Employee Benefits Continue to Change in Response to Pandemic

For Immediate Release
January 26, 2021

Brookfield, Wisconsin—As we enter 2021, employers continue to make changes to support their workforce through the COVID-19 pandemic.

A report released today by the International Foundation of Employee Benefits Plans finds that organizations are reimbursing work-from-home expenses, adapting their paid-leave policies, offering flexible work schedules, and supporting workers with child- and elder-care responsibilities.

"In March 2020, when employers first began requiring their 'nonessential' employees to work from home due to COVID-19, few of us could have imagined that we'd still be working remotely ten months later," said Julie Stich, CEBS, Vice President of Content at the International Foundation. "Employers have found it necessary to examine their benefit offerings in order to make decisions that best support their workforce while ensuring the long-term success of their organization."

Providing Reimbursements for Work-From-Home Expenses

Before the COVID-19 pandemic, employers report that on average, 14% of their workforce worked remotely, compared with 56% of their workforce who are working remotely now.

This shift has caused some employers to provide reimbursements to employees for expenses incurred when working from home. One-third of employers (31%) are reimbursing their workers for specific items, while 8% reimburse through a general stipend that covers all work-from-home expenses. An additional 17% are considering offering work-from-home reimbursements.

Due to the pandemic, organizations are reimbursing:

• 13% for office supplies
• 12% for office furniture
• 7% for electronic devices such as printers or laptops
• 6% for internet service
• 3% for cell phone service.

Making Changes to Paid and Unpaid Leave Policies

The majority of employers (63%) have made some sort of change to their leave offerings due to the pandemic. The most common changes include the introduction of emergency leave for childcare (19%) and carryover options for workers unable to use current vacation or paid time off (19%).

"Recognizing that employees had few vacation options this year, some employers are allowing workers to roll over more days than usual to 2021," said Stich.

Employers are also offering paid leave to be used for any reason (15%), additional holidays (12%), emergency leave for elder care (11%) and the ability to borrow from not-yet-earned paid time off (11%). Additionally, some employers are offering unpaid leave to be used for any reason (8%) and COVID-19-specific sick leave (5%).

Adding Flexibility for Workers With Child-Care Responsibilities

"For employees who are also parents, one of the greatest challenges of the pandemic has been working from home when schools or daycare facilities are closed," said Stich. "Employers have recognized the need to provide support and are offering options ranging from flexible schedules to virtual school tutors."

Employers have helped workers accommodate child-care and schooling needs by implementing work-from-home arrangements (65%) and permitting flexible hours (59%). Due to the pandemic, more than one in ten organizations (14%) are providing resources and referrals for child care, tutoring, or backup or emergency child care, with an additional 13% considering doing so. About 6% of employers offer virtual day camps for school-aged children, 5% provide financial assistance for tutoring and homeschooling, 3% for child care, and 3% for backup or emergency child care.

Supporting Workers With Elder-Care Responsibilities

During the pandemic, workers with elder-care responsibilities are facing similar challenges to those who have child-care needs, and organizations are implementing arrangements to accommodate these employees. Over half of employers (56%) have implemented work-from-home arrangements, and 42% offer flexible hours to allow for elder-care responsibilities. Other employers are providing resources and referrals for elder-care day programs (6%) as well as legal and financial consulting services regarding elder care (4%) due to the pandemic.

"Which of these workplace changes will become permanent in a post-COVID world has yet to be determined," explained Stich. "It's likely that at least some of these changes are here to stay."

About the Report

Employee Benefits in a COVID-19 World—Six-Month Update provides a look at the changes that workplaces have made to retirement plans, health care offerings, paid leave and flexible work arrangements in response to COVID-19.

Find the full report online at www.ifebp.org/covid19updatesurvey.

###

The International Foundation of Employee Benefit Plans is the premier educational organization dedicated to providing the diverse employee benefits community with objective, solution-oriented education, research and information to ensure the health and financial security of plan beneficiaries worldwide. The Foundation has more than 31,500 multiemployer, corporate and public sector members representing over 25 million lives. For additional information, visit www.ifebp.org.

Members of the media can obtain a complimentary copy of the report by contacting [email protected].