Employers: Use these guidelines to create benefits for the modern workforce

Business Journals

20 hours ago

It's impossible to forget the disruption of the COVID-19 pandemic. It reshaped how we live and work, forcing companies to rapidly adapt to remote models and prioritize health and safety in new ways.
The crisis made one thing clear for employers: Affordable, meaningful health care benefits are vital — not only for supporting employees but also for ensuring long-term business stability.
In the post-pandemic workplace, high-deductible health plans (HDHPs) continue to present challenges, especially for hourly and lower-wage workers. Recruiting and retaining top talent now hinges on offering benefits that go beyond basic coverage — they must be affordable, accessible and relevant. Employers are shifting from cutting costs to investing in benefits that support the whole person.
A new framework: Mind, body, money
To meet the demands of today's workforce, I use a simple yet powerful framework to guide benefits strategy: Mind, body and money. These three pillars reflect the needs of employees and can help employers design plans that truly make a difference.
1. Mind: Prioritizing mental health
Mental health challenges spiked during the pandemic, and they haven't gone away. Today, one in five adults report struggling with mental health, while nearly a third say they don't have a primary care provider (PCP), leading to overall poor well-being. Telehealth has provided a lifeline, but access to in-network mental health providers remains limited. The need for robust mental health support has never been greater, and addressing it must be a priority.
2. Body: Access and prevention
Roughly a third of Americans lack a primary care provider (PCP), leading many to rely on urgent care instead. This not only drives up claim volume and employer costs but also increases the risk of chronic conditions going undetected. Consider this: nearly 40% of Americans are pre-diabetic, and managing diabetes can cost $8,000-$10,000 per person annually. For an employer with 50 employees, that could mean $200,000 in preventable expenses.
It's critical to ensure employees have access to high-quality preventive care at a price they can afford. Prevention isn't just a health strategy — it's a financial one.
3. Money: Real incentives that work
A recent survey by Imagine360 found that 25% of employees would accept a pay cut in exchange for better benefits. That's a powerful signal. But incentives must go beyond surface-level perks like gym memberships. Instead, they should encourage real engagement with health care — rewarding participation in preventive care, screenings and chronic condition management.
At the same time, health care costs are climbing fast — especially when it comes to prescriptions. GLP-1 medications are up 200%-300% year over year, prompting employers to reassess pharmacy strategies. Real savings start with aligning incentives to promote smart utilization.
The retirement factor
Older employees are increasingly delaying retirement — not because they want to, but because they can't afford to stop working.
28% regularly find themselves out of money before payday arrives.
60% of full-time employees are stressed about finances.
56% of financially stressed employees spend three or more hours a week thinking about finances.
Consultants must help employers address this early with smart retirement planning tools like 401(k) plans and Health Savings Accounts (HSAs). Financial wellness isn't a separate issue — it's deeply tied to mental and physical health. Supporting employees across all three areas helps ensure smoother, more cost-effective transitions into retirement.
Implementing reference-based pricing, a sustainable cost strategy
Reference-Based Pricing (RBP) has evolved significantly over the years. What was once viewed as a heavy lift for companies and employees is now gaining momentum as a sustainable solution to out-of-control health care costs, and a great experience for employees. Like HSAs, RBP has continued to garner more adoption — and it's delivering real results. With rising health care 'tariffs,' more employers are turning to RBP to regain control.
For example, a nursing home with 800-900 employees implemented RBP and saw health care costs drop by 40%. Four years later, they've maintained those savings, and employees have embraced the model.*
RBP is particularly effective for companies with high turnover or low plan engagement. It allows employers to lower deductibles and build a more budget-neutral benefits strategy. While switching any health plan carrier requires change management, the right consultants can guide the process and help ensure both employer and employee success.
What consultants must do now
It's time for consultants to step up. That means vetting vendors rigorously and recommending only those that align with the employer's core goals — whether it's improving retention, reducing costs or boosting care quality.
Employees care deeply about their take-home pay and their health. If a benefit strategy isn't working for them, they'll leave. Strong benefits aren't nice to have — they're a competitive advantage and a critical part of your business strategy.
Want to talk about building a smarter benefits strategy that works for your team and your budget? Connect with me on LinkedIn.