# Transforming Employee Benefits Post-COVID: Five-Year Insights
## How the Pandemic Revolutionized Employee Benefits
When COVID-19 was declared a pandemic in March 2020, it created an immediate and profound impact on employee benefits. Organizations quickly shifted priorities to provide:
– Access to paid time off for illness and caregiving
– Support with childcare as schools closed nationwide
– Financial education resources in an uncertain economy
– Mental health resources to address growing wellness concerns
According to Kristina Welke, vice president and head of strategy at New York Life, “The pandemic significantly shifted the benefits landscape.” This transformation wasn’t limited to specific offerings—it fundamentally changed how benefits are strategized, delivered, and administered.
### The Mental Health Awakening
One of the most significant benefits transformations came in the area of mental health support. Cindy Ryan, head of HR at MassMutual, notes that “the topic of workforce mental health and this type of benefit rose in importance and became destigmatized during the pandemic.”
This prioritization was essential, as the World Health Organization reported that global anxiety and depression increased by a staggering 25% in just the first year of the pandemic. MassMutual, which employs 6,200 workers in the U.S., had offered mental wellness benefits before COVID, but these became “incredibly important” during the crisis.
The pandemic created a fundamental shift in how organizations approach mental health:
– Expanded EAP access and utilization
– Introduction of stress and burnout reduction programs
– Leadership awareness about multiple wellness drivers
– Recognition of benefits as essential to addressing mental health
## The Collision of Talent Needs and Benefits Strategy
As labor trends like the Great Resignation emerged, employers gained new perspective on benefits’ true value. “When there was this fight for talent, employers realized how much employees are really valuing their benefits,” explains Welke. “To have productive employees at work, they saw they had to bring forward the right programs for them.”
This realization led many organizations to expand their benefits portfolio to include:
– Financial wellbeing offerings like student loan repayment
– On-demand pay options for financial flexibility
– Expanded telehealth services
– Reproductive care benefits
Mark Stelzner, founder of advisory firm IA, notes that understanding specific employee needs became increasingly critical. MassMutual discovered the high importance younger workers place on mental health benefits—last year, nearly half of their workforce utilized mental health services, with Gen Z and millennial employees being the most frequent users.
“This focus on the individual and their unique needs came into sharp relief during a time of shared trauma and deeply personal impacts,” Stelzner explains.
## Transforming Benefits Design and Delivery
The pandemic prompted many HR leaders to rethink benefits with low utilization, such as employee assistance programs. Some organizations rebranded these offerings, while others completely reinvented their approach to employer-provided benefits.
The focus shifted dramatically from “Here are our programs. Use them if and when needed” to a personalized approach “driven by your specific preferences and attested circumstances,” according to Stelzner.
### Technology-Driven Benefits Administration
This personalization trend created challenges for benefits teams now supporting twice as many programs as before the pandemic. In response, technology solutions have become essential:
– APIs have “blown up” for clients at New York Life
– Manual work has been reduced through automation
– Data access has become more seamless
– “Smart connectivity” approaches use technology to help administrators work more efficiently
Benefits portals have seen “drastic” increases in usage for everything from filing claims to employee education. New York Life reported a 106% increase in online claims filing through its portal over the past year, with 87% of users reporting satisfaction with the technology.
“It’s about meeting people where they are,” says Welke, highlighting tools like My Leave Guide and My Benefits Assistant that answer employee questions and provide support resources with minimal effort.
## The Future of Benefits After COVID
Looking ahead, benefits professionals predict several key trends will continue to shape the landscape:
### Simplification and Ease of Use
Welke forecasts that benefits carriers and vendors will continue to “simplify processes” and prioritize usability as a competitive advantage. “It’s going to be about embracing the right capabilities, smart connectivity and being data-driven to drive efficiencies and experience,” she explains.
### AI-Powered Personalization
“We can’t look ahead without mentioning AI, and benefits teams are on the precipice of a material leap forward in hyperpersonalization,” says Stelzner. This advancement will be powered by:
– Employee data leveraged with privacy protections
– Large language models with authoritative benefits content
– Integration of previously disconnected programs
– Customized guided processes and engaging experiences
### Continued High Expectations
Employees now have elevated expectations for their benefits experience—which employers have largely met successfully. A New York Life survey found that 75% of employees believe the pandemic brought necessary changes to the benefits landscape.
## Key Takeaways for Benefits Leaders
1. **Mental health benefits** have become essential offerings with decreased stigma, particularly for younger workers
2. **Personalization** is now the standard approach rather than one-size-fits-all benefits packages
3. **Technology solutions** are critical for managing expanded benefits portfolios efficiently
4. **Data-driven decisions** help organizations understand specific employee needs and preferences
5. **Adaptability** remains crucial as benefits leaders prepare for future disruptions
While the pandemic created unprecedented challenges for HR and benefits professionals, it ultimately better prepared employers to evolve their offerings in a changing world. As Welke concludes, “COVID opened all of our eyes to the need to keep our finger on the pulse of what’s happening in the employee population… Things will continue to evolve, but I think we’re in a much better spot today as a result of the last five years to weather that next storm.”
# Transforming Employee Benefits Post-COVID: Five-Year Insights
## How the Pandemic Revolutionized Employee Benefits
When COVID-19 was declared a pandemic in March 2020, it created an immediate and profound impact on employee benefits. Organizations quickly shifted priorities to provide:
– Access to paid time off for illness and caregiving
– Support with childcare as schools closed nationwide
– Financial education resources in an uncertain economy
– Mental health resources to address growing wellness concerns
According to Kristina Welke, vice president and head of strategy at New York Life, “The pandemic significantly shifted the benefits landscape.” This transformation wasn’t limited to specific offerings—it fundamentally changed how benefits are strategized, delivered, and administered.
### The Mental Health Awakening
One of the most significant benefits transformations came in the area of mental health support. Cindy Ryan, head of HR at MassMutual, notes that “the topic of workforce mental health and this type of benefit rose in importance and became destigmatized during the pandemic.”
This prioritization was essential, as the World Health Organization reported that global anxiety and depression increased by a staggering 25% in just the first year of the pandemic. MassMutual, which employs 6,200 workers in the U.S., had offered mental wellness benefits before COVID, but these became “incredibly important” during the crisis.
The pandemic created a fundamental shift in how organizations approach mental health:
– Expanded EAP access and utilization
– Introduction of stress and burnout reduction programs
– Leadership awareness about multiple wellness drivers
– Recognition of benefits as essential to addressing mental health
## The Collision of Talent Needs and Benefits Strategy
As labor trends like the Great Resignation emerged, employers gained new perspective on benefits’ true value. “When there was this fight for talent, employers realized how much employees are really valuing their benefits,” explains Welke. “To have productive employees at work, they saw they had to bring forward the right programs for them.”
This realization led many organizations to expand their benefits portfolio to include:
– Financial wellbeing offerings like student loan repayment
– On-demand pay options for financial flexibility
– Expanded telehealth services
– Reproductive care benefits
Mark Stelzner, founder of advisory firm IA, notes that understanding specific employee needs became increasingly critical. MassMutual discovered the high importance younger workers place on mental health benefits—last year, nearly half of their workforce utilized mental health services, with Gen Z and millennial employees being the most frequent users.
“This focus on the individual and their unique needs came into sharp relief during a time of shared trauma and deeply personal impacts,” Stelzner explains.
## Transforming Benefits Design and Delivery
The pandemic prompted many HR leaders to rethink benefits with low utilization, such as employee assistance programs. Some organizations rebranded these offerings, while others completely reinvented their approach to employer-provided benefits.
The focus shifted dramatically from “Here are our programs. Use them if and when needed” to a personalized approach “driven by your specific preferences and attested circumstances,” according to Stelzner.
### Technology-Driven Benefits Administration
This personalization trend created challenges for benefits teams now supporting twice as many programs as before the pandemic. In response, technology solutions have become essential:
– APIs have “blown up” for clients at New York Life
– Manual work has been reduced through automation
– Data access has become more seamless
– “Smart connectivity” approaches use technology to help administrators work more efficiently
Benefits portals have seen “drastic” increases in usage for everything from filing claims to employee education. New York Life reported a 106% increase in online claims filing through its portal over the past year, with 87% of users reporting satisfaction with the technology.
“It’s about meeting people where they are,” says Welke, highlighting tools like My Leave Guide and My Benefits Assistant that answer employee questions and provide support resources with minimal effort.
## The Future of Benefits After COVID
Looking ahead, benefits professionals predict several key trends will continue to shape the landscape:
### Simplification and Ease of Use
Welke forecasts that benefits carriers and vendors will continue to “simplify processes” and prioritize usability as a competitive advantage. “It’s going to be about embracing the right capabilities, smart connectivity and being data-driven to drive efficiencies and experience,” she explains.
### AI-Powered Personalization
“We can’t look ahead without mentioning AI, and benefits teams are on the precipice of a material leap forward in hyperpersonalization,” says Stelzner. This advancement will be powered by:
– Employee data leveraged with privacy protections
– Large language models with authoritative benefits content
– Integration of previously disconnected programs
– Customized guided processes and engaging experiences
### Continued High Expectations
Employees now have elevated expectations for their benefits experience—which employers have largely met successfully. A New York Life survey found that 75% of employees believe the pandemic brought necessary changes to the benefits landscape.
## Key Takeaways for Benefits Leaders
1. **Mental health benefits** have become essential offerings with decreased stigma, particularly for younger workers
2. **Personalization** is now the standard approach rather than one-size-fits-all benefits packages
3. **Technology solutions** are critical for managing expanded benefits portfolios efficiently
4. **Data-driven decisions** help organizations understand specific employee needs and preferences
5. **Adaptability** remains crucial as benefits leaders prepare for future disruptions
While the pandemic created unprecedented challenges for HR and benefits professionals, it ultimately better prepared employers to evolve their offerings in a changing world. As Welke concludes, “COVID opened all of our eyes to the need to keep our finger on the pulse of what’s happening in the employee population… Things will continue to evolve, but I think we’re in a much better spot today as a result of the last five years to weather that next storm.”