In a labor market where nearly 90% of organizations say they're struggling to fill positions, a forward-thinking benefits program can be a powerful advantage. The right benefits strategy can also help retain existing staff. A 2021 survey from HealthEquity found that employees whose employer expanded benefits during the pandemic reported dramatically higher satisfaction with their company.

To help employers and benefits professionals make the most of the new year – and these new opportunities – here are six predictions for the employee benefits space in 2022.

1. Employee health will be a top priority and organizations will encourage it through offerings like incentive HSA dollars for wellness activities.

It's no surprise that during a global pandemic, employees' health and wellness should take center stage. More than half (56%) of organizations plan to increase spending on physical and mental health support for employees, according to the Risk Outlook 2022 report from International SOS.

One way employers may invest in employee health is through the offer of Health Savings Account (HSA) incentive contributions for wellness activities. HSAs have already proven to be highly valued assets in the time of pandemic. More than three-quarters (77%) of employees told HealthEquity in 2021 that having an HSA gave them peace of mind over the past year.

By providing HSA incentives for employees to improve their health and wellbeing, organizations can tap into positive feelings about HSAs and leverage them to encourage activities like exercise, movement, and self-care.

2. Special attention will be paid to mental wellness and supporting mental health programs.

Employers have also prioritized mental wellness as an important subset of overall employee health. According to Mercer's 2021 Health on Demand report, nearly 60% of employees currently report some level of stress; one in four say they're highly or extremely stressed. To address those startling statistics, many employers will turn to their benefits program.

One important offering is an employee assistance program (EAP). EAPs help connect employees with resources for stressors like depression, anxiety, alcohol or substance abuse, or legal problems. These services are provided through stand-alone vendors or providers who are part of company health insurance plans. The Kaiser Family Foundation's 2021 Employer Health Benefits survey reports that 16% of employers with more than 5,000 employees have already implemented this powerful benefit since the start of the pandemic.

The Mercer report makes clear that employers who address mental health may be rewarded by their employees. Nearly half (48%) of employees rated employer support for mental health as highly or extremely valuable, and 42% say they're more likely to stay at their current organization because of their mental health benefits.

3. Out-of-pocket costs will rise. To save money, employees will do more price-shopping and turn to their HSAs to pay for newly qualified items like over-the-counter medicine.

The increased demand for healthcare, coupled with the ongoing rise in deductibles, will mean employees pay more for medical services and products in 2022. According to a Kalorama Information report, out-of-pocket costs are set to grow by nearly 10% through 2026, with average cost increases of between $40 and $50 each year.

In an effort to save money, employees may engage in price shopping for healthcare. A number of price transparency tools have gained traction in recent years, and a HealthEquity survey shows that 58% of individuals already compare prices before selecting a service provider.

Employees are also likely to turn to their HSAs for relief from increased costs. HSAs were always a great way to save and spend tax-advantaged money on healthcare, but the 2020 CARES Act made them even more valuable. The legislation added menstrual care products to the list of items people can buy with their HSA and removed the requirement that individuals have a doctor's note to purchase over-the-counter medicine. The ability to pay for these items with tax-advantaged funds can be powerful.

4. More engagement with HSAs will also result in increased investment of HSA funds.

As employees interact more with their HSAs, they're likely to increase activities that can help grow their funds. Already, a HealthEquity survey shows that employees have responded to the pandemic by increasing their contributions to their accounts.

Another, more powerful, method to potentially raise HSA balances is to invest funds. HSA data from Devenir shows account holders who invest their funds have an average balance nearly seven times higher than that of non-investors. Since the pandemic, 37% of employees have increased the amount of HSA funds they hold in an investment account.

With the value of HSAs becoming more and more apparent, that percentage is likely to grow in 2022.

5. Remote work will prompt the rise of flexible and nontraditional benefits and require better employee communication.

It's clear that remote work is here to stay. The percentage of employees working at home either part- or full-time has remained relatively steady, hovering near 45%. Many employers have also embraced flexibility, allowing employees choice over where and what hours they work.

To succeed in 2022, employers will adjust their benefits programs to reflect this new reality. Rather than offer health insurance plans with a local provider network, employers may choose plans with a national network to support free-roaming employees. Standard offerings like commuter benefits may also need adjustment; with many employees working in an on-site/remote hybrid model, individuals will need more flexibility in when and how they use their benefits. The increased focus on mental health and work/life balance discussed in prediction two will also prompt demand for non-traditional benefits like education assistance, childcare benefits, and pet care or insurance.

These changes heighten the need for effective communication between employers and their workers. In a remote or hybrid environment, organizations will rely on new channels to engage their employees like virtual meetings and benefits websites.

6. Equitable health outcomes will be an increased priority and bring more awareness to solutions in the marketplace.

The increased focus on individual and community health has spurred an important conversation about the equity of healthcare access and outcomes – one that is sure to continue in 2022.

A recent survey from McKinsey found that Black, Hispanic and Latino, Asian, and LGBTQ+ employees were less likely to report receiving the healthcare they needed and more likely to consider leaving their organization to get it. A full 30% of these individuals said they had considered switching employers to access better health benefits.

Given that research indicates diverse teams perform better, employers will want to focus on closing this gap and delivering true health equity.

This search is likely to shine a spotlight on existing marketplace solutions like the HSA, the health reimbursement arrangement (HRA), and the flexible spending account (FSA). These benefits all allow a degree of autonomy for individuals in finding and choosing care. With tax-advantaged dollars, employees are free to select the products and services they feel will be most effective in helping them achieve their goals. This is an important step in realizing equitable outcomes in health and wellness.

Getting ready for 2022

Although the forces shaping 2022 can appear daunting, they also present the opportunity to solve important problems and promote positive change. The employers and benefits professionals who take these opportunities to heart will be best positioned for success in the new year and beyond.

Jody Dietel is senior vice president for advocacy and government affairs at HealthEquity.