What Employee Benefit Trends Are in Store for 2024?
Employee benefits have come a long way since the days of basic health insurance and retirement plans. According to a recent study, the use of lifestyle benefits has jumped40% since 2020 and has taken many forms that reflect the changing landscape of how we go to work—from providing funds for home office setup, to online workout classes.
In today’s competitive job market, companies are constantly evolving their benefits packages to attract, engage, and retain top talent. Looking at benefits trends for 2023, we can learn more about what to expect as we look ahead to 2024, and several key trends are emerging in the world of employee benefits.
These trends reflect the changing needs and priorities of the workforce, as well as the broader societal and economic landscape.
Let’s explore what employee benefit trends are in store for 2024.
1. Emphasis on Physical and Mental Health Support
Healthcare costs continue to rise, and employees are looking to their employers for support.
In 2024, we can anticipate companies expanding their healthcare benefits to include more comprehensive coverage, lower deductibles, and telehealth options that can help work against the prohibitive rising costs of healthcare.
Additionally, companies may invest in preventive healthcare programs to help employees maintain their physical health and well-being to reduce long-term healthcare costs.
Companies are also beginning to offer support with family planning, including:
- Adoption assistance.
- Fertility benefits.
- Surrogacy benefits.
- Parental leave.
- Reproductive health care.
One of the most significant trends in employee benefits for 2024 is a heightened focus on mental health support and well-being, in addition to support for physical health.
The COVID-19 pandemic has underscored the importance of mental health, and employees are increasingly seeking support in this area.
Companies are responding by offering a range of mental health benefits, including:
- Employee Assistance Programs (EAPs).
- Virtual therapy sessions.
- Meditation and mindfulness resources.
In 2024, we can expect to see even more comprehensive mental health offerings as employers recognize the value of maintaining the physical and mental health of their workforce.
The pandemic accelerated the adoption of flexible working arrangements, including remote work and flexible hours. Even as people return to the office, these arrangements are likely to become a standard part of many benefits packages.
Companies will need to offer flexibility not only to attract talent but also to retain it. This may include the option to work from home, compressed workweeks, or the ability to set one’s own hours within certain guidelines.
3. Financial Wellness Programs
Employees are increasingly concerned about their financial well-being, and companies are taking notice. In 2024, expect to see a rise in financial wellness programs that provide resources and guidance on budgeting, saving, investing, and debt management.
These programs may also include access to financial advisors and tools to help employees plan for retirement and other long-term financial goals or even investment incentives and stock options for publicly traded companies.
4. Diversity, Equity, and Inclusion Initiatives
Diversity, equity, and inclusion (DEI) have become central themes in the workplace, and employee benefits are no exception.
Companies are incorporating DEI initiatives into their benefits packages by offering resources and support for underrepresented groups, promoting diversity in leadership roles, and ensuring that benefits are equitable for all employees.
As companies continue to see the inherent value in fostering a diverse workforce, we can expect to see a continued emphasis on DEI as a fundamental component of a comprehensive benefits strategy.
The past few years have reshaped how we think about work and family life. As a result, many employers are expanding their parental and family benefits to better support employees in their caregiving roles.
This includes the following:
- Increased paid parental leave.
- Subsidies for childcare.
- Access to family-friendly policies, such as flexible scheduling and remote work options.
With four generations represented in the workforce, the support offered by employers can look different to baby boomers caring for their parents or a millennial caring for their children.
Flexibility in offering family support is important so no person is left out of the equation.
6. Personalized Benefits Packages
Employees have diverse needs and preferences, and companies are recognizing the value of offering personalized packages. Moving forward, we can expect to see more sophisticated benefits customization tools that allow employees to choose the benefits that best align with their individual circumstances and priorities. This could include options for different types of insurance coverage, retirement plans, and wellness programs, depending on the age and interests of the employee.
7. Environmental and Sustainability Initiatives
With increasing awareness of climate change and environmental issues, some companies are incorporating environmental and sustainability initiatives into their benefits offerings.
This includes:
- Eco-friendly commuting options.
- Tax-free travel incentives.
- Support and motivation for reducing carbon footprints.
- Support for employees who want to make sustainable choices in their personal lives.
Looking ahead, we can expect to see more companies aligning their benefits with environmental values.
8. Continuous Learning and Development Opportunities
As the job market evolves rapidly, employees are seeking opportunities for continuous learning and development to stay competitive. Companies are responding by offering education and training benefits, including tuition assistance, mentorship programs, and other professional development opportunities.
Offering to cover continued education expenses results in a more talented employee that feels invested in, which encourages loyalty and worker retention. Expect to see an expansion of these offerings as companies invest in their employees’ long-term growth and career development.
Technology is playing an increasingly significant role in how employees access and manage their benefits.
As these lifestyle benefits continue to diversify and evolve, we can expect to see companies investing in user-friendly technology platforms that make it easy for employees to navigate and take full advantage of their benefits packages.
This may include the following:
- Mobile apps for benefits enrollment.
- AI-powered chatbots for answering benefits-related questions.
- Personalized benefits dashboards.
Employee benefits trends for 2024 reflect a shifting landscape in the world of work and employee expectations. Companies are placing a greater emphasis on employee well-being, flexibility, diversity and inclusion, and personalization.
By staying attuned to these trends and continuously adapting their benefits packages, companies can position themselves to attract, engage, and retain top talent in the competitive job market of the future. Employee benefits are no longer just a perk but a critical component of a company’s overall strategy for success in the years ahead.
Are you interested in upgrading your benefits package to adapt to these employee benefits trends? Edenred offers employee benefit programs guaranteed to help. Schedule a meeting with us today to learn more.
