Discover key insights from Glassdoor's employee studies on the dissatisfaction with benefits packages among professionals and learn about other trends that companies are expected to face in 2024.
The Importance of Employee Benefits
Employee benefits play a crucial role in the overall satisfaction of professionals. According to Glassdoor's economic research, a significant 51% of professionals are unhappy with their benefits package, which only 30% of employees report being satisfied, and 19% are unsure (1). This highlights the importance of offering attractive and comprehensive benefits to employees.
Having a strong benefits package not only enhances employee satisfaction but also contributes to increased employee retention and engagement. Employees value benefits such as health insurance, retirement plans, and other non-cash perks that improve their overall well-being and financial security. Therefore, employers need to prioritize offering competitive benefits to attract and retain top talent.
Another study from Glassdoor reported that 10.9% of people consider benefits as the most important factor for employee satisfaction, following Culture and Values (18.4%), Work-Life Balance (12.1%), and more (2). This differs between frontline and office workers, and satisfaction varies across industry as well.
Trends in Employee Benefits
As the landscape of employee benefits continues to evolve, it is essential for companies to stay ahead of the curve. Employers need to adapt their benefits offerings to meet the changing needs and expectations of employees. This includes exploring new benefit options and staying updated on industry trends.
1. Slippery Benefits
While wages and salaries are likely to continue increasing, non-cash benefits are facing erosion. Glassdoor's report on employee benefits reveals a concerning trend of sticky wages and slippery benefits. In particular, benefits like commuter assistance and gym credits are falling out of favor, and the share of employees reporting access to vision insurance has stagnated - especially in industries impacted most by financial concerns in 2023, such as tech and finance (3). There are a small number of benefits that continued to rise over the past year, including fertility assistance, adoption assistance, parental leave, and mental healthcare, which also points to the trend of an increasingly younger workforce.
2. Goodbye Boomers
According to Glassdoor, "Gen Z is poised to overtake Baby Boomers in the full-time workforce by early 2024" (3). As Millennials and Zoomers dominate the workforce, employee expectations are projected to change to lean more heavily on community connections, transparent leadership, and diversity in the workplace. Boomers had the lowest expectations of employers to demonstrate care in their personal lives, but Gen Z, Millennials, and people of color all have above-average expectations in the same area (4). Interestingly, Metlife reports that in 2024, "Gen X employees are the least likely to say they feel cared for by their employers" (4). All of this points to the importance of tailoring benefits to life stages, positions, and personal circumstances.
3. Hello Personalization
To keep up with evolving expectations, continue to solicit feedback from your employees. The rising trend in personalization may also impact which benefits are offered, as there are now cost-effective ways to provide unique selections to each employee based on need. 78% of employees say benefits personalization is important, and 75% would like "custom decision-making support based on their mental, physical and financial needs" (4). This is projected to only increase as boomers are the generation least interested in tailored benefits, and worker groups like women and millennials currently have the highest discrepancies between the importance of benefits personalizations and their satisfaction with benefits currently offered (7%, 14%, and 11%, respectively) (4).
Gain Competitive Advantage by Offering Voluntary Benefits
Glassdoor's data suggests a decline in the availability of benefits such as 401k plans, dental insurance, tuition assistance, commuter assistance, gym memberships, and mobile phone discounts. One such example of this - at the end of 2023, IBM announced it will no longer match employee 401k contributions. Shortly after, Glassdoor, which operates primarily as a workplace review platform, saw a 30% spike in total posts and comments by IBM employees on the platform (1). After facing backlash, IBM announced a new "Retirement Benefit Account" to re-establish the benefit to employees; however, financial experts aren't impressed (5).
This trend of declining employee benefits presents an opportunity for companies to gain a competitive advantage in the job market. Retention is more important than ever, and 73% of employees say that a wider array of benefits would make them continue working at their employer for longer (6).
One way for companies to gain a competitive advantage in the realm of employee benefits is by offering voluntary benefits. Voluntary benefits are additional perks that employees can choose to opt into, based on their individual preferences and needs. These benefits can include things like pet insurance, identity theft protection, financial counseling, and wellness programs. By providing a diverse range of voluntary benefits, employers can cater to the unique needs of their employees and differentiate themselves from competitors.
In 2021, Willis Towers Watson identified the top five fastest growing benefits that serve to better meet the needs of a diverse workforce, especially those affected by the pandemic. These include Identity Theft, Hospital Indemnity, Pet Insurance, Critical Illness, and Group Legal benefits (7).
Overall, 94% of employers find voluntary benefits to be important to their employee value proposition and expect these benefits to hold great importance in their organizations during the next three years (7).
How BenefitHub can help
BenefitHub is a valuable resource for employers looking to enhance their benefits offerings and gain a competitive advantage. BenefitHub provides a comprehensive platform that allows employers to offer a wide range of benefits and perks to their employees. This includes access to discounted products and services, wellness programs, financial counseling, and more.
By partnering with BenefitHub, employers can streamline their benefits administration processes and provide employees with a user-friendly platform to access and manage their benefits. Learn more about BenefitHub, or contact us today.
Sources:
(1): Glassdoor Economic Research, "Conversation Starter: Half of Professionals are Not Satisfied with 2024 Benefits Package."
(2): Glassdoor Economic Research, "What Makes or Breaks Employee Satisfaction Remains Intact."
(3): Glassdoor Economic Research, "Glassdoor's 2024 Workplace Trends."
(4): Metlife's 22nd Annual U.S. Employee Benefit Trends Study 2024
(5): USA Today, "Goodbye match, hello retirement benefit account? What IBM 401(k) change means."
(6): Metlife's 20th Annual U.S. Employee Benefit Trends Study 2022
(7): "Pandemic accelerates employer voluntary benefit offerings, Willis Towers Watson survey finds"