With open enrollment fast approaching, inflation could impact the choices employees make when it comes to their benefits. Specifically, employees are likely to consider which benefits matter the most and how to optimize the money they spend on those offerings.

While federal law generally does not prohibit discrimination against workers because of their weight and height, a growing number of states and localities have or are considering passing laws to prohibit workplace weight and height discrimination. Even without mandatory legal protections or requirements, employers can consider how best to address weight and height discrimination in the workplace.

Health care costs are expected to grow 7% in 2024 due to rising pharmaceutical expenses driven by specialty drugs and insurers increasing rates in response to inflation, according to an annual report from professional services firm PricewaterhouseCoopers (PwC). This trend is higher than 2022’s and 2023’s projected medical cost rates, which were 5.5% and 6%, respectively.

Artificial intelligence (AI) has created revolutionary advances across many industries. Now, it’s paving its way as a tool to self-diagnosis medical conditions or get answers to health-related questions. Self-diagnosis is a growing practice, as people’s primary access point for health care information has shifted from professionals to the internet.

Many employees need help with open enrollment. This is particularly true among younger workers, who typically have less experience selecting benefits than older generations that have been in the workforce longer. A study by insurance and employee benefits provider MetLife found that 26% of Generation Z (Gen Z) employees are insecure about making benefits decisions.

As summer comes to an end and fall begins, employees with school-age children may have increased caretaking responsibilities as their kids begin a new academic year. In addition to other day-to-day challenges, parents are now dealing with school pick-up and drop-off, unexpected sick days and other occurrences that could affect their work-life balance.

Fewer employees are confident that they understand how their health care plans work in 2023 than last year, according to the 2023 Healthcare Literacy Report by benefit solutions provider Optavise. Notably, this confidence is linked to satisfaction; 90% of employees who said they were extremely confident they understood their plan reported plan satisfaction, compared to just 13%-14% of employees who weren’t confident at all.

Voluntary benefits are becoming increasingly important to employees as they focus on their physical, mental, social and financial health. As a result, many employers have expanded their voluntary benefits offerings to address employees’ needs and improve their attraction and retention efforts.

As labor challenges continue throughout the year, more employers are exploring skills-based hiring to help them compete for job candidates and expand talent pools. While specific qualifications may be valuable for some roles (e.g., knowledge roles requiring degrees and licensure) or industries (e.g., health care and education), HR professionals and senior leaders may benefit from considering candidates based on desired skills rather than experience or education.

The labor landscape was undoubtedly a roller coaster in the first half of 2023, and employers are still along for the ride. During the past year, the market experienced a record number of employee quits, a jump in talent shortages and increased workplace demands from workers—many of whom had the upper hand in employment negotiations.

When an employee welcomes a child into the world, it’s often a joyous occasion. It also comes with significant responsibilities, including ensuring the child’s health and well-being. Securing health insurance for newborns and newly adopted children is a crucial step toward safeguarding their health and providing the employee and their family financial protection against unexpected medical expenses.