Employee-centered benefits will be key to attract and retain talent in 2024

Next year will be the first time Gen Z makes up a larger portion of the U.S. workforce than baby boomers. With this shift, organizations should continue to think critically about the benefits they’re offering to attract and retain this new generation of workers. It’s becoming clearer that standard benefits offerings like health care and retirement plans are no longer enough to entice new talent, especially as younger workers are about as likely to change jobs in favor of benefits packages and work-life balance as they are for increased compensation.

My team at Jabra recently surveyed 76 academic and industry experts, ranging from business management writers to psychologists, to better understand how employee preferences will continue to shape the workplace. The findings reaffirm that companies must be prepared to follow their employees’ lead in 2024, and this includes changing their approach to benefits packages, so they better fit the expectations of younger workers. Benefits related to wellness, sustainability, and workplace flexibility have historically been seen as nice-to-have, but the data increasingly shows that these more holistic experiences will become crucial to attract the next generation of quality talent.

Prioritize employee wellbeing

As mental health continues to grow as a top concern for employees in 2024, organizations must recognize that peak productivity occurs when individual employee wellness is prioritized. Businesses should therefore look to increase visibility into their teams’ workflows to reduce burnout and support emotional wellbeing. Offering self-help resources will also become more prevalent next year, encouraging a non-toxic and inclusive internal culture.

At the same time, AI therapy chat bots, health tracking platforms, and health wearables are making wellness and mental health services more accessible than ever. Organizations may consider adding these wellness tracking tools to their benefits offerings to help employees monitor their emotional needs and overall wellness. Additionally, emotion-based working spaces will become more prevalent, incorporating a mixture of closed and open spaces, where different color palettes and lighting set-ups can accommodate different emotional states or personality-based needs.

Demand for sustainability rises

Amid escalating climate concerns, organizations are increasingly adding environmental sustainability to the list of key business priorities. Employees, too, are watching how their companies are incorporating environmentally friendly business practices into their everyday operations. Younger employees, specifically, desire to work for companies that match their eco-friendly values. They prefer to work in more sustainable office spaces or cut their pollution-causing commutes entirely, versus more traditional benefits like the opportunity for business travel.

Businesses can incorporate this trend by offering rewards to workers who demonstrate sustainable habits in their routines, such as biking or walking to work. Investing in and promoting eco-friendly facilities – like setting up their offices in LEED-certified buildings – is also attractive to many employees.

Flexibility is key

While return to office efforts have been surging in the last year, some companies are recognizing that the old way of doing business is not going to win them top talent. Some economists even believe that the post-pandemic “return to office” effort is being abandoned, with work-from-home rates plateauing in 2023. This is a trend that will likely continue into 2024, as it becomes more evident that to attract and keep diverse talent, businesses must offer at least some level of flexibility.

Related: Employee-centric benefit solutions: Balancing costs and employee needs

Beyond work location, organizations will also increasingly offer flexibility on the types of tools employees use. By allowing team input into these decisions, workers will be able to pick the equipment and environment they find most comfortable, which will boost productivity and job satisfaction. While growing employee choice over the devices and tech they work with everyday might not seem like the most traditional benefit offering, this kind of flexibility is exactly the level of control over their day-to-day experience that many employees crave and seek out in their roles.

Invest in employee-centered benefits

Overall, organizations must emphasize making employees feel celebrated and supported at work, especially as younger talent continues to join the workforce. Data shows that businesses should continue to invest in employee satisfaction by providing value-consistent resources and work features, such as mental health and wellbeing support, personalized training programs to improve skills and employee growth, and flexible work options. These features should be considered crucial employee benefits and see a surge in adoption in 2024, ultimately aiding in the success and happiness of teams.

Sandeep Raithatha, Senior Director of Global Marketing, Jabra