Organizational Wellness

Top 6 Employee Benefits Trends for 2024

Last Updated Sep 19, 2024

Top Employee Benefits Trends for 2024: Mental Wellbeing Support, Flexible Work Arrangements, Physical Wellbeing Programs, DEI Initiatives, Physical Wellbeing Program, Personalized Benefits

What do you think matters most when it comes to retaining and attracting top talent?

If you said "benefits," you're right! That's right — employees are 150% more likely to stay at a company if it offers stellar benefits, according to a Met Life study.

Offering benefits that meet employees' needs can transform your organization into a thriving environment they love. One way to stand apart from competitors is to track employee benefit trends. Staying abreast of new employee benefits trends can alert you to what employees are looking for from the organizations they work for. Discover 2024 benefits trends unfolding at organizations nationwide, and how to use them to your advantage.

Trend 1: Mental Wellbeing

There's no doubt that mental wellbeing plays a role in employee engagement and productivity. Employees who experience problems with mental wellness, including stress, anxiety, and depression, are more likely to quit, burnout, or express feelings of anger or unmotivation. Over 90% of workers prefer to work for a company that supports their emotional and psychological wellbeing, according to a study by the American Psychological Association (APA).

The same study found that 20% of employees who suffer from excess workplace stress are less productive. Another analysis found that employees who report problems with mental wellness are over 20% more likely to feel less engaged at work, with 19% actively disengaged.

Employers are paying attention. In 2023, over 60% of companies reported offering some form of mental wellness support. That number is expected to reach 75% in 2024.

A few of the top mental wellbeing benefits companies are adding to their offerings include:

Mindfulness Program

An organizational mindfulness program aims to reduce employee stress through workshops, wellness apps, or online courses. Sessions may include meditation, yoga, and other calming activities. By offering benefits that specifically address the symptoms of employee stress, you can lighten your teammates' mental load, promoting a positive workplace environment.

Employee Assistance Program (EAP)

An Employee Assistance Program (EAP) provides confidential services to workers who encounter difficult life situations, including family issues, mental wellness struggles, and substance abuse. Through an EAP, employees can access counseling and educational programs that support mental wellness. Usually, the services are free and available anytime.

Mental Health Days

Employees can sometimes feel overly stressed, agitated, and overwhelmed. While they can try to push through their feelings, it often signifies a need for a mental health day. Companies that offer mental health days allow workers to take time off for self-care. The time off may be paid or unpaid, but it gives employees a chance to relax and take care of their needs free from work responsibilities.

Trend 2: Flexible Work Arrangements

The pandemic introduced remote work to a large portion of the workforce. While many organizations brought employees back to the office once the government declared an end to the emergency, employees learned they could do their jobs from home. The flexibility of remote and hybrid work is attractive to many workers, with over 80% declaring they want to choose where they work, whether at home or their regular office.

Flexible work arrangements give employees more control over their schedules and where they do their jobs. It can also boost worker performance and productivity by up to 40%, according to Gartner. This is because employees who work in their preferred work environment — whether that's in the office, hybrid, or remote — report higher levels of wellbeing, fitness, and employee satisfaction, according to a Wellhub survey of more than 5,000 employees.

Since everyone wins with flex work, here are several ways to introduce it at your organization.

Flexible Work Schedules

You can offer flexible schedules that allow employees to set their start and end times according to their needs. On a flexible work schedule, there are no hard and fast start and end times. Instead, every employee chooses their desired schedule, so long as they can complete their tasks. You might consider setting a few core hours where everyone's on-site for specific activities, like meetings or goal planning.

Hybrid Schedule

Under a hybrid schedule, employees work at the office several days a week while working from home on the other days. This gives workers extra flexibility and a little downtime from the office. A hybrid schedule can be less stressful for those with a long commute. It's also more personable than a fully remote schedule since employees still get valuable face time with their colleagues.

Fully Remote

Some organizations adopt a fully remote model, where everyone works from home or another location they feel comfortable in, like a co-working office. This model is ideal for organizations that don't have an office or whose employees work from various cities, states, or even countries.

If you decide to implement flexible work arrangements, try to find a solution that best aligns with organizational and employee needs. You may consider holding a focus group or asking for employee input to learn what flexible work arrangements your team prefers.

Trend 3: Financial Wellness Programs

Over 60% of U.S. adults experience stress and anxiety arising from personal finance issues, according to a Bankrate study. They worry about being able to afford everyday expenses, like rent and groceries. And such financial problems can roll over into their work lives — over 50% of employees say that their monetary situation makes it hard to sleep at night multiple times each month, and another 66% of workers say personal finances distract them from their jobs, according to Wellhub's State of Work-Life Wellness 2024 report.

Employers recognize the impact that money problems have on their employees, and they're starting to offer benefits meant to reduce financial-related stress. Some of the personal finance 2024 benefits trends include:

Financial Planning Tools

Some organizations provide employees with access to financial planners and advisors. A financial planner can help employees create a monthly budget, manage their existing debt and credit cards, and establish a savings plan. They may also assist with long-term financial goals, like retirement planning, saving for a down payment on a home, or funding a child's college education.

You might also consider offering access to budget tracking apps, a more affordable solution that directly empowers employees manage their finances at any time.

Student Loan Repayment Assistance

The average borrower who takes out student loans to finance a college education owes $28,950. That figure can be even higher for students who attend graduate programs. Increasingly, organizations are offering student loan repayment assistance (or tuition reimbursement) to alleviate some of the financial burden on employees.

Emergency Savings Funds

The SECURE 2.0 Act of 2022 authorized employers to set up pension-linked emergency savings accounts (PLESAs). These savings accounts allow employees to designate part of their earnings to the account, and employers may contribute, too. Employees may withdraw funds to cover financial emergencies without incurring a tax penalty.

Trend 4: Diversity, Equity, and Inclusion (DEI) Initiatives

Employers increasingly recognize the value of emphasized diversity, equity, and inclusion (DEI) measures. Such efforts focus on making the workplace a more inclusive environment where all employees feel safe and heard, regardless of race, ethnicity, religion, sexual orientation, or gender. A majority of workers believe DEI initiatives positively impact the workplace. Not only workers who gain from DEI — businesses may see a productivity boost of 35% or higher.

An important part of building a welcoming workplace is an inclusive approach toward your overall benefit plans. For instance, while traditional healthcare plans provide insurance for single and married individuals, employers may offer alternative plans for workers in domestic partnerships or LGBTQ relationships. Other potential benefit options include adoption and IVF assistance, paid maternity and paternity leave, and help for caregivers.

Policies that specifically support DEI include:

Greater Pay Transparency

Pay transparency helps ensure employees receive equal pay for equal work, regardless of gender or race. To promote pay transparency policies, you can disclose pay in new hire job descriptions and for existing organizational roles.

Employee Resource Groups

An employee resource group helps foster workplace belonging for workers with specific traits like gender or ethnicity. You can establish employee resource groups based on the composition of your workforce. For instance, if a portion of your workforce identifies as Black or Asian, you might set up an employee resource group to support those workers.

Mentorship Program

A mentorship program connects new employees with more experienced ones and may aid in professional development and career advancement. It's especially beneficial for young workers new to the professional world or individuals from traditionally underrepresented minority groups. By connecting employees with a mentor, they receive helpful guidance from successful employees or leaders in the organization.

Get More Out of this Employee Benefits Series:

What Benefits Do Employees Value Most?

Employee Benefits Guide for HR Leaders

HR Guide to Benefits Strategies That Attract & Retain Top Talent

How to Build an Inclusive Benefits Plan That Supports Every Employee

How to Optimize Your Employee Benefits Strategy

How to Build a Competitive Benefits Package that Wins You Top Talent

Why Are Benefits Strategically Important to Employers Today?

Strategic Benefits Strategy for Employee Retention and Engagement Long-Term

Maximize Benefits ROI: Data-Driven Strategies for HR Leaders

Trend 5: Physical Wellbeing

An employee's physical health can impact their productivity, engagement, and quality of work. Suffering from health problems, including obesity, diabetes, high blood pressure, and high cholesterol, makes it hard to give your all to your job. In fact, 99% of employees say that physical fitness and nutrition impact their wellbeing and productivity, according to a Wellhub study.

The prevalence of obesity and diabetes is growing, according to a Gallup poll. Over 38% of American workers identify as obese, while over 13% are diabetic. And 34% of adults say they're unable to perform their usual activities for two or more days due to health issues.

Supportive employers are offering new benefits to promote physical wellbeing among their teams. Some trending benefits include:

Gym Memberships

Free or discounted gym memberships allow employees to exercise at local fitness centers, resulting in greater physical activity. You may also support employees' physical fitness by offering on-site fitness classes after work or giving employees access to online fitness classes and apps.

Nutrition Programs

Nearly 80% of employees say their work quality would improve if they had a better diet, according to Wellhub data. Go the extra mile by providing employees access to nutrition programs, including educational workshops, apps, and healthy snacks in the workplace.

Sleep Trackers

About 30% of workers profess to unhealthy sleep habits. Consider providing sleep tracker apps and wearables that alert employees to sleep problems and poor sleep quality so they can take steps to get quality Zs, like wearing blue light glasses or getting enough activity during the day.

Trend 6: Personalized Benefits

Another way employers are trying to support their workers' needs is by offering personalized benefits plans rather than one-size-fits-all programs. With personalized benefits, employees can select the ones that matter most to them, resulting in a tailored plan that provides the most perceived value.

One of the most common forms of personalized benefits is health insurance. Organizations that personalize healthcare plans offer an array of options, including traditional HMOs and PPOs, plus other options like high-deductible healthcare plans and Health Savings Accounts (HSAs). Employees can select the plan that best aligns with their health needs.

Wellness benefits are also highly customizable. While employers may offer financial, mental, and physical wellness programs, workers may wish to enroll in only some options. You can meet employees' needs by offering a holistic program with offerings for everyone so they can pick exactly what they want.

Another area where employers may provide personalized benefits is professional development. Employees seeking to upskill or reskill their work capabilities may opt into benefits like tuition reimbursement, certifications, and online training courses.

Optimize Your Benefits Plan for the Future

Offering a competitive benefits plan sets your organization apart from competitors. By paying attention to new benefits trends and incorporating them into your offerings, you may find attracting highly qualified applicants and retaining talented employees easier.

The best part? Many benefits that made the list aren't expensive — and some can even benefit your bottom line. . Promoting employee's physical and mental wellbeing can improve productivity, engagement, and job satisfaction. The impact is so powerful that 90% of companies that invest in wellbeing programs see a positive ROI from their initiatives, and more than half see $2 in returns from every $1 invested.

Wellhub offers comprehensive wellness solutions for employers seeking to boost their benefits offerings. Our program supports physical and mental wellness through access to gyms, nutrition apps, fitness classes, and more. For help meeting employee benefit expectations, speak to a Wellhub Wellbeing Specialist today!

Company healthcare costs drop by up to 35% with Wellhub! (* Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.) Talk to a Wellbeing Specialist to see how we can help reduce your healthcare spending!