Q4 Updates 2022 State of the Employee Benefits Insurance Market

Q4 Updates 2022 State of the Employee Benefits Insurance Market

Where We Are Now

In our Mid-Year Employee Benefits State of the Market Report, we highlighted key trends that were impacting employers. In this update, we give a quick recap of the trends we observed that were driving up costs and offer additional insights as we look back at what’s happened since then… and ahead to 2023.

Recap: The Great Resignation

The Great Resignation has spurred a massive labor shortage across industries as people leave jobs — with no immediate plans to assume new ones. The move has challenged processes, productivity, and profits for employers across the nation. As the Bureau of Labor Statistics reported, there were about 11 million job openings across the country on December 31, 2021 —and only 6.3 million unemployed workers.


Recently, the U.S. Chamber of Commerce noted that the Great Resignation has not impacted industries equally. Some continue to struggle to fill open positions, while others experienced lower quit rates, lower unemployment, and higher-than average hiring activity.

The Impact of the Great Resignation on Jobs – By Industry

Highest number of job openings:

  1. Accommodation
  2. Food
  3. Healthcare
  4. Social assistance
  5. transportation

Lowest number of job openings:

  1. business and professional services
  2. durable goods manufacturing
  3. education
  4. financial
  5. wholesale and retail trade

Recap: Wage Inflation

To attract more workers back to the workforce, employers are paying higher wages and offering more robust benefit packages that absorb/share higher health plan costs and include a broader array of employer-sponsored offerings. They provide today’s extremely diverse workforce with the customized and flexible options to help preserve a healthy work-life balance. As a result, the required resources to set up, administer, and maintain these programs are swelling overhead and impacting bottom lines.


Overall, employers remain focused on improving healthcare affordability for their employees. Some now provide a medical plan option with a low deductible or even no deductible, and research shows more may consider it for next year.

In addition, employees want access to mental health benefits to address disorders stemming from job-induced stress and anxiety, two after-effects of the pandemic. In its August 2022 Pulse Survey, PricewaterhouseCoopers (PwC) found that 62 percent of employers said their companies have already implemented, or will develop, mental health workplace programs.
A benefit that also ranks high with employees is remote work. Gallup found that 91 percent of U.S. workers hope to continue working at least some of their regular work hours from home. And, about one-third said they would consider looking for another job if they are required to return to the office full-time in the future.

Recap: Larger IT Spend

The shift to more flexible work arrangements and work-from-home policies to accommodate employee preferences are, in turn, requiring employers to make greater investments in secure IT services, equipment, and training to protect against the increased threat of malicious cybercrimes.


Forrester’s 2022 U.S. Tech Market Outlook confirms accelerated tech spending which is projected to grow
by 7.2 percent year-over-year before 2022 is over. It also found that 67 percent of U.S. IT professionals predict increasing tech budgets over the next 12 months, despite increasing inflation, global uncertainty, and continuing supply chain slowdowns.

Recap: Persistent Supply Chain Issues

The Great Resignation and global supply chain disruptions are very closely intertwined – creating an endless cycle of issues for those desperate to find talent and those on the receiving end of the supply shortage. On the supply chain front, the pandemic led to a loss of 1.52 million workers and a shortage of 330,000 truck drivers is forecasted through 2024, according to Business Insider. Bare shelves, inability to complete projects, and much longer shipping times is leading to unhappy, concerned customers.


According to the latest Logistics Managers’ Index, “Future predictions hint at normalization and a return to business as usual over the next year.”

However, that doesn’t necessarily mean a complete recovery yet for the transportation and trucking industry. Labor shortages, backlogs, cyber threats, and global issues are just some of the challenges companies must still wrestle with. And with the holiday season approaching, supply chains remain weak and vulnerable to ongoing disruptions caused by extreme weather events, like Hurricane Ian, fears of a U.S. economic recession, and the continuing war in Ukraine.


The trends impacting your company and your employees will continue to drive the need for adaptation of programs and policies. Stay connected to your employee benefits advisor for help navigating these times and to learn more about creative ways to tackle issues facing your organization.

Contact Your BKS Advisor Today
www.bks-partners.com| 813.984.3200

Comments are closed.

Table of Contents

Recents Post
June Pulse
June 2024 The Pulse Newsletter
Golf cc hospitality state of the market
Hospitality, Golf, and Country Club Market Update
Heat Related webpage
Heat Illness and Workers' Safety Precautions

This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. Baldwin Risk Partners, LLC (“BRP”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. BRP does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, BRP does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.

Baldwin Risk Partners, LLC offers insurance services through one or more of its insurance licensed entities. Each of the entities may be known by one or more of the logos displayed; all insurance commerce is only conducted through BRP insurance licensed entities. This material is not an offer to sell insurance.

Get in contact with an advisor today to see how BKS can support you.