How the gig economy and remote work is reshaping employee benefits

The workplace has changed dramatically over the past half-decade. Now, “zoom” is no longer just a camera function. It’s an essential workplace communication tool. “Work from home (WFH)” is the norm, and employers have offered unprecedented levels of flexibility over the past few years. Remote jobs with benefits are more common than ever, changing how companies consider their benefits packages to best suit their workforce. 

How can employers acknowledge this changing landscape and offer benefits to dispersed remote employees without increasing the level of administrative work? Read on to learn more.  

The data: A changing, post-COVID workforce

The COVID-19 pandemic is in the rearview, but its impact on how we work is undeniable. According to the Bureau of Labor Statistics, 22.9%, or 35.5 million people, tele-worked or worked at home for pay in 2024. According to the Pew Research Center, 75% of working adults who have a job that can be done remotely work from home at least some of the time.

Remote workers seem to be passionate about their flexibility. In another Pew Research Center Study, almost half of the people who work from home (46%) would be “very” or “somewhat” unlikely to stay at a job if they were required to return to the office. 

And the remote workforce continues to grow. Over 2024, 5.1 million people joined the telework force, according to the Bureau of Labor statistics. 

Where employees work and how they work have dramatically changed in the past few years. 

The challenge: How a changing workforce impacts coverage

The changing workforce has proved beneficial for many employees, creating an improved work-life balance, creating more opportunities across the country, and increasing job satisfaction overall. However, with these benefits comes a trade-off; the shifting workplace landscape has made offering employer-sponsored healthcare even more challenging. 

Traditional employer-sponsored healthcare plans were designed to accommodate in-person, full-time employees. These benefits may be less applicable or more challenging for employers to offer based on the following:

• Multi-state compliance. With a remote workforce, employees might be scattered across the country, posing a challenge to differing insurance regulations across states. 

• Cost. Providing consistent, comprehensive coverage to employees across different employment statuses and locations can be burdensome to a benefits administrator. 

• Turnover. New workstream options such as the gig economy can mean high employee turnover rates, making providing consistent benefits a challenge. 

Traditional employer-sponsored healthcare plans don’t necessarily align with the portability and flexibility emerging in the workplace as the number of flex jobs and remote work continues to rise. 

ICHRA: A solution for remote workforces

Full-time remote work is becoming a permanent part of the workforce. Isn’t it about time for a solution that reflects these changes to become part of the healthcare landscape? 

While traditional employer-sponsored health plans will most often cover remote workers, there are other options that may help reduce the administrative  burden on businesses. Individual Coverage Health Reimbursement Arrangements (ICHRAs) could be the solution for employers who want to tailor their benefits to better suit their dispersed workforce. Introduced in 2020, ICHRAs allow employers to help pay for employees’ individual health insurance policy premiums through tax-free reimbursements. ICHRAs apply to employees, but not independent contractors.   

ICHRAs can help address the flexibility employees crave in their remote jobs with benefits, helping them pay for coverage no matter the state they live in or their employee classification. 

Employers can customize the amount they reimburse employees for coverage based on their employee class (e.g., part-time, full-time, remote, etc.). Similarly, ICHRAs can simplify healthcare compliance across state lines since employees pick coverage via a state marketplace.

Is ICHRA the right fit? Explore these next steps

Do you offer remote jobs with benefits? If ICHRA feels like a solution to meet the changing needs of your workplace, here’s what to keep in mind as you explore the next steps and feasibility. 

• Assess workplace needs. Start by conducting employee surveys. Are they happy with their current healthcare coverage? Additionally, determine the proportion of remote workers across your organization. 

• Explore implementation. If ICHRA seems like the best fit, consult with a benefits expert (like Thatch) to design an offering that aligns with the company budget and employee needs. At the same time, consider developing materials to help guide employees through the ICHRA selection process. 

• Communicate changes clearly. Give employees plenty of time to adjust to ICHRA, organizing information sessions to explain the benefits and functionality of the new coverage. Continue providing continuous support to address employee questions and concerns during enrollment.

Usher in new workplace benefits with Thatch

The post-COVID era has ushered in a more flexible and diverse workforce, including workplace location and even part-time employees. These changes have challenged the traditional benefits structures, leaving space for healthcare innovations that speak to our existing workforce. 

ICHRA can help address these workplace challenges, offering tailored benefits that meet the needs of both employers and employees. If you’re ready to explore ICHRA, Thatch can help. Schedule your free demo today to see how our solutions can manage costs, offer personalized remote benefits, and empower your employees.