The type of benefits offered could shape your workforce

In over 20 years as advisors, one of the biggest challenges we face is helping employers bridge the growing gap between what they offer in benefits and what their employees want and really need it. Year after year, surveys highlight this divide. Employees find their benefits unattractive while employers struggle with rising costs.

Several recent national reports, including PeopleKeep’s 2024 Employee Benefits Survey, reveal more information about how employees view their benefit plan offerings. Here’s what they say:

What workers want

First, the “usual” offerings: medical and dental insurance, paid vacation, retirement plans and vision coverage. For example, in a survey of more than 1,000 employers and employees, more than 90% of workers considered these benefits vitally important. We’re not surprised to see these traditional benefits top the charts. This is what most people think of when they talk about employee benefits.

That said, despite their declared importance, less than half (47%) of workers believe that the benefits offered by their employer correspond to their needs and personal situation. Two thirds believe there are notable gaps in their overall offering.

We regularly hear this frustration directly from employees. A 26-year-old software engineer may prioritize visual benefits to combat screen fatigue, while a traveling sales rep might appreciate a more generous PTO to balance their busy schedule. A multigenerational workforce adds to the question of creating the right mix of benefits to meet the needs of all employees. Simply put, a one-size-fits-all approach to employee benefits simply doesn’t work.

Austin Lehman, CEO of benefits provider Remodel Health, said: “This survey highlights the need for flexible, personalized benefits solutions tailored to diverse needs. » We couldn’t be more in agreement, and wise people will listen to their collaborators. By leveraging options like Individually Covered HRAs, Qualified Small Employer HRAs (QSEHRAs), and emerging supplemental benefits, organizations can build compelling packages that verify all boxes for employers and employees.

Cost remains the main objection for employers looking to improve their offerings. More than half (56%) cited financial constraints as their biggest barrier to receiving stronger benefits. Even more worrying, 11% offer no benefits.

While understanding of these pressures, we advise our clients that seeking “bargain” benefits is short-sighted (depending on your long-term goals). Workers repeatedly said employer benefits were a key factor in deciding whether to accept a job offer — in fact, as many as 81% in recent surveys. Experienced staff agreed, with one Purvey respondent bluntly stating, “To keep quality workers these days, you have to maintain competitive benefits packages, or your best employees will leave.” »

Beyond recruitment and retention, there is also the question of employee satisfaction, their productivity and the reduction of costs linked to turnover. Countless studies demonstrate the positive business impacts of offering attractive employee benefits – benefits that quickly offset any upfront expenses.

The good news

A majority of organizations (89%) indicated they plan to enhance their current benefits and/or add new offerings over the next year. This is a sigh of relief for us, because as our clients’ trusted advocates, advisors and partners, we want to see all parties satisfied and supported. It is also our duty to ensure that the work is carried out thoughtfully and cost-effectively.

Our main advice is simple: listen to your employees and understand their needs and priorities. Too often we see employers settling for peripheral benefits while neglecting the plans their employees need most. This is where internal employee surveys or focus groups can go a long way in understanding what everyone wants and needs.

From there, employers can get creative in finding affordable, high-quality benefits by exploring different traditional options, financing strategies, professional employer organizations (PEOs), package supplemental benefits options, tax-advantaged reimbursement and voluntary benefit programs. There are many innovative solutions beyond conventional employer-sponsored group plans.

Don’t get overwhelmed

Finally, employee benefits can seem intimidating. Benefits professionals can guide you through the myriad of regulations, compliance requirements and an ever-changing benefits landscape. Together, you can navigate the benefits maze and it will make all the difference in crafting robust, cost-effective packages that your employees love.

Ultimately, employee benefits are a crucial piece of the talent acquisition and retention puzzle. Employers who overlook their importance in favor of salary alone will inevitably struggle to attract and retain top performers. Armed with survey data like PeopleKeep’s findings, your own internal employee surveys, and expert benefits advice, employers can position themselves for success by closing gaps and offering packages valuable that enrich the lives of employees.