Top 5 employee benefit trends that businesses need to know for 2024

Last year was all about flexibility and wellbeing when it came to employee benefits. Although they’re still popular keywords used to attract job candidates, they’re so commonplace that they’re getting stale. Employers who want to attract top talent need to offer more than what others are promising. What’s more, they need to truly deliver on those promises. Here are five trending employee benefits employers should consider offering if they want to meet the needs of employees in 2024.

1. Nontraditional voluntary benefits

Even though health care costs are predicted to drop slightly, from 10.7% to 9.9%, they continue to be a significant expense for businesses of all sizes. Those who can’t cover the cost of their employee premiums should consider offering more voluntary benefits, such as enhanced medical coverage, homeowner assistance, and flexible paid time off. Employers don’t have to pay for them, and employees find them valuable because they can choose the ones that best fit their lifestyle. In fact, 75% of employees say that voluntary benefits are essential to their decision to stay at or leave a job, according to Corestream’s 2021 State of Voluntary Benefits Report.

Other voluntary benefits — that can be paid solely by employees — include:

• Eldercare assistance (1 in 6 Americans care for an adult parent, which can significantly impact their wellbeing at home and at work.)
• Financial counseling
• Stress management services
• Critical illness or cancer insurance
• Tax preparation services
• Accident insurance
• Employee discount programs
• Identity theft protection

2. Support with student loan repaymentThrough the Coronavirus Aid, Relief, and Economic Security (CARES) Act, employees could receive up to $5,250 per year toward student loan payments as part of their employer-sponsored educational assistance benefits. Consider gauging interest to see how many employees would use student loan assistance. If the majority are interested, you can hire a third-party administrator to take care of the details to make sure you’re in compliance. With 1 in 4 privately employed Americans dealing with student loan debt, according to ADP Research Institute, this can be an attractive benefit to top talent.

   3. Employer-Assisted Housing (EAH) programs

   High mortgage rates and cost-of-living expenses make it difficult for employees to own their own homes. An employer that offers homeowner assistance programs can really stand out from the competition if they can help their staff realize their dreams of homeownership. Not only that, but they benefit from increased morale and improved retention.

   With these EAH programs, employees contribute a pre-tax portion of their income to a homeowner savings plan. But other options include down-payment assistance, housing loans, and rental assistance.

   4. Family-centric benefits It’s one thing to say that your company offers work-life balance, but it’s another thing to actually show it. One way to do that is by sharing details of your family-centric (or family-friendly) benefit offerings. These show that you value your employees’ time away from work holistically, not just when they show up to the office. Fertility benefits, adoption benefits, family and parental leave, caregiver support, and specialized support for special-needs children are just a few of the family-centric offerings that can lead to a variety of benefits to employers, including:

• A reputation as a family-friendly employer
• Reduced turnover
• Increased productivity
• Improved morale
• The ability to retain diverse, multigenerational talent

5. Next-level retirement planningOne popular employee complaint is disappointment in their employer’s 401(k) contributions. But, as an employer, you shouldn’t let your inability to boost your employer match get in the way of helping your employees save for retirement. Doing so is important, as it helps your employees focus more on work and less on worrying about their finances.

The SECURE 2.0 Act of 2022 makes it easier for American workers to save for retirement. It introduces new opportunities for individuals to build their retirement savings and provides employers with additional avenues to offer retirement plans.

Related: 3 benefit trends to watch in 2023 (and beyond)

Educate your employees on the ways they can save for retirement and how you, as an employer, can help them under the SECURE Act. Expanded eligibility for part-time employees, optional Roth contributions, and more exemptions from early withdrawal penalties are just a few of the provisions that can help give employees a head start on their retirement planning.

Financial wellness, the American dream of home ownership, family time, and innovative voluntary benefits are top of mind for employees and will be key to retaining and attracting top talent in 2024.

Cheri Wheeler, Vice President and Senior Consultant, Kelly Benefits Strategies