Perks and Benefits in 2023
The way we work has suffered dramatic changes in the past several years and, as a consequence, so did employee perks and benefits. Thinking beyond the traditional benefits package has become a necessity for most companies, which had to retain its best talent, attract new ones while at the same working to keep costs down.
Since many industries need to adapt to a wide variety of pressures in 2023, companies are reshaping once again their cost structure. That said, one important question many employees have is “To what degree will the benefits package change in 2023” ?
If there were one important “old fashioned” benefit which is here to stay, that is health insurance. Health is at the top of the list for most employees and this makes sense since we’ve just come out of a pandemic.
Besides health, flexibility is still the key word when it comes to what employees want. Most of those who had the chance to taste the new way of working want more of it, both in terms of space and in terms of time:
…a wider variety of places they can work from
… more flexible schedules
… a 4 day working week
… the possibility to blend work with their personal needs.
On the other hand, for employers, being able to offer a flexible work style is a way to attract and retain talent and redefining remote work policies is something most of the employers have on their agenda in 2023. This is a way of reinforcing their employer brand while integrating the lessons learnt in the past several years.
A holistic approach to wellbeing is another key benefit in 2023. This goes beyond simply receiving discounts at spas or gyms, something which is no longer sufficient given the high level of stress most employees deal with on a regular basis. In fact, during the pandemic the concept of wellness was redefined: it went beyond the physical aspect to include the mental one as well, with many companies offering mental health support to employees going through difficult periods. Unfortunately, the end of the pandemic didn’t mean the end of challenges people have.
According to Gallup, the percentage of workers who say they experience a lot of stress at work each day has reached 44%. Therefore, including a comprehensive concept of wellness in the perks and benefits offering is a necessity in 2023.
With many companies announcing job cuts, with a financial crisis looming and with interest and inflation rates skyrocketing, employees’ financial stress comes to add extra pressure on their mental health. This explains why financial wellness programs for employees are on the rise. Such programs may include consulting, financial training and financial guidance.
At the same time, any cost-saving benefit is welcomed: free meals, various discounts, tech gear or budgets to set up the home office, access to books and learning platforms are still in the books in 2023. One major advantage of such benefits is that it reduces the difference which arises between employees working in the office and those working remotely. Managing dispersed teams has been a challenge for most leaders and taking concrete steps to bring teams together will alleviate part of the pressures placed on managers’ shoulders.
Although during the economic crisis the training budget used to be cut, it seems that this time many companies are taking a different approach: learning and development is considered essential in 2023.
Why? With so many changes on the job market as well as in the organizational structure, reskilling and upskilling of the workforce has neve been more important. Besides offering training, companies have a wide range of instruments to prepare and equip their teams for the challenges that 2023 will inevitably bring: mentoring, leadership and talent development programs, internal mobility, coaching and scholarships are just some of the initiatives employers can launch within their organizations.
The potential recession in 2023 will definitely influence the benefits package. The employers’ offerings will highly depend on budgets, management mentality and the organization’s negotiation power. While there are some perks which can be left behind and unlimited vacation is one of them, most employees place their focus on health and wellness, as well as having a secure income. Nonetheless, they still want the freedom a flexible work model has to offer, if not for traveling around the world but for having more family time.