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Voluntary Benefits Thrive in Times of Uncertainty 

December 3rd, 2020

By Emily Rose

Human resources and benefits professionals spent much of 2020 creating ways to keep their employees employed and engaged during this unprecedented time. 2020 brought a global pandemic, of course, but we also saw natural disasters, an unexpected housing boom, and dramatic social change. While these matters created new obstacles in the workplace, employers were given the unique opportunity to meet employees’ needs through a customizable mix of employer-sponsored and voluntary benefits. 

For many years, healthcare and other core benefits such as life, disability, and dental insurance have been the top focus of the human resource community. While many employers have tested the waters of voluntary benefits in recent years, 2020 brought clear evidence that employees not only need access to diverse benefit options but also desire a variety of options that allow for a truly customized benefits package. 

Shortly after the onset of the pandemic, we saw an increase in employers breaking the traditional model of only offering benefits during open enrollment. Some of our clients saw their employees facing uncertainty and wanted to provide them with opportunities to enroll in voluntary legal and identity theft protection during a defined off-cycle enrollment period. The result was employees gaining access to critical coverages such as Wills and health care directive preparation, and a renewed sense of confidence in their employer for offering these benefits during an uncertain time. 

Employees using these benefits saw their value almost immediately. From March-April, during the start of the pandemic, we saw a 44% increase in estate planning requests, mostly Will preparation, from LegalShield plan participants. Aggressively low home mortgage rates and the desire to escape metropolitan areas for the more socially distanced safety of the suburbs have propelled an unexpected increase in real estate transactions and housing construction. The PPLSI ,  a suite of leading indicators of the economic and financial status of U.S. households and small businesses, shows plan member usage of services related to these economic indicators, at an all-time high.

As our world continues evolving into a more contactless society, our mobile app experience provided high levels of satisfaction as plan participants were able to connect with a provider law firm or identity theft professional at the touch of a button. Participants in our LegalShield family plan can contact their provider law firm on our mobile app for a consultation on Estate Planning to get the process started.  We also made available to all of our clients’ employees COVID-19 digital resources, microsites, and videos to help educate employees on the importance of these benefits during this time.

Even for those employers who did not take advantage of making these benefits available off-cycle, we are seeing a significant increase in employers rolling these benefits out to employees in the 4th quarter, for early 2023 effective dates. The value of these benefits is appreciated now more than ever:  Employees have a pronounced need for them, and they are easy for HR teams to implement. We expect to see voluntary benefits continue to gain importance in 2023 and beyond. 

Four Anticipated Voluntary Benefit Trends for 2023:

1. Growth in popularity of voluntary benefits; specifically legal and IDT plans

Before the pandemic, nearly 50% of employees wanted their employers to provide them with these benefits and 61% of employers said their company would consider offering legal or identity theft protection as part of their benefits package. After the events of 2020, which heightened employees’ awareness of personal legal needs, we anticipate the demand for these benefits to continue to increase in 2021.

2 . Higher interest in off-cycle enrollments

It is important to note that even before the pandemic, we saw a growing interest in off-cycle enrollments. Given their proven value, most acutely during uncertain times, interest has accelerated at a higher volume. We anticipate a healthy approach to off-cycle enrollments next year as employers want to highlight the value of these benefits away from their core benefit offerings. This allows employers to focus communication efforts on a select number of benefits, which decreases the chances of employees overlooking the value being provided to them. 

3. Increase employer engagement in voluntary benefit communications

While employee interest in voluntary benefits continues to increase, so does employer interest in more effective communications. This year, we have seen a heightened awareness of the importance of educating employees on the value and practicality of legal and identity theft coverage. Employers are keen on talking to employees and ensuring that benefits communications are tailored to their specific life stage, a trend we anticipate will continue into the New Year. 

4. Greater demand/need for contactless services

Service delivery for voluntary benefits has always been critical and a true differentiator between benefit providers. Before the pandemic, over 70% of employers felt strongly that a mobile app that provided direct access and convenient features such as a monthly credit score tracker was an important plan feature. As an already digital society, the pandemic further highlighted our demand and need for contactless services. We project a continued focus on virtual interaction between participants and their benefit service providers.

Indeed, 2020 was a year unlike any other in our lifetime. However, with heightened employer dedication, employee perseverance, and an evolving digital world, employee benefits in 2023 will emerge as nimbler and more forward-thinking, and result in higher employee satisfaction than ever before. 

Pre-Paid Legal Services, Inc. (“PPLSI”) provides access to legal services offered by a network of provider law firms to PPLSI members through membership-based participation. Neither PPLSI nor its officers, employees or sales associates directly or indirectly provide legal services, representation, or advice. See a legal plan for complete terms, coverage, amounts and conditions. IDShield is a product of PPLSI. IDShield provides access to identity theft protection and restoration services. IDShield plans are available at individual or family rates. All Licensed Private Investigators are licensed in the state of Oklahoma. An Identity Fraud Protection Plan (“Plan”) is issued through a nationally recognized carrier. PPLSI is not an insurance carrier. This covers certain identity fraud expenses and legal costs as a result of a covered identity fraud event. See a Plan for complete terms, coverage, conditions, limitations, and family members who are eligible under the Plan.