The Employee Benefits Landscape: Notable Changes in the Post-COVID Era

Quick look: It’s been five years since the global shake-up of the COVID-19 pandemic. Everyday life radically shifted, including the way we work. It was a time of uncertainty and back-and-forth changes, but what evolved was an insightful perspective of what employees benefited from most which ultimately set the tone for expectations today.

For some, five years have gone by in a flash. For others, a sense of normalcy has seemed like a slower return. Even as company leaders are still determining the right setup for their workplace, there’s no denying employees have shifted their priorities.

The years immediately following the pandemic involved an evaluation of work-life balance, leading millions of workers to voluntarily leave their jobs. Since then, many have returned to the workforce but with new expectations in mind.

To support this shift and lessen the impact on businesses, brokers have begun to partner with professional employer organizations (PEOs) on a more frequent basis.

Working with a PEO automatically expands a broker’s service offerings by providing clients with tailored HR and benefit solutions. There’s also built-in customer support, industry expertise, and advanced technology to support company growth.

This coming together of brokers and PEOs reflects where we are in 2025. Creativity and collaboration go hand-in-hand as small- and medium-sized business (SMB) leaders are enlisting brokers to help them adapt and remain competitive in recruiting and retaining top talent.

In the current employee benefits landscape, if companies plan to be profitable, they must consider including work environment flexibility, customized healthcare plans, and a greater sense of purpose as part of their HR strategy.

Here’s a closer look at benefit considerations and how brokers are adapting to a new reality by leveraging the HR expertise and experience of a PEO.

Flexible work arrangements

The option of remote or hybrid work opportunities, as well as flexibility in work hours, is in higher demand than pre-pandemic when a 9-5 was largely accepted. A recent survey revealed 46% of workers said they would consider leaving their job rather than return to full-time, in-office work if their current employer eliminated work from home options.

Employees cited better work-life balance, more productivity, childcare difficulties, and saving costs on commuting as key reasons why flexible work arrangements are preferable.

To maintain high employee retention, companies have experimented with a range of solutions. Whether it’s optional remote working days, four-day work weeks, or another change in schedule, business leaders have heard the demand loud and clear and are making adjustments.

Customized healthcare plans

Furthermore, post-pandemic workers are focused on benefit customization to fulfill their unique needs. Employees still seek traditional benefits including healthcare plans and retirement savings accounts.

Nonetheless, they also want more mental health resources, financial wellness programs, and tuition reimbursement, among other benefits as part of a holistic approach to well-being. While the norm before had largely been a blanket medical care plan for all employees, several generations now make up the workplace, and these one-size-fits-all benefits aren’t nearly as relevant.

Interactivity and engagement are required from both employers and their employees to align benefit plans to what is actually going to make a difference.

Greater sense of purpose

During the pandemic, many employees were already feeling the burnout of their jobs. The temporary halt allowed employees time to reflect on their next steps.

They realized their lack of job satisfaction partly came from losing their purpose. When navigating the modern benefits landscape, it’s important to note employees are interested in working with companies whose values align with theirs, especially among the Gen-Z demographic.

Organizations experience greater engagement and retention when they offer purpose-driven benefits such as environmental sustainability initiatives and opportunities fostering social responsibility. The average person’s time is spent at work, and people want to feel a greater sense of purpose from it.

How brokers have adapted to a new reality

The benefit landscape has wildly shifted, but with limited resources and bargaining power, SMBs are under pressure to compete with larger corporations able to meet these demands. Here is where a broker-PEO partnership plays a pivotal role in a client’s retention strategy.

Brokers have been called upon to act as strategic advisors who align their clients’ growth goals. Working with a PEO allows them to expand their offerings by giving access to Fortune 500-level benefits and cost-effective HR services.

However, big-box PEOs are often strapped for time and offer catch-all HR plans to cover a higher quantity of clients. Whereas, a boutique PEO like ExtensisHR provides the personalized attention SMBs need to stay flexible and thrive despite workforce changes including:

• Tailored HR solutions – ExtensisHR offers enhanced benefits customized to what each client requires. From traditional options like health insurance and 401(k) accounts to family-forming benefits and mental health programs, HR plans are designed with each work population in mind.
• Complimentary recruiting – Most PEOs offer employee recruiting as an add-on service creating an additional cost for SMBs. A full-cycle recruiting solution and ongoing talent management are a complimentary part of ExtensisHR’s comprehensive HR and benefit services. 
• People-first approach – Our HR managers work closely with brokers’ SMB clients to create programs with purpose-driven benefits relevant to their employees, such as wellness initiatives, time off for volunteering, and diversity and inclusion programs.
• Remote adaptability – The ExtensisHR team can adapt to flexible work models including payroll and compliance guidance for multi-state and hybrid operations. Additionally, with a centralized HR platform, SMB leaders can handle HR tasks and be connected with resources on-demand wherever, whenever.

The pandemic caused a ripple effect which companies cannot avoid. Employees want more in terms of working conditions, benefits, and overall sense of purpose.

Therefore, business leaders are faced with whether they want to meet these demands or risk losing their most valued talent. The path is made easier with a PEO, and brokers can bridge this connection for their clients.

Want to learn the benefits of partnering with a broker-friendly PEO like ExtensisHR? Contact our team today.