Oct 20, 2021
An Aflac survey reveals that the COVID-19 pandemic is driving benefit choices among employees; anxiety and burnout is widespread; and many employers underestimate their employees’ financial challenges.
Forty-four percent of employees have purchased at least one new health-related benefit in response to the COVID-19 pandemic. They’re looking to offset financial burdens they have experienced or feared over the past 17 months, said Matthew Owenby, Chief Human Resources Officer at Aflac. He added that financial vulnerability will continue to be a concern during this year's open enrollment season as Americans face rising health care expenses.
Those who have tested positive for COVID-19 are more likely to purchase at least one new health-related benefit:
| Diagnosed with COVID-19 | Not Diagnosed with COVID-19 | |
|---|---|---|
|
Life Insurance |
38% | 16% |
|
Hospital Insurance |
29% | 9% |
|
Critical Illness Insurance |
26% |
12% |
|
Mental Health Services |
24% | 10% |
Rising Benefit Costs Are Affecting Employers
Sixty percent of employers saw rising benefit costs over the past year, which affected their ability to enhance their benefit programs, award bonuses, and offer raises. But most employers still plan to maintain their existing health insurance coverage.
A Disconnect Between Employers and Employees
Seventy-six percent of employers say employees are satisfied with their benefits package, but only 61% of employees agree. Eighty-one percent of employers say their employees can financially meet their health care obligations. However, 46% of employees say they would not be able to pay more than $1,000 for out-of-pocket medical expenses, and 52% say they couldn’t go more than one month without a paycheck.
Anxiety & Burnout Are Widespread
Half of employees report high anxiety about out-of-pocket health care costs. Forty-two percent of essential workers say that mental health issues have affected their job performance over the past year compared to 24% of non-essential workers. Anxiety is highest among the younger generations. Also, burnout is affecting workers across many demographics:
- 67% Women
- 56% Men
- 64% Gen Z
- 60% Millennials
- 59% Those who have been affected by a COVID-19 diagnosis
- 58% Essential workers
Owenby said that it’s as important as ever for employers to pay close attention to their employees’ wellness and mental health and offer the benefits they need to feel protected and valued. This, in turn, helps improve productivity, enhance engagement, and reduce stress.
