Beyond The Paycheck: Top Employee Benefit Trends For 2024

Empowering workforce wellness and overcoming retention hurdles

Human resources (HR) professionals can expect to see a continuation of previous trends from last year, especially those relating to post-pandemic work patterns, including remote work, hybrid work, and return-to-office initiatives. We will also see some new trends involving health and women and, not surprisingly, artificial intelligence (AI).

1. Flexibility and Options

HR professionals can anticipate a continuation of the trend towards flexible benefit offerings, a practice that gained significant traction in 2023. This evolution in benefit structures primarily manifests in health insurance and workforce welfare benefits, where employees are now offered a broader array of options in terms of types, costs, and medical provider choices.

2. Remote Work

The pandemic era saw a massive shift towards remote work, and this trend has endured, evolving into a desirable perk. Today, remote and hybrid working models are frequently highlighted in employee job descriptions or recruitment advertising. Approximately 13 percent of U.S. employees are engaged in full-time remote work, underlining the mainstream acceptance of this model. Furthermore, 28 percent of U.S. employees have adapted to a hybrid work model. This benefit is particularly appealing to the younger workforce, notably those aged 24 to 35, who prioritize flexibility and independence. As such, employers are offering remote and hybrid perks in the highly competitive job market.

3. Return to Office Amenities

To encourage employees to come back to the office, some companies are turning to food as a perk, providing catered meals, upgraded coffee machines, and creative snack bars. Others have implemented casual dress codes throughout the week. Some organizations have added employee gyms, walking trails, and quiet spaces to decompress throughout the day as a commitment to their employees' well-being.

4. Financial Health

In addition to traditional tax-free savings plans like 401Ks or 403Bs, many organizations are broadening the scope of their benefits to include financial health initiatives, including individualized financial coaching, student loan repayment plans or loan payoffs, increased company matches to retirement plans, and different smartphone apps to help them track their pay, benefits and finances. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) will also remain popular benefits for managing medical expenses and dependent care.

5. Mental Health

Mental health will remain a prominent component of employee benefit packages. Employers are taking innovative steps to make these services more affordable and accessible, ranging from enhanced clinical care in health plans to mentorships and preventative programs like wellness apps. These initiatives often extend to employees’ families, reflecting a growing recognition of the employer’s role in providing mental health benefits and supporting behavioral health.

The trend is somewhat driven by the younger demographic of workers who are more open to discussing mental health issues. This group also puts a significant amount of emphasis on work-life balance. Some employers offer mental health days (in addition to regular sick leave), wellness programs and activities (meditation sessions, yoga classes, workshops on stress management), and additional resources like informational seminars, webinars, and newsletters. Others offer onsite mindfulness and relaxation spaces where employees can take breaks, meditate, or engage in relaxation activities.

The importance of Employee Assistance Programs (EAP) will continue to grow in 2024 as these employer-sponsored programs may offer confidential counseling services for employees dealing with personal or work-related issues. EAPs often provide access to mental health professionals, legal advice, and financial counseling.

6. Fertility and Adoption Benefits

There’s an increasing focus on women’s health benefits, especially regarding fertility financial assistance and support. Employers are partnering with specialized providers to support employees throughout the family planning process. Some employers are offering voluntary egg freezing as a benefit to women. Fertility benefits are also becoming more inclusive, appealing to diverse groups, including LGBTQ employees who may be interested in having children biologically related to one of the parents.

Similarly, offering assistance with adoption and surrogacy can give companies a competitive edge in recruiting and retention by demonstrating a family-friendly, inclusive culture. Many of these benefits provide equitable support for adoptive parents, similar to what is available to biological parents. Adoption benefits can include financial assistance for adoption-related expenses and paid time off for parents to bond with an adopted child.

7. AI in Benefits

There’s a growing preference for benefits partners and solutions that use AI to educate employees about their benefits. AI tools, including digital assistants and chatbots, are becoming standard in the benefits landscape, enhancing the employee experience while reducing administrative costs.

8. Learning and Development Benefits

Employees are often looking to their employers for opportunities to build their skill sets and invest in their career development from more than just on-the-job training. Many employers are seeking on-demand programs that deliver in-demand skill sets and can propel employees to a higher level of performance. Others offer tuition reimbursement for new certifications and degrees.

Upskilling and reskilling opportunities offer employers an accessible path to reenergize their employees, many of whom are looking to find new meaning without making an organizational move. Internal mobility has become an increasing priority, and it isn’t just for front-line workers. Upskilling can unlock potential for those at all levels.

Overall, these top eight trends show an increasingly holistic approach to employee benefits, considering not just traditional financial security and health insurance but also personal and professional growth, health, and well-being. To remain competitive in a tight labor market, organizations will need to continue to tailor their benefits to a changing workforce.

Author Bio

Kim Wylam is the Managing Partner of the Human Capital (Resources) Consulting Practice at Baker Tilly. Over her career, Kim has developed a breadth of experience in all aspects of human capital, including recruitment, retention, compensation, benefits, workforce planning, payroll, HR operations and compliance. Specializing in HR strategy and development, Kim works with clients representing all industries, including internationally.