13 Employee Benefits Trends to Watch in 2024

As the dust of the pandemic finally settles, employers must offer the perfect spread of benefits to support employees during the new world of work. 

But when the latest trends constantly shift in line with employees’ priorities, it’s easy to fall behind on what your workers want and expect from you. To keep you up to speed, we’ve dug deep into the 13 employee benefits trends we expect in 2024. 

Flexibility

Since the pandemic, employees have demanded more control over their careers and work-life balance, reflected in some of the following benefits they crave in 2024. 

1. Flexible work arrangements

Increasingly, we hear that companies are calling their workers back to the office, believing in the power of real-time, in-person communication from a central location. But return to office mandates didn’t really take off as expected in 2023, and there’s little to suggest it’ll be any different in 2024. 

Resume Builder research found that 9 out of 10 employers would mandate RTO in 2023, and the results are exactly the same a year later. Yet, remote work is still going strong, with 98% of virtual teams stating they would like to continue working remotely for the rest of their careers. 

Of those companies that have already mandated RTO, only 19% of them require every employee to be in the office every day. Instead, there’s huge flexibility in how often and when employees are expected to make the journey to work. It’s clear that this careful approach is critical—37% of employees who have already returned to the office are unhappy with the situation, and 29% will quit the organization unless the policy is reversed. 

2. Four-day work weeks

As employees strive to improve their work-life balance, a three-day weekend becomes increasingly appealing. On his podcast, thought leader Josh Bersin explains why he expects the four-day week to quickly become the norm. 

“Ask yourself, why are people stressed? It’s a continued overhang of the pandemic, remote work challenges, the complexities and inconsistencies in hybrid work, and something else that’s going on. And that is that the younger part of the workforce, who are going to be living a lot longer than people who are baby boomers, are basically saying, ‘I don't really want to kill myself just to get ahead. I want to have a life. I want to quietly quit. If you guys don’t take care of me, I’m going to work my wage, meaning I’m going to work as hard as I’m paid. No more than that.’ And that mentality has created an environment for the four-day work week, which I think is coming probably a little quicker than you realize.”

Companies may choose several ways to compress their work weeks into fewer days, including the following: 

• Standard four-day work week: Buffer famously transitioned to working four days per week in May 2020. 91% of the team report feeling happier and more productive as a result. ‍
• Summer Fridays: Kellogg’s, ASOS, and PwC are among those that allow their employees to finish at lunchtime on Fridays throughout the summer to take advantage of the better weather.‍
• Nine-day fortnight: In this model, employees squeeze their working hours into nine days instead of 10, then take the second Friday off. ‍
• One Friday per month: Less appealing than some of the other options, employees take 12 days of extra PTO per year. 

3. Personalized benefits packages continue

Companies must cater to multiple generations of employees from multiple corners of the world, each with varying life situations. To suggest each of your people should have identical benefits is absurd, which is where the theme of personalized benefits comes in. 

Rob Heir, VP of Total Rewards at Bright Health, says:

“People are looking for more and more flexibility, and that flexibility allows them to focus on what their priority is at the time. Are they focused on retirement? Are they focused on health benefits? Are they focused on flexible work? The more flexibility that your package provides, it allows people to migrate to what’s important to them.” 

A lifestyle spending account (LSA) allows employees to customize their benefits to their unique needs and gives employers more flexibility to design a program that meets organizational goals. Employers pre-fund the account, and employees can spend it on various eligible expenses such as wellness, mental health, professional development, childcare, or food. 

Our benchmarking report found LSAs to be the second-most popular perk among Benepass customers, with 40% of companies offering them at an average of $185 in monthly funds. A recent Mercer survey also discovered that 70% of companies have considered adding an LSA to their benefits package because it empowers companies to increase employee compensation, reduce point solution fatigue, and create more inclusive benefits programs. 

Download our complete benchmarking guide to dig into benchmarking data for various types of benefits from companies of all sizes and industries. 

Diversity, equity, and inclusion

DEI lost some ground in 2023 due to the economic downturn, with hiring for DEI positions dropping 48% from the previous year. Nevertheless, Sankalp Chaturvedi, Associate Dean of Equity, Diversity, and Inclusion at London’s Imperial College Business School, puts forth a compelling case for companies to invest in DEI. She explains:

“When gender, ethnicity, or any form of diversity is on the table, quality of discussions and decision-making is better, creativity is improved, and the performance of the organization and its culture is stronger.” 

Here are some key DEI benefits trends we expect to see in 2024. 

4. Neuroacceptance 

Around 15 to 20% of the population are neurodiverse, which encompasses people with autism spectrum disorder (ASD), attention deficit hyperactivity disorder (ADHD), dyslexia, dyspraxia, and other social anxiety disorders. Employers can support employees who fall into this category in multiple ways, for example, by offering: 

• Technology stipends to pay for headphones for those who struggle with auditory overstimulation or literacy software for dyslexics.
• Flexible childcare for working parents with neurodiverse children
• Remote work arrangements for neurodiverse employees who have social anxiety or sensory overload in a busy office environment

5. Equal pay

Equal money for equal pay should be a no-brainer, yet the gender pay gap is still 84% for full-time workers and 78% for all workers, including seasonal and part-time employees. 55.15% of women believe they’re not fairly paid in their current role, and there are also pay gaps based on race, age, and nationality, which become even worse if you belong to several of these categories. 

To turn the tide on wage discrimination, some cities and states, such as New York City and California, have already enacted pay transparency laws. These pay transparency laws are spurring HR leaders to revisit their compensation and total rewards strategies. In some cases, employers will need to increase their wage bill to provide equity. As part of your employee’s compensation package, benefits should be equitable and available to all. 

6. Reproductive benefits 

Family formation benefits are another way that employers can promote DEI values. Infertility impacts 1 in 6 people worldwide, contributing to a 20% decline in the U.S. birth rate over the past 10 years and shrinking workforces in Japan, the UK, China, and Germany. The cost of assisted reproductive techniques, such as in vitro fertilization (IVF) or intracytoplasmic sperm injection (ICSI), can put parenthood out of reach for some employees unless their employer is willing to support women’s reproductive health. Carrot Fertility’s Global Report of 5,000 employees across the UK, U.S., Canada, India, and Mexico reveals: 

• 60% believe that employees should have better access to fertility benefits 
• 97% want employer-led support in addressing fertility care needs in the workplace
• 65% would change jobs to work for a company that offers fertility benefits 

If fertility benefits fall outside your healthcare plan, employers may offer a dedicated Family Care and Formation plan which employees can use to fund fertility care, adoption, paid parental leave, childcare, or family planning services. 

7. Menopause 

Menopause costs the U.S. economy $1.8 billion per year in lost productivity, leaping to $26.6 billion when you factor in medical expenses. This inevitable life stage can become a medical issue for women, causing symptoms of anxiety, depression, sleep deprivation, stomach cramps, brain fog, menstrual flooding, and many others that undeniably impact their work. 

Only 3% of female employees feel comfortable talking to their manager about their symptoms, but 64% of American women between 40 and 65 would like menopause-specific benefits to support them. 

For example, benefits consultant NFP describes that 4% of employers offering sick leave have also incorporated menopause support, such as hormone therapy and counseling, into their policy. Microsoft has also rolled out menopause support to complement its existing family and fertility benefits. 

8. Benefits for part-time employees

Part-time work is a great solution for working parents, those with elder care responsibilities, or anyone studying part-time. It’s flexible and convenient but doesn’t always include access to benefits. This means part-time workers must allocate their own funds toward 401(k) and health insurance, which they frequently can’t afford. 

Companies like Chipotle, Macy’s, Starbucks, and Lowe’s make a difference by offering their part-time team members benefits, ensuring they can access health insurance, retirement savings, and other wellbeing programs. 

Wellness

Past employers have focused on physical health by offering medical benefits or discounted gym memberships. However, our benchmarking report highlights that modern employers now consider all the dimensions of wellness when building out their benefits. Here are some that are trending this year. 

9. Mental health benefits 

The Josh Bersin Company reveals that the number of employees at tremendous risk of burnout has increased from 63% in 2019 to 81% in 2023. To combat this, research suggests that 91% of employers expect to invest more in mental health support for their teams. And there are some interesting new forms of support available. 

Wellable research finds that 80% of employees would be comfortable speaking to an AI-based robot counselor. Similarly, Heka’s research reveals that 4 in 5 people prefer virtual experiences and apps instead of in-person therapy. 

10. Financial wellness

Last year saw huge investment in financial wellness programs, as the economic climate and surging inflation rate pushed living costs through the roof for many employees. While the landscape is expected to be more stable in 2024, Wellable reports that 30% of companies have increased their investment in financial wellness, while 57% have maintained their existing investment in this area. 

Popular benefits include access to financial counseling, financial education, student loan assistance, tuition reimbursement, and legal support to deal with debt and rising costs. 

11. Telemedicine

The pandemic created huge growth in virtual healthcare, enabling people to have video calls with a doctor without an in-person appointment. A few years down the line, companies still recognize the value in providing 24/7 access to healthcare. As a big-brand example, Walmart has recently rolled out its virtual primary healthcare benefits to employees nationwide after a successful pilot program in Colorado, Minnesota, and Wisconsin. 

According to Wellable, 65% of employers expect to invest more in telehealth this year, so we might see other large brands commit to this healthcare model. 

Professional development

83% of employees want career advancement opportunities most from a job today. And if you don't offer them? A recent Conference Board survey found that 58% of respondents would be more likely to leave an employer if it doesn’t provide education and training to develop new skills, stay up to date on current trends, and advance their careers. 

Jon Hill, Chairman and CEO of The Energists, an executive search and recruiting firm, explains the importance of professional development opportunities:

“Employees of all ages appreciate when companies support their ongoing education through reimbursement or payment of professional development and skill certification courses, particularly in the tech field or other industries where staying current with the industry trends is crucial to do your job effectively.”

Employee development opportunities allow your employees to stay on top of the latest technology and industry trends, giving your organization a valuable competitive edge. Consider some of the following ways to advance your employees and retain their talent in 2024: 

12. Mentorship programs

Mentorship programs are an affordable development strategy that requires a time commitment rather than a financial investment. Pairing new joiners or early career professionals with seasoned experts passes on institutional knowledge, opens up networking opportunities, and provides access to hands-on advice. Studies show that mentorship also bolsters your DEI initiatives by increasing minority representation in executive positions. 

Mentorship currently tops the L&D program priority list, according to LinkedIn’s Workplace Learning Report. It’s also something you could easily introduce to your workforce as part of your professional development benefits. 

13. Learning management systems

83% of organizations use a learning management system to handle their training needs, with 3 out of 4 relying on it more during the past two years. The latest LMS platforms have incorporated generative AI into learning management systems, revolutionizing how training content is created, customized, and delivered to employees.  

The new technology can automate and personalize the development of learning materials, such as simulations and quizzes, making them more relevant and engaging for individual learners. An LMS can also analyze large datasets to identify skills gaps in your workforce so you can create tailored learning paths as required.

Offer the latest trends in employee benefits with Benepass

With Benepass, it’s easy to offer the most enticing benefits to your employees. Whether you’re offering staples like retirement plans and health coverage or the latest trending wellness benefits, it’s easy to administer them all from our central, intuitive platform. 

Ready to learn more? Book a free, no-obligation demo of Benepass or contact sales@getbenepass.com with any questions.