2024 Guide to Employee Benefits: Navigating the New Normal

By Elise Thorpe

As we enter 2024, we're standing at a unique crossroads. Economic uncertainties loom large, yet the competition for talent rages on. It’s a familiar balance act for employers — juggling budget constraints with the growing demands of a workforce that craves more than just a paycheck.

Let’s take a closer look at some of the key factors impacting employers’ approach to benefits in 2024.

Place Well-Being at the Heart of Benefits

The shadow of COVID-19 has permanently altered the employee benefits terrain. Gone are the days when standard packages sufficed. Now, benefits are a lifeline, a tangible expression of an employer’s care for its workforce.

As employees grapple with issues like office re-openings, financial stress and mental health, there's a noticeable gap: 88% of employers feel they're ticking the right boxes in employee well-being, but only 66% of employees agree.

Bridging this gap is crucial, not just in offering comprehensive benefits but also in enhancing their "perceived value" — how employees assess the merit of your benefit package and its effectiveness in meeting their needs.

Use Tech to Personalize Employee Education

Financial stress and mental health have become focal points, with employees seeking broader coverage, including:

• Short and long-term disability
• Critical illness
• Emergency savings
• Career development.

Despite the growing demand for a diverse range of benefits, many employees tend to stick with familiar plans. Surprisingly, 89% of employees choose the same benefits year after year, often due to a lack of understanding — only 53% are fully aware of their health care costs.

So, how can employers effectively meet their employees' needs?

Personalization is key. A significant 85% of HR leaders recognize the need for personalized benefits, echoing the desires of 70% of employees who seek customizable options. Equally important is digital innovation, with 80% of employees highlighting the importance of digital platforms in managing their benefits.

Now is the time for employers to develop a savvy benefits strategy and invest in a variety of communications to engage, educate and support their employees in navigating their benefits options.

Think Beyond the Health Plan

Employers are discovering that creativity in their benefits offerings, such as providing financial support for daily expenses and innovative options like pet insurance, is striking a chord with employees. In fact, pet insurance is emerging as a popular benefit, with nearly one in five employers now offering it.

But it's not just about adding more benefits. It's about being smarter with what you have. Turning to digital health solutions, like telemedicine, offers convenient health care access and addresses a broader spectrum of needs. This approach ensures every dollar invested in benefits works both harder and smarter.

Align with Todays WFH Reality

While traditional absence and disability leave remain fundamental, there's a growing emphasis on more flexible leave options to support employees' work-life balance and lifestyle needs. Employers should expand their benefit packages to include a variety of leave types, such as:

• PTO Exchange Flexibility: Nearly 90% of employees value the option to convert their Paid Time Off into other benefits, such as cash for emergencies, contributions to health savings accounts, or to aid in paying off student loans.
• Family & Parental Leave: Employers are increasingly offering parental leave, extending beyond traditional maternity leave to include foster, adoption and paternity leave, with an average duration extended from six to seven weeks.
• Post-Pandemic Work Flexibility: With 80% of companies allowing some form of work-from-home, flexible work environments are now a norm. Employers are also adopting innovative strategies like four-day work weeks to combat employee burnout.

Tailor to Generational Preferences

While all generations expect more from their benefits, millennials and Gen Zers have really spearheaded these greater expectations. However, specific needs do differ from generation to generation, including:

• Boomers: A significant 71% are concerned about retirement savings, highlighting a need for financial planning focused on retirement.
• Gen Xers: About 64% are seeking flexible work options and caregiver benefits, aiming to balance the care of their children with that of their aging parents.
• Millennials: For 43%, student debt assistance stands out as a critical benefit.
• Gen Zers: Facing the highest work-related burnout, 45% of Gen Zers are on the lookout for better mental health benefits, with 61% willing to switch jobs for this reason.

Evolve with the Workforce: The MMA Approach

Today's workforce seeks more than just a paycheck, and employers require more than just a broker to meet these evolving needs. Discover how MMA's insights into emerging trends, cost-effective alternatives and powerful technology tools can help you maintain a competitive and engaging talent strategy.

Get in touch with an MMA representative or explore our comprehensive range of employee benefits to stay ahead in today's dynamic workforce landscape.