By Perry Braun – July 24, 2024

published by NABIP

As we enter the second half of the year, there’s a sense of déjà vu.  Policies that address voters’ financial position, feeling of security, basic living expenses, and education will be central.  Still, dramatic change is doubtful, given the fractured state of politics.  We’ll need to wait at least a year or two for real action, and what happens will depend on the political configuration of the government.  More immediately, the following issues are likely to impact NABIP members.

While the economy will continue to expand, monetary and fiscal policies will work against each other.  Businesses hope that interest rates will move downward to lower the cost of borrowing capital.  At the same time, they will find it challenging to retain labor as other companies pay more to recruit workers.  This upward pressure on wages will put pressure on inflation, and the cycle will continue.

Employers will balance cost savings against too many adjustments that could lead to an exodus of talent.  Two-thirds of American workers believe their pay is inadequate to cover the rising cost of inflation, according to Bank of America.  Many are making spending decisions based on short-term needs rather than long-term consequences, such as forgoing prescription drugs.

Shifting Workforce Dynamics

Expect inclusion, diversity, and social and environmental causes to progress at different speeds based on the business’s leadership and region of the country.  Employees increasingly want a voice and a seat at the decision-making table.

Company reactions to these conversations will be scrutinized against employee retention, productivity, and what other local businesses are doing.

Employers will move cautiously and be more data-dependent in decision-making to stay with other employers in their space.  Correspondingly, we see a lot of discussion about the impact of AI and its role in workplace strategy.

Perry Braun is president & CEO of the Benefit Advisors Network (BAN), an exclusive network of progressive and independent employee benefit brokerage and consulting companies in the U.S. and Canada.