Navigating the Benefits Buffet: How to Choose the Right Mix for Employees
With the number of potential employee benefits rising swiftly, employers face tough choices, deciding which perks provide the highest value.
As of 2024, the range of possible job benefits has expanded to 216, up 23% from 175 just two years ago, according to data from the Society for Human Resource Management‘s annual benefits survey. That tally includes everything from traditional medical insurance and retirement plans to newer options like financial wellness guidance, pet care subsidies, and workshops on menopause.
Most employers opt to supply the basics — 97% make some form of health coverage available, the survey shows. But with the job market still hot in 2024 despite economic uncertainty, and a growing focus on supporting work-life balance and well-being, companies are increasingly considering a wider assortment of extras.
The question is: how do they decide what makes the cut?
Ask Employees What They Want
HR specialists urge employing a time-tested yet often under-used solution: survey your workers to learn what they need most. A data sourcing specialist said that ultimately, employers should aim to provide the benefits that seem most likely to satisfy their workforce.
In the past, companies took a broad-brush approach, an expert said, offering benefits deemed useful to most people. Now, to be more competitive in the marketplace, employers need to drill down.
That’s when niche benefits come in handy for attracting talent. For example, a data analyst suggested that having a large selection of specialized benefits, even if not all apply to every employee, demonstrates an effort to meet diverse needs.
Employers are using various methods to gather worker feedback:
Surveys
Annual comprehensive surveys with 50 or more targeted questions related to benefits are commonly used to get quantitative data. Some companies go further by checking in more frequently through quarterly pulse surveys to get ongoing insights.
Informally incorporating benefits feedback into regular one-on-one meetings between managers and employees is another simple way to collect input.
Focus Groups
Assembling groups of 8-10 employees for guided discussions of benefits preferences provides qualitative data to illustrate survey findings. Facilitators encourage open and constructive conversations to pinpoint which offerings employees value most highly and where they see gaps.
Stay Interviews
Interviewing employees when they leave a company offers another lens, revealing benefits that met or fell short of expectations enough to impact job satisfaction and tenure. Comparing feedback from exit interviews and stay interviews helps assess the role of benefits in retention.
External Benchmarks
Researching industry surveys supplies useful context on norms for benefit offerings in a given sector. This allows employers to compare their lineup to competitors in order to spot potential weak spots in key areas employees prioritize.
Medical Claims Data
Analyzing what medical services, drugs and procedures employees are using shows emerging health challenges that new benefits programs could help address. It also helps project future costs by revealing if certain conditions are becoming more prevalent.
For example, over the past four years at New York health benefits provider Progyny, using a feedback-focused approach has resulted in new leaves for difficult situations like NICU stays and parental loss, plus enhanced mental health support, financial guidance, and more.
A rewards executive said incorporating employee input is necessary for creating a benefits package that genuinely addresses their requirements. As a result, Progyny has grown its workforce by 285% and retained 84% of its staff.
Pay Attention to External Forces
Industry trends and current events also influence benefit decisions. For example, the pandemic spotlighted employees’ widespread mental health struggles. That led many employers to expand access to counseling, meditation apps, and other support.
Likewise, 40-year high inflation and rising interest rates in 2024 left many households financially fragile. In response, more companies began offering financial literacy programs and emergency assistance funds.
In a few cases, high-profile advocacy also sparks benefit trends. For instance, Microsoft, Sanofi and other major employers recently began providing menopause education and counseling. Experts attribute much of this development to vocal celebrities like actor Halle Berry calling for more workplace sensitivity.
It also comes as U.S. senators co-sponsored a bipartisan bill this spring to fund research, training and education on menopause. Nearly one-fifth of companies now supply menopause-specific assistance, according to the SHRM survey.
An expert observed that as taboos fade, more open discussion of once-sensitive topics like menopause prompts more businesses to consider related benefits.
Above all, benefit consultants emphasize that actually acting on findings is critical. An analyst stressed that employees want concrete change based on their feedback, not just to be heard. The key is active listening and communication focused on needs followed up with changes that address those needs.
For more Employee Benefits resources, contact INSURICA today.
Copyright © 2024 Smarts Publishing. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
