This past year was an eventful one for employer-sponsored benefits, and 2018 is already shaping up to be memorable, too. In addition to what’s happening on Capitol Hill, new emerging technologies and an increasingly more diverse and mobile workforce will continue to shape the way benefits professionals navigate through 2018.

Here are the benefits trends that employers—and employees—should be watching.

Healthcare uncertainty

Nearly everyone was impacted in some way as the new presidential administration dealt with the Affordable Care Act, made appointments to key roles like Health and Human Services secretary and FDA commissioner, changed reimbursement rules and more. In 2018, this uncertainty appears to be here to stay. Congress continues to make changes to the healthcare law without completely dismantling it, like removing the individual mandate through the recently passed Tax Reform bill. These types of changes are giving employers serious headaches as they try to keep pace with the rapid revisions, which are fraught with complicated compliance requirements.

Welcome, Gen Z!

Members of Generation Z (those born between 1995 and 2010) are joining the workforce at a younger age. Unlike their millennial counterparts, Gen Z employees have grown up in a world where technology and social platforms have always been a part of their lives. In 2018, employers must evolve their communication strategies to reach this new cohort, including using visuals to get their point across, quick and succinct messaging, personalizing communications and making them available on employees’ device of choice.

The gig economy is real

Freelance and contract workers continue to grow in numbers. Since last year, freelance workers increased by 30% with an estimated 57.3 million Americans. More individuals are working on their own terms, driving the growth of the gig economy. Many employers with contractors, or a population of part-time and variable hour employees are working to ensure both health and wealth protection through employer-provided benefits. In 2018, workers eligible for these types of benefits will need significantly more visibility into their options, with a centralized location where they can review and learn more about what’s available to them.

Time to get personal

New and emerging technologies are impacting all facets of human resources (like recruiting and onboarding), but in the benefits space, employees want substance over flair. In 2018, employees will expect personalized experiences to help them understand benefits options, guide them through enrollment and make data-driven decisions relevant to their specific situation. Employers should look to technologies that can help them intelligently engage with employees via personalized messages, recommendations and educational materials.

Financial wellness impacts productivity

According to the New York Federal Reserve, the total student loan debt now totals $1.31 trillion as of the fourth quarter of 2016, a 170% increase over a decade. Meanwhile, The Kaiser Family Foundation/New York Times survey recently found that 26% of U.S. adults ages 18-64 say they or someone in their household had problems paying or had an inability to pay medical bills in the past 12 months. In fact, 31% of Americans have less than $500 in their savings accounts.

This kind of financial stress has a profound effect on the workplace—up to 80% of workers spend time at work stressing about their personal financial situations. Financial strain also impacts physical wellness, absenteeism, presenteeism and productivity.

In 2018, employers should offer and promote new benefits types such as student debt consolidation and microloans to help set themselves apart during the recruiting process. Also, providing health saving accounts, preferably with a match by the employer, can encourage employees to establish a medical safety net in the case of an unforeseen emergency.

With the current unemployment rate at just 4.1%, companies are facing increasing competition for top talent. To recruit and retain the best candidates, traditional benefits aren’t enough – employers must be innovative and offer practical benefits that cater to each individual employee’s unique situation. In 2018, more benefits administrators and HR professionals will realize that they are responsible for providing the resources that will keep employees happy, healthy and secure. They are a company’s most important asset—and more employers are starting to treat them that way.

Cindi Van Meir, is director product marketing, Benefitfocus.

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