Regularly reviewing and improving employee benefits helps attract and retain top talent, promote job satisfaction, boost morale, and increase productivity. It also demonstrates a company’s commitment to employee well-being, which helps nurture loyalty and reduce turnover.
Recent findings show that more than 81% of businesses plan to add or improve their employee benefits in 2024 to support recruitment and retention.
As you prepare for these changes, look into the current state of employee benefits and how to structure your benefits offerings to maintain a competitive edge and contribute to the business’s overall success.
The Current State of Employee Benefits
Employee benefits constantly evolve, with a growing focus on well-being and flexibility. Companies continue adapting to assorted workforce needs, such as remote work options and prioritizing a healthy work-life balance.
However, as talent competition intensifies, there is a growing need for more innovative benefits to attract and retain workers.
Quit Rates and Employer Concerns
Turnover remains a common concern among employers across the country. A recent Harris Poll revealed that one-third (33%) of U.S. hiring managers anticipate turnover at their company to increase next year, resulting in an average annual cost of $36,295. Failure to invest in your talent with the right benefits can increase quit rates as unsatisfied employees look elsewhere for better opportunities.
Impact of Recent Layoffs on Employee Anxiety
Employee anxiety is on the rise due to layoffs becoming common. Layoffs lead to uncertainty regarding job security and workplace stability. Employees who remain despite layoffs might experience high stress levels due to increased workloads.
Trust in management may also erode, negatively impacting team dynamics and engagement.
Trends in Employee Benefits
Keeping ahead of trends in employee benefits can help you attract and retain talent, improve employee satisfaction, and increase loyalty.
Building a competitive benefits package can also boost productivity and lower turnover rates, ultimately growing your bottom line. It’s also important to align your benefits offerings with employee needs to support diversity and create a positive workplace culture.
Some trends in employee benefits to look for include the following:
Shift From Ad Hoc Solutions to Strategic Implementation
In past years, benefit managers would add ad hoc solutions without a target plan of utilization, which had mixed results. However, a shift toward strategic implementation of benefits offerings can lead to higher utilization rates as they are based on what workers want and need in the current employment environment.
Businesses that move away from one-off perks to more personalized benefits can expect to see better retention, engagement, and productivity as they better address specific employee concerns.
Popular Employee Benefits Improvements and Additions for 2024
In 2024, popular employee benefits improvements and additions will focus on workplace flexibility and holistic well-being. Many companies are increasing mental health support for workers, expanding parental leave, and establishing wellness programs to promote physical health.
Remote work options and benefits such as financial wellness programs and student loan repayment assistance will remain prominent.
Data-Driven Decision-Making
Analyzing accurate and up-to-date data is important when building a benefits package as it helps identify the specific needs and preferences of employees.
Data can reveal the usage of certain benefits and their overall rate of employee satisfaction. Leveraging data can also help businesses align their benefits with their organizational goals and stay competitive in the job market.
Here are some of the ways that data-driven decision-making can impact the success of employee benefits:
Increasing Emphasis on Data-Driven Evidence in Employee Benefits Selection
There is an increased emphasis on data-driven evidence that is transforming how businesses design their offerings. By collecting and analyzing data from various sources, such as employee feedback, industry trends, and usage statistics, companies can identify the most valued benefits and develop personalized packages that increase engagement and satisfaction.
A data-driven benefits strategy can lead to more effective benefits that promote long-term retention and align with organizational goals.
HR Leaders Approach to Evaluating Employee Benefits
HR leaders use various strategies to evaluate employee benefits, such as benchmarking. Comparing benefits packages against competitors and industry standards can help keep businesses competitive in the job market.
They may also use other strategies, such as gathering employee feedback, conducting regular reviews of benefits offerings, and performing cost-benefit analysis to determine if the benefits support overall objectives and company culture.
Learn How New City Can Help Structure Your Employee Benefits Offerings
Employers nationwide are working hard to improve employee benefits to meet their evolving workforce needs by offering personalized benefits packages. To approach these changes effectively, consider partnering with an employee benefits consultant.
At New City Insurance, our experienced consultants can help you structure your employee benefits offerings to create a competitive, data-driven package for a satisfied workforce.
Call our office today at 888.210.2765 to learn more about our proven solutions.