Demand for non-medical benefits expected to grow 20% in the next five years

One-third of all employees and nearly half of millennials said their insurance benefits are more valuable to them since the beginning of the COVID-19 pandemic. (Photo: Shutterstock)

In the post-pandemic world, the demand for expanded benefits will not be a short-lived trend, a new report suggests. The new study by LIMRA and EY finds that non-medical workplace benefits will grow by 20% over the next five years, and said that hybrid work arrangements, growing diversity, and innovations in technology will all contribute to an increasing demand for benefits options.

“Our study finds three-quarters of employers (76%) believe their employees will expect a wider variety of benefit options in the future,” said Patrick Leary, corporate vice president and head of LIMRA Workplace Benefits Research. “Employers see benefits as a necessary tool to be able to compete in the war for talent. Despite 54% of employers reporting a decrease in revenue in the last year, the vast majority are not planning to cut back on benefits and almost half are considering offering a customized menu of benefits to help attract and retain talent.”