The future of employee benefits: 3 Predictions for 2022

What does 2022 have in store for the future of employee benefits? Here are our top 3 predictions, and how companies can prepare for them using an ESG strategy.

ESG is a framework that considers environmental, social, and governance elements alongside monetary factors, and can be thought of as ‘Planet,’ ‘People’ and ‘Processes.’

1. The Great Retention

‘The Great Resignation’ is on everyone’s radar with one in four UK workers planning to job change.

How can HR turn ‘The Great Resignation’ into ‘The Great Retention’?

With the employment market reaching an all-time high, and in favour of job seekers, companies need to look internally at their employee benefits and reward. Realigning their people strategies to ensure they meet the needs of a diverse and inclusive workforce.

An equality, diversity and inclusion (ED&I) strategy will be paramount, with 92% of millennials being more likely to engage with a diverse and inclusive employer.

Many organisations already have ED&I high on their agenda and are driving this forward. By setting up working groups, providing mandatory ED&I training and offering diverse and inclusive corporate healthcare provisions. Our ED&I group is called ‘EDIth’!

Introducing ESG strategies and benefit packages can further support a company’s effort to meet the ethical and sustainable values of their people. To engage employees, build stronger staff relationships and improve retention.

The challenge will be sustaining these efforts and ensuring that this focus isn’t temporary. But with an awareness of social injustice and climate change being at the forefront employers can’t afford to let the progress slip.

2. Net Zero commitments will be expected

Known as the sustainability generations, Millennials and Gen Z are the largest segment of today’s workforce. They expect their green values to be reflected in the workplace and employers to take a firm position on issues that matter.

A recent Mckinsey poll revealed that 89% of employees see it as necessary for their employer to make sustainability a priority.

Next year, companies will increase their focus on corporate social responsibility by introducing net zero incentive and becoming B Corp certified.

3. HR will adopt ESG technology

With hybrid working here to stay, creating a digital employee experience is becoming increasingly important. HR leaders will look to employee benefits platforms that do good for the planet and well as being accessible and easy to use, for both their employees and themselves.

Current employee technology is underwhelming and engagement is low. HR leaders need to think outside the box and provide the digital employee experience their employees actually want.

Gamification, all-in-one place employee benefit platforms, and incorporating employee values like net zero ambitions can achieve this. By giving employees the incentive to keep checking their benefits, pensions, carbon footprint, wellbeing incentives, and other reward offerings, that HR works so hard to put in place.

With this technology adoption, companies will bridge the gap to attract and retain top talent.

How to implement an ESG employee benefits platform

Implementing ESG practices and processes can be a daunting step. Our platform, Lumina, includes your choice of many ESG products and services, plus your flexible employee benefits platform, HR Information System, online payslips, and other work-related technology, so it’s all in one place. Good for people, good for the planet.

Book a demo