While Most Employers Are Preparing to Head Back to the Office, Some Are Hoteling It

For Immediate Release
June 2, 2021

New Report Examines Latest COVID-19 Workplace Issues, Including the Future of Remote Work and Vaccines

Brookfield, Wisconsin—A new report released today by the International Foundation of Employee Benefit Plans provides a snapshot of the current workplace environment and what employees can expect as they return to work.

"The pandemic has presented a unique opportunity for employers to examine their benefit offerings and overall culture and to make changes that they may not have made otherwise," explained Julie Stich, CEBS, vice president of content at the International Foundation. "It has accelerated trends that were already in motion, brought to the forefront new ideas and priorities, and given organizations an opportunity to evaluate what works best for their workforce."

How Are Employers Handling the COVID-19 Vaccine?

The majority of employers (63%) are strongly encouraging vaccination, but few employers, just 4%, are mandating that workers be vaccinated. Fourteen percent of employers are providing incentives to encourage worker vaccination.

Employers are verifying worker vaccination in a variety of ways, including:

• Asking workers to show proof (i.e., documentation) of vaccination: 15%
• Asking workers to verify vaccination but not asking to see documentation: 11%
• Mandating proof/documentation of vaccination: 5%.

Eight percent of employers are requiring workers to sign liability waivers or release forms related to COVID-19, and 11% are considering doing so.

Who Will Return to the Office, and What Can They Expect?

Employers report that, on average, 55% of their workforce is currently working remotely. When asked to look ahead to April 2022, employers anticipate that roughly 32% of their workforce will be remote. Prior to the pandemic, employers reported that 12% of their workforce worked remotely.

"There is no doubt that COVID-19 has forever changed how we work," said Stich. "Postpandemic, employers are anticipating that nearly three times as many employees will be working remotely as were doing so prepandemic—And concepts like a hybrid workforce or hoteling are gaining traction."

When employees do go back to the workplace, many will be returning to an office that looks different from the one they left. Changes employers are making to the physical workspace include:

• Implementing hoteling for some or all workers: 18%
• Downsizing the physical workspace: 17%
• Making other changes such as adding plexiglass barriers and air purifiers, enhancing cleaning protocols or limiting the number of people in the building: 13%.

Nine percent of employers report they are eliminating the physical workspace altogether.

What Other Changes Are Organizations Making?

Increased Access to Mental Health Benefits

Due to the pandemic, 23% of employers added telepsychiatry as an employee benefit, and 9% are considering adding it. Of those that added telepsychiatry, almost all have made it a permanent change (71%) or are considering making it a permanent change (26%).

Additionally, the pandemic caused 16% of employers to add services to their mental health benefits, while 21% are considering adding services. Of those employers, 83% say it's a permanent change.

Flexibility for Caregiving

Many employers have implemented more flexible hours for caregiving needs. For some workplaces, these changes will be permanent. Nearly half (48%) of employers have implemented flexible hours to accommodate child-care needs during the pandemic and, of those who have made this change, 28% report that it is a permanent change, and 46% are considering making it permanent.

During the pandemic, 35% of employers have implemented flexible hours for elder-care needs. Of those who have made this change, 35% report that it is a permanent change, and 42% are considering making it permanent.

Changes in Vacation/Paid-Time-Off Policies

The pandemic also caused many employers to make changes to their carryover options for vacation days or paid time off, allowing employees more options for their unused time off. In the last year, 17% of employers have implemented more carryover options for paid leave. Almost a quarter of those employers (24%) plan to make this a permanent change, while 17% are considering making it permanent.

About the Report

Employee Benefits in a COVID-19 World—One Year Update was conducted in May 2021 and is the third installment in a series examining the implications of COVID-19 on health care benefits, paid leave and flexibility as well as return-to-office considerations, including physical workplace changes and worker vaccinations.

The full report can be found at www.ifebp.org/covidoneyear.

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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 31,000 multiemployer, corporate and public sector members representing over 25 million lives. For additional information, visit www.ifebp.org.